Definition of Market Segmentation
Demographic segmentation divides the market into small segments according to age, race, color, gender, religion, or income. Dividing markets into small demographic segments helps companies to use their resources more accurately to gain more regress results.
Demographic segmentation helps companies reducing the risk of running campaigns to the non-potential audience which helps in higher ROI. 85% of the new product launch in the USA are not able to generate the desired revenue from their products due to poor demographic segmentation.