Final answer:
Market segmentation is the process of dividing the consumer market into subgroups based on attributes like age, gender, and income. The U.S. Census Bureau provides data, such as Figure A6 and Table A4, to help businesses understand demographic trends over time and target specific consumer groups effectively.
Step-by-step explanation:
The practice you are referring to is known as market segmentation, which involves dividing a broad consumer or business market, normally consisting of existing and potential customers, into subgroups based on common attributes. In this case, the market is divided based on age, gender, and income. This approach allows businesses to target specific groups of consumers more effectively by understanding and addressing their specific needs, wants, and preferences.
For example, an age-based segmentation could focus on children, working age adults, or the elderly. Each group has different needs and spending habits, with products and marketing strategies tailored to each. Similarly, gender segmentation may influence product design, while income segmentation might affect pricing strategies.
The U.S. Census Bureau provides detailed demographic data that businesses can use for such segmentation. Their tracking of population age, for instance, offers insights into how demographic trends are evolving over time. The Figure A6 and Table A4 data indicate how age distributions have shifted from 1970, 2000 and projections for 2030, which could impact market segmentation strategies for businesses seeking to cater to various age groups.