Filter design refers to the process of creating circuits that selectively allow certain frequencies to pass while attenuating others. This technique is crucial for signal processing, as it helps in eliminating unwanted noise and ensuring that only desired frequency components are transmitted or processed. Effective filter design not only involves determining the filter type but also requires an understanding of frequency response, which can be represented using Bode plots, and analyzing how different filter configurations can be interconnected in two-port networks for various applications.