Which term is a way of analyzing a market by specific characteristics to create a target market?

• A. Market Segmentation
• B. Market Research
• C. Marketing Concept
• D. Intangibility

Answer: (A)

Analyzing a market by specific characteristics to create a target market is market segmentation. This approach groups customers who share traits such as demographics, geography, psychographics, or purchasing behavior, then designs products and marketing messages tailored to each group. In hospitality and tourism, segmentation helps you match offerings to distinct guests—for example, business travelers who value efficiency, families seeking kid-friendly options, or travelers prioritizing sustainability—so resources and promotions are focused where they’ll be most effective. Market research is broader data gathering about markets and customers, not the act of carving the market into target groups. Marketing concept is a business philosophy centered on delivering value and meeting customer needs, while intangibility describes a characteristic of services, not how markets are analyzed.