Without a comprehensive demographic profile, what risk do managers face?

Managers rely on comprehensive demographic profiles to understand their target market, which informs various strategic decisions, including setting goals. A demographic profile provides insights into the characteristics, preferences, and behaviors of potential customers. Without this information, managers might inadvertently set goals that do not resonate with the actual market, leading to unrealistic expectations about performance or market engagement.

For instance, if a manager assumes that a local population has a high interest in luxury golf equipment based on anecdotal evidence, they might set sales targets that are unattainable without the demographic data to support such assumptions. This disconnect can result in a lack of alignment between marketing efforts, product offerings, and actual customer needs. Therefore, the absence of a demographic profile significantly increases the risk of setting unrealistic or inadvisable goals, ultimately impacting the success of the business strategy.