Final answer:
Marketers at Fair Leigh Inc. are practicing market segmentation by focusing on Millennials, leveraging peer influence similar to celebrity endorsements, recognizing the demographic's purchasing power and the necessity to align with their values for retention and motivation.
Step-by-step explanation:
When marketers at Fair Leigh Inc. selected the Millennials as a target demographic for their new line of products, they were engaging in market segmentation. By doing so, they are adopting a strategy similar to celebrity endorsements, where influence is leveraged to drive consumer behavior. In this case, however, the influence comes from peers within the demographic, such as college students who work as brand ambassadors, as they are believed to have a significant impact on the purchasing decisions of their peers due to a heightened trust among individuals within the same social group.
The act of targeting millennials is driven by the recognition that they have significant purchasing power and are more likely to be influenced by peers, social media, and trends rather than traditional marketing channels. This understanding stems from research and historical trends indicating that younger demographics have a strong influence on not only their own spending but also that of their parents, as seen with the previous generations like the Baby Boomers.
Finally, retaining and motivating these younger consumers and potential employees requires strategies that align with their values, such as flexible work options, continuous learning opportunities, and a strong company brand and benefits package.