A company wants to target high-income urban professionals with a premium product. Which concept is most relevant?

• A. Market Segment
• B. Target Market
• C. Demographic Group
• D. Mass Market

Answer: (B)

Target market selection is about choosing the specific group a business designs its product and its marketing for. A premium product aimed at high‑income urban professionals is making a deliberate choice to focus on that audience and tailor the value proposition, price, distribution, and promotion to their needs and preferences. In this view, the high‑income urban professional group becomes the target market—the audience the company will actively pursue with its premium offering.

Market segmentation is the process of dividing the broader market into smaller groups; that group could be viewed as a segment, but targeting is the step where the company commits to pursuing that segment with a specific marketing mix. A demographic group describes characteristics like income or location, but it’s not the act of selecting who to target. A mass market aims at a broad audience, which clashes with a premium strategy.