IGCSE Travel and Tourism Practice Exam

Which process involves selecting a target market for products and services offered?

1. Product development

2. Market segmentation

3. Customer engagement

4. Competitive analysis

The correct answer is: Market segmentation

The correct answer is market segmentation. This process involves dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics. These characteristics may include demographics, behavior, geography, or psychographics. By identifying distinct groups within the overall market, businesses can tailor their products and marketing efforts to meet the specific needs and preferences of each segment, which can enhance customer satisfaction and increase sales. Market segmentation enables companies to effectively target their offerings and ensures that their marketing messages resonate with the intended audience. This strategic focus is crucial in the highly competitive travel and tourism industry, where understanding diverse customer needs can lead to more effective promotional strategies and improved service delivery. The other processes mentioned focus on different aspects of marketing and product strategy. Product development refers to the creation and improvement of products or services, customer engagement is about fostering strong relationships with consumers, and competitive analysis involves assessing competitors to determine business positioning. While these aspects are important, they do not specifically address the process of selecting a target market.