Target demographics refer to specific groups of people that businesses aim to reach with their products or services. These groups are defined by various characteristics, such as age, gender, income level, education, and interests. Understanding target demographics helps companies tailor their marketing strategies to effectively engage potential customers. By analyzing target demographics, businesses can identify the needs and preferences of their audience. For example, a company selling children's toys may focus on parents aged 25-40, while a luxury car brand might target affluent individuals aged 30-55. This focused approach increases the likelihood of successful marketing and sales.