The process of dividing the total market into several groups whose members have similar characteristics is called target marketing.

Question

Quizplus · Accepted Answer

The process described is called market segmentation, not target marketing. Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities. Target marketing is the next step, where a specific segment is chosen to focus marketing efforts on.

The Process of Dividing the Total Market into Several Groups