The groups of people a business aims to serve.
Segmentation is about dividing consumers into groups, called Customer segments, based on what they value.
Targeting is about determining which of the Customer segments to focus on in marketing efforts to achieve a high Return on Marketing Investment (ROMI). The targeted customer segments should be selected to maximize long-term profit. Consider factors such as:
Defining how a product/service should be perceived by customers in the target Customer segment is called positioning.