Question

What does the following definition describe? dividing up your audience into groups of who they are, and what they like, with a goal of identifying a group most interested in your product/service?

Answer 1

This definition refers to market segmentation.

Market segmentation is the process of dividing a broad business market, consisting of existing and potential customers into segments or sub-groups of consumers based on some kind of shared characteristics. In order to do so the researchers look for common characteristics like shared needs, similar lifestyles, similar demographic profiles and common interests of consumers. Segmentation is done to identify the high yield segments or the segments which are the most profitable so that they can be given special attention.