Demographic segmentation is a marketing strategy that divides a target market into smaller groups based on specific characteristics. These characteristics can include age, gender, income, education level, and family size. By understanding these demographics, businesses can tailor their products and marketing efforts to meet the needs of different consumer segments. This approach allows companies to identify and focus on their most valuable customers. For example, a brand like Nike may target younger consumers with trendy athletic wear, while a company like AARP focuses on services for older adults. This targeted marketing can lead to more effective campaigns and increased customer satisfaction.