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A market profile typically uses primary and secondary sources to answer key questions about a potential market. A profile is a picture or an outline. Information that makes up the social profiles of the people in your target market is called demographic information, and includes:
Age, usually given in a range (20-35 years)
- Marriage/partner status
- Location of household
- Family size and description
- Income, especially disposable income (money available to spend)
- Education level, usually to last level completed
- Interests, purchasing profile (what are consumers known to want?)
- Cultural, ethnic, racial background
A clothing manufacturer may consider a number of possible target markets–toddlers, athletes, grandparents (for grandchildren), teenagers, and tourists. A general profile of each of these possible markets will reveal which ones are more realistic, pose less risk, and which are more likely to show a profit. A test market survey of the most likely market groups, or those who buy for them, such as parents for babies and toddlers, can help you separate real target markets from unlikely possibilities. So basically we sub divide the market on the basis of geography, demographic, socio-economic, psychographic bases and the market conditions. The most common descriptions of the target audience are in terms of geographic, demographic and socioeconomic terms. If we take into consideration a simple product like a cycle, within this a normal cycle may be target at the rural community, whereas a sports cycle would focus more on young urban kids.
Insurance, you would ideally think would be for the older generation, but you have to start working now. So what do you think is the target audience for that product? Yes, they are, I mean the companies, focusing on the younger generation. Basically people in the age group of 30 to 45 years are the focused target group. Also the profiles of these people is that of senior executive, upwardly mobile and are concerned about their family about their future.