To create a new Audience, start by navigating to your Audiences menu.
From here:

• Select Create Audience
• Give your new Audience a relevant name.
• From the top Filters menu, go to the Select New Filter dropdown and select an option, e.g.:  Tags.
  
  • Set your Condition for this filter, e.g: Include.
  • Enter the Value you want to filter by, e.g: First Home Buyer
• If you would like to add more filters to further filter your list, select the plus button and repeat the process.
  • e.g: Preferences: Max Price, Condition: Is less than or equal to, Value: 800,000.
• You can restrict or expand any list with more than one filter by choosing Contacts that match ALL of these or ANY of these (filters), using the options above the filter set.
• Select Apply Filters to display the contacts in your database that match your filter set. *
  In this example we would see all contacts in the database tagged as first home buyers, and looking for a property under $800,000.
• Select Save Audience

* Admins will not see contacts as they do not have their own contacts.
Learn more about Managed Audiences.