Given below are two statements :
Statement I: Dividing the market in small niches is known as targeting.
Statement II: Segmentation and targeting are essential components of understanding the market and tap it effectively.
In the light of the above statements, choose the correct answer from the options given below:

Statement I: Dividing the market into small niches is not targeting. Instead, dividing the market into small niches is segmentation. Targeting comes after segmentation, where the marketer selects the specific segments to focus on. So, Statement I is false.

Statement II: Segmentation and targeting are indeed essential components of understanding and tapping the market effectively. Segmentation helps in identifying different customer groups, while targeting helps in selecting the right group to focus marketing efforts on. Statement II is true.