BUS2001 Topic 05
by Sunny Chan (Email: sunnychan@hsmc.edu.hk ; tel. 3963 5262)
In-class exercise for BUS2001—Topic 05
1. You work for an adventure tourism company in Hong Kong. The managing director
has suggested that the company should develop specific tour packages for Indonesian
families with at least five children under age 2 and at least one woman over 50 in Hong
Kong.
(a) Which segmentation base is the managing director using?
Demographic segmentation involves dividing the market into groups based on demographic
variables such as age, gender, family life cycle, income and social class, religion and ethnicity,
and place of residence.
 Demographicage, family life cycle, ethnicity, place of residence
(b) Consider the target market. Evaluate whether it is viable.
target market: Indonesian families with at least five children under age 2 and at
least one woman over 50 in Hong Kong
Hint to part (b): As mentioned in Chapter 6 and PowerPoint , a viable target segment should satisfy the
following requirements: measurable, accessible, substantial, differentiable, and actionable.
A. Measurable:
Can marketers measure the segment?
Yesdemographic factors(e.g.:age, family size) are easy to measure
B. Accessible:
Can marketing communications reach the segment?
unknowndon’t know additional info. is needed
e.g.: any media(e.g.:magazine) targeted at Indonesians in HK?
C. Substantial:
Is the segment large enough to be profitable?
Probably not.  such families would be quiet few in HK
D. Differentiable:
Are members of the segment different from other segments in terms of needs and
wants?
Probably yeshas special requests e.g.: need a tour guide who could speak
Indonesian / non-pork meal
normal HK ppl. May not have such requests.
E. Actionable:
Can the marketer serve the segment’s needs?
Unknowdon’t know additional info. is needed
e.g.: have staff who can speak Indonesian?