What process involves dividing a market into distinct groups of buyers with different needs or behaviors?

Market segmentation is the process that involves dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors. This approach helps businesses to understand the specific requirements of each segment, allowing for more targeted marketing strategies. By breaking down a larger market into smaller, more manageable parts, companies can tailor their products, messaging, and service offerings to meet the unique demands of each group, ultimately improving customer satisfaction and increasing market efficiency.

In market segmentation, businesses typically analyze various factors such as demographics, psychographics, geographic location, and behavioral traits to identify and define these segments. This strategic approach enables organizations to focus their marketing efforts on specific groups rather than employing a one-size-fits-all strategy, which might not resonate with diverse consumer preferences.

The other processes mentioned, such as target marketing, distribution channels, and service marketing, are related concepts but do not specifically refer to the act of dividing the market itself. Target marketing focuses on selecting specific segments to pursue, while distribution channels pertain to the methods used to deliver products to consumers. Service marketing is directed towards marketing intangible services, rather than the segmentation of the market itself. Therefore, market segmentation is the most accurate term for the process described in the question.