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 sports equipment may focus on young adults who are interested in fitness, while a luxury brand might target affluent consumers seeking high-end products. This focused approach increases the chances of successful marketing and sales.