Defining the Customer Profile and Identifying Target Markets

The Buyer Profile

You probably already have a clear understanding of your buyer profile – a basic description of an eligible and qualified buyer. For example:

“Our ideal buyer earns between 100 and 120 percent of median income, has a credit score of at least 640, has $1,500 cash for closing costs and is willing to live in a transitional neighborhood in exchange for a very good deal on a high-quality home.”

This is good to know, but it only tells you the most basic characteristics of potential customers. Within this buyer profile are many different types of buyers with different needs and preferences. Rarely is it possible to capture the interest of all potential customers by offering them exactly the same product, described in exactly the same way.

To more efficiently connect with the particular interests and preferences of various potential customers, marketers “segment” the buyer profile into subgroups of people with like characteristics that allow the marketing team to customize messages, strategies and sometimes even products to each subgroup.