Demographic segmentation is a marketing strategy that divides a target market into distinct 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 clothing brand may create different lines for teenagers and adults, ensuring that each group receives relevant promotions and products. This targeted strategy can lead to increased customer satisfaction and loyalty.