What is Consumer Profile? Definition of Consumer Profile, Consumer Profile Meaning and Concept
The consumer profile includes a set of relevant characteristics that define and identify our target consumer.
In the first place, this profile is made based on a set of significant market variables and consumer needs. The purpose of creating a consumer profile is to be able to more precisely define the marketing strategy that will be used.
However, for this it is necessary to carry out a detailed and thorough market research, since this allows us to define groups or market segments. A market segment is a group of consumers that have homogeneous characteristics. Whether in terms of their behavior, motivations or needs.
Steps to make a consumer profile
The main steps or stages that must be followed to create a consumer profile are:
1. Identify groups of consumers with homogeneous characteristics
Usually, the characteristics used to define the consumer profile are usually very diverse, among the most used we find the following:
- demographic variables.
- Beliefs and attitudes.
There is no doubt that these variables are very important for a company to identify its target market. That is, to whom is your product directed and thus define the ideal profile according to the previously identified variables.
2. Perform market segmentation
Effectively, this step consists of dividing the market into groups of consumers that have similar characteristics. The similarities could be in how they expect to satisfy a need, how they behave to satisfy it, and the motives that drive them to act.
3. Make the selection of the market segment or segments
After structuring the different groups or segments, the company must choose which one or which ones to serve. The chosen segment must be the most attractive for the company, both because of its size and its purchasing power. Only then will it be a real business opportunity.
4. Focus on the segment(s)
Once the segment or segments that the company will serve have been chosen, it must focus all its efforts to specialize in serving the chosen group or groups in the most appropriate way.
5. Target the product to the segment
On the other hand, the product offered by the company, no matter if it is a good or a service, should be oriented to the chosen segment or segments. So that the product is better adapted to the needs and demands of the group of consumers to which it is directed.
Advantages of preparing a consumer profile
The most important advantages obtained by a company that prepares a consumer profile are:
1. Understand and know consumers better
In effect, the consumer profile establishes the specific characteristics of consumers, thus allowing companies to better understand their target market. In this way it is easier to understand how each group expects to satisfy a specific need, so that the products are adapted to meet their expectations.
2. Offer products that are really in demand
Likewise, this is very important for the company, because by adapting the products to the specific demands of each group, it is almost certain that they will be products that are actually in demand. Which generates enough amount of sales revenue.
3. Establish sales strategies according to the consumer profile
In addition, it allows the company to choose the sales strategy that best suits each group. This can occur according to the purchasing power of each group, by their frequency of purchase or by the price they are willing to pay.
4. Choose the channels that allow a better relationship with your consumers
Likewise, the communication and distribution channels chosen can be better adapted to each market segment if their preferences and interests are known. That way it is easier to maintain a better relationship with consumers.
5. Identify your competitors
Also, it will be easier to meet competitors who are trying to serve the same market segments. Because if the characteristics of consumers are known, it is easier to determine what type of products they are looking for in the market.
Disadvantages of focusing on the consumer profile
The most important disadvantages found by a company that focuses on serving groups of consumers with a certain profile are:
1. High production costs
Companies that strive to satisfy market segments with well-defined profiles face the disadvantage that their production costs may increase. Because they must create product propositions that may be unique to meet the needs of that particular group.
2. High marketing costs
Similarly when thinking of a marketing mix strategy that best responds to the requirements of each market segment. The company should personalize its marketing efforts to better respond to the interests and preferences of each group. Which can be more expensive.
Finally, it can be concluded by saying that knowing the consumer's profile can help the company to select its best strategies to focus in a superior way on each chosen market group or segment. For this reason, the product, price, communication and distribution can be better adjusted to the needs and requirements of each market segment.