Target markets examples in business plan
Where: Where do they live? Once analysed, you can differentiate the profitable segment from the non-profitable ones.
These factors include geography, relationship to the product, demographics, socioeconomics, behavior, and psychology. It will help you define your market and understand your key market segments. How might your target market be affected by demographic shifts? As Palo Alto Software, the host of Bplans, grew up and grew our business plan software, its founder that would be me was more comfortable with the do-it-yourself entrepreneur and business owner than the high-end consultants, so we ended up targeting the do-it-yourselfers in business. The next post in this series is about the analysis of the competition for the target-market. This strategy was used in the recent U. You can follow the following steps to define a target market for your business. Where: Where do they live? How might your target market be affected by larger socioeconomic trends?
Not Many Competitors: Having some competitors might be beneficial for your company. Target Market vs Target Audience Target market and target audience are similar terms which are used to denote market segments which the business wants to target to, but both the terms have different practical implications.
When companies are marketing electronic products, such as televisions or video game consoles, they must take into account how their potential customers want to spend their free time, in order to focus their advertising on people who are very interested in entertainment and leisure.
These cards usually are distributed with new products.
Some provinces and territories maintain up-to-date websites with official statistics and publications: Alberta Community Profiles : Profiles of Alberta communities including demographics and other statistics. Show how your company will impact those purchase habits.
Target market strategy
For example, a small hardware company may conduct phone surveys among customers in its various markets. Target Market Analysis The target market analysis starts with yourself. In contrast, in a colder climate coats would be marketed and sold all year round whereas swimwear would be highly seasonal during the holiday period. Some other groups in Apple also focused on government as a specific market segment. Target Market Examples As you can probably imagine, target markets for some items and products are relatively easy to identify. These target customers would most likely live in well-to-do areas of the country and world, so advertisements for the products would likely be concentrated in wealthy and cosmopolitan areas. What value does this product bring? Alcohol companies provide a great example of companies who want to appeal to a wide variety of target markets. How might your target market be affected by government policies e. Show how your company will impact those purchase habits. Where do they use the product? Boat and swimwear retailers focus on those who enjoy spending their leisure time in the water.
In the example below, the market is split into four main segments both in terms of number of customers and percentage of the total target market. They segmented the market in a way that defined a range of products as "oral satisfacters" their term, not mine.
Target market analysis example
For instance, if you plan to sell computer-related services, ask questions relating to the number of computing devices your prospective customers own. Will you meet the needs of a specific industry or several industries? Lifestyle preferences often pertain to people's tastes, hobbies or interests. If you are catering to the consumer market, narrow your potential customer base to a defined demographic group. It is a particularly important marketing tool when the business is a multinational, worldwide business, but is also used by businesses to split their markets into region, county, state, city, neighborhood, or postal code. Target groups can include people who live in a particular region of the world, or a particular climate. Target markets organized based on these factors take into account the age, gender, jobs, level of education, and personal income and wealth. In a basic sense, Kindles were originally marketed to young, smart, well-to-do consumers, because they were most likely to be interested in books and new technology, and also able to afford an e-reader.
Some companies market the same product to different segments differently, while some manufacture different product lines to cater to different market segments. But don't stop here.
The segmentation helped the marketers understand their real competition, which wasn't just other candy bars, but also other products targeting the same customer money. You and other readers of your business plan will need to know the sources of the statistics or opinions that you've gathered from others.
Target market description
So, somebody who loves fine food, tastefully prepared and served, is probably more comfortable with an upscale target market than with price-sensitive young families. Nationality Geographic Segmentation Geographic segmentation is the process of splitting up a sales market of a business based on the geographical location of the customers. He complained that he kept getting the country music version, but he liked the blues version better. Given the current level of competition and limitation of resources, it is not viable to target everyone in the market and wait for the people to like your product. Target markets organized based on these factors take into account the age, gender, jobs, level of education, and personal income and wealth. These people are the consumers who are most likely to use the company's products and services. Target Market Examples As you can probably imagine, target markets for some items and products are relatively easy to identify.
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