Certified Park and Recreation Professional (CPRP) Practice Exam

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What is the relationship between market segmentation and target market?

Market segmentation always targets the entire market
Target market is a result of market segmentation
There is no relationship between the two
Market segmentation focuses on product pricing

The correct answer is: Target market is a result of market segmentation

The relationship between market segmentation and the target market is that the target market is indeed a result of market segmentation. Market segmentation involves dividing a broad market into smaller, more defined categories based on shared characteristics, such as demographics, psychographics, geography, and behavior. This process allows businesses to identify specific groups of consumers who are likely to respond positively to their products or services. Once the market has been segmented, businesses can then select one or more segments to focus their marketing efforts on. This selection becomes their target market. Thus, the target market reflects the specific audience that the business aims to reach, which is derived from the broader segmentation process. Understanding this relationship is crucial for effective marketing strategy, as it enables businesses to tailor their messaging and offerings to appeal directly to the needs and preferences of the defined target market.