What is demographic segmentation?

Demographic segmentation involves dividing a market into distinct groups based on key demographic factors. These factors typically include age, gender, income level, education, and family size, among others. By categorizing the market this way, businesses can better understand and target specific audiences that share common characteristics, enabling them to tailor their marketing strategies and product offerings to meet the unique needs and preferences of those groups.

For instance, a company selling luxury goods may focus on high-income individuals, while a brand offering educational products might target parents with children in school. This approach helps organizations effectively allocate resources and create more personalized marketing efforts, ultimately driving conversions and customer loyalty.