A market profile is a summary of the essential characteristics that define a given market, used by companies to identify potential consumers and assess competition. It includes factors such as age, gender, income, and location to create an image of the ideal customer. The profiling approach can also be applied to assessing competition in a given market.
Also known as a marketing profile, a market profile is a summary of the essential characteristics that define a given market. While the scope of this type of profile will vary somewhat based on the type of market being considered, there is a lot of essential information that is usually included. Market profiles are used by companies to identify specific groups of potential consumers, assess their status compared to other companies offering similar goods and services, or to assess the feasibility of launching a new product in a specific location.
One of the key factors in any market profile is creating a functional image of the ideal customer. This usually includes defining the age and gender of individuals most likely to be attracted to a particular product. Sometimes factors such as ethnic origin, race, geographic location, religious orientation or preference can also play a role in developing this type of market profile. It is not uncommon for income level to also be included when creating this type of profile.
For example, a company that produces gardening equipment might conclude that a customer most likely to purchase a particular gardening implement from its product line will be a man over fifty. This ideal consumer will also live in a suburban area, have a middle class income, and enjoy gardening as a weekend project. If this is the consumer indicated by the survey who is most likely to buy the implement, the marketing campaign will be designed with the aim of attracting customers who meet this market profile.
A market profile does not have to be customer-focused. The profiling approach can also be applied to assessing competition in a given market. Here, the idea is to determine whether a competitor’s product line is likely to appeal to the same general types of consumers. In this case, the analysis will determine which of the two companies is positioned to capture the most interested consumer groups, usually by looking at retail patterns over the last few years. Here, the idea is to strengthen the presence of a given company within an industry and allow it to capture at least a larger market share.
The market profile process can be an assessment of the overall market, involving both elements of typical buyer information along with typical competitor information. The idea is to take this data, relate it to general economic information, and determine how to go about promoting the company’s products in the current economic climate. With this approach, consumer spending projections take into account factors such as the current price of goods and services, the rate of production among major competitors in the market, and whether the overall economy is currently in a state of inflation or recession. Such a profile facilitates the shaping of future production to meet anticipated demand and thus maximizes the potential for the business to remain profitable.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
