All of the following statements are true about Target Markets EXCEPT: The 4 types of target markets are: demographic, geographic, behavioral, and psychotic. The target market can inform a product's specifications, packaging, and distribution. A target market is a group of people that have been identified as the most likely potential customer for a product because of their shared characteristics, such as age, income, or lifestyle. A target market is the segmentation that the company has decided to market to, or target.

The incorrect statement is: **"The 4 types of target markets are: demographic, geographic, behavioral, and psychotic."** **Explanation:** The correct four types of target market segmentation are: 1. **Demographic:** Based on age, gender, income, education, etc. 2. **Geographic:** Based on location such as country, city, or neighborhood. 3. **Behavioral:** Based on behaviors like purchasing habits, brand loyalty, or product usage. 4. **Psychographic:** Based on lifestyle, values, attitudes, and personality. The term **"psychotic"** is incorrect in this context. It refers to a severe mental disorder and is not related to market segmentation. The appropriate term is **"psychographic."** All other statements provided about target markets are accurate: - **Product Specifications:** The target market indeed influences product design, packaging, and distribution strategies. - **Group Identification:** A target market is correctly defined as a group of potential customers with shared characteristics. - **Marketing Segmentation:** It refers to the specific segment a company chooses to focus its marketing efforts on. **Correct Answer:** The first statement incorrectly lists “psychotic” instead of “psychographic” as a target market type.