1 : the marking of the limits or boundaries of something : the act, process, or result of demarcating something the demarcation of property lines.

What does demarcation mean in business?

demarcation | Business English

a line or rule that shows the limits of something or how things are divided, or the act of dividing something in a particular way: Careful market demarcation is an essential element of all strategic sales planning.

What does a line of demarcation indicate?

A line defining the boundary of a buffer zone or area of limitation. A line of demarcation may also be used to define the forward limits of disputing or belligerent forces after each phase of disengagement or withdrawal has been completed.