Market research profile is a detailed analysis and evaluation of a company’s target market. It provides insights into customer demographics, needs, behaviors, and trends. Market research helps companies understand their customers, make informed business decisions, and develop effective marketing strategies.
Why conduct market research profile?
There are several key reasons companies develop market research profiles:
- Identify target customers – Market research helps define target audience segments by gathering data on customer demographics like age, gender, location, income level, education, etc.
- Understand customer needs – It provides insights into what motivates customers to purchase, their pain points, and desired solutions.
- Guide marketing efforts – The data and insights help companies effectively position their products, set optimal pricing, choose advertising channels, and craft messaging that resonates with customers.
- Inform product development – Customer feedback helps companies identify opportunities for new products and features current customers would value.
- Track market trends – Ongoing market research detects shifts in the market like changes in demand, emerging competitors, fluctuating prices, etc.
- Reduce risk – Market profiles allow companies to test concepts before bringing products to market and avoid costly mistakes.
- Identify new market opportunities – The data can reveal promising customer segments or highlight changing behaviors companies can capitalize on.
What does a market research profile include?
A complete market research profile covers a wide range of data and information about the target market. Key elements include:
Target customer description
- Demographics – age, gender, ethnicity, education, household income, marital/family status, occupation, etc.
- Psychographics – attitudes, interests, values, lifestyles, behaviors, etc.
- Geographic location
- Personas – detailed descriptions of fictional example customers representing segments
Market size and trends
- Total number of potential customers in the market
- Growth rate and forecasts
- Historical shifts and trends
- Seasonal variations in demand
- External factors influencing the market like economic conditions, industry changes, etc.
Market needs and challenges
- Customer pain points
- Unmet needs
- Desired benefits and solutions
- Decision-making motivations and process
- Potential objections and barriers to purchase
Market segments
- Division of market into segments based on demographics, behaviors, needs, etc.
- Description, size, and characteristics of each identifiable segment
- Current targeting strategy across segments
Purchasing factors
- Drivers of purchase decisions
- Key influencers in decision process
- Preferred purchasing channels – online, in-store, etc.
- Media consumed and touchpoints reached during buyer journey
Competitive analysis
- Key competitors and market share
- Competitor offerings, pricing, promotions, etc.
- Competitor strengths and weaknesses
- Opportunities for differentiation and competitive advantage
Brand positioning
- Analysis of company’s current brand identity, positioning, and reputation
- Customer awareness, perceptions, and sentiment towards brand
- Areas of brand differentiation vs. competitors
Methods for developing market research profile
Companies employ both primary and secondary research methods to build a detailed picture of the target market. Useful techniques include:
Secondary research
- Desk research of existing data – industry reports, government statistics, demographics data, economic trends, etc.
- Competitor analysis – evaluating competitor websites, products, brochures, social media, reviews, etc.
- Research published case studies and success stories relevant to the market
Primary research
- Quantitative surveys – structured questionnaires collecting numerical data
- Qualitative interviews – in-depth, one-on-one discussions
- Focus groups – guided discussion with a small group of customers
- Ethnographic research – on-site observation of how customers behave
- Customer advisory panels – ongoing forums for providing feedback
Market profiling tools and templates
A wide variety of tools and templates can facilitate effective market profiling, such as:
- Surveying software – SurveyMonkey, Qualtrics, Google Forms, etc.
- Data visualization – charts, graphs, and maps to analyze data
- Statistical analysis tools – Excel, SPSS, SAS, etc.
- CRM systems – capture and segment customer data
- Social media monitoring – track brand mentions, reviews, complaints
- prototyping templates- demand type, user personas, customer value
Typical market profiling timeline
Developing an in-depth market research profile requires a significant time investment. The typical project timeline is:
- Planning – 1-2 weeks
- Secondary research – 2-3 weeks
- Primary research preparation – 1-2 weeks
- Data collection – 2-4 weeks
- Data analysis – 1-2 weeks
- Reporting and presentation – 1-2 weeks
In total, companies should expect the entire process to take 8-12 weeks. However, the upfront time spent truly understanding the target audience pays long-term dividends for marketing success.
Benefits of thorough market profiling
Investing the time in comprehensive market research profiling provides many business benefits, including:
- Sharpened strategic focus – targets resources on best market opportunities
- Risk reduction – minimizes missteps from poor assumptions
- Increased marketing efficiency – optimizes spending and channel selection
- Improved customer targeting – refines ideal customer definition
- Enhanced customer understanding – creates deeper connection with customers
- Differentiated positioning – reveals areas for unique positioning
- New product development – guides additions of value-adding features
- Measurable objectives – data provides benchmarks to track progress
Market profile example
Below is an example extract from a market profile for a fictional fast casual restaurant brand looking to expand in the Southwest United States:
Target Customer
Our ideal customers are health conscious millennial professionals aged 25-35 living an active lifestyle. The majority are college-educated with household incomes over $75,000. There is an equal gender split.
Market Size
The fast casual restaurant market in the Southwest US is estimated at $X billion and projected to grow at X% CAGR over the next 5 years.
Market Needs
- Quality ingredients – Customers want fresh, organic options with little processing
- Transparency – Detailed menu listings on sourcing, nutritional content, and preparation
- Customization – Ability to modify dishes to fit preferences and diets
- Convenience – Online/mobile ordering for takeout and delivery
- Lifestyle fit – Positioning aligned with target audience’s active, eco-conscious values
Purchasing Factors
The top factors driving purchase choice are:
- Taste – Flavor is most important driver
- Price – Seek quality without premium pricing
- Health – Emphasis on natural, nutritious ingredients
- Convenience – Easy online ordering and takeout
- Customer service – Friendly helpful staff provides positive experience
Competitive Analysis
Our main competitors are:
Competitor | Strengths | Weaknesses |
---|---|---|
Chipotle | Brand awareness, customized offerings | Higher pricing, food safety concerns |
Panera | Bread and bakery products, brand reputation | Less menu customization |
Noodles & Company | Variety of global noodle dishes | Carb heavy, less organic |
We differentiate through our fresh, organic ingredients and propriety healthy Mexican recipes not replicated by competitors. Our new mobile app for ordering puts us ahead on convenience.
Conclusion
Developing a detailed market research profile provides indispensable customer and competitive insights to guide strategic business decisions. The upfront investment in rigorous research pays off through more efficient marketing, higher conversion rates, and sustained competitive advantage from truly understanding target audience needs.