KnowThis.com

Examine in detail the company’s current target market(s). Obviously to do this section correctly takes a great deal of customer-focused research. (Length: 2-3 pages).

• Describe the target market approach:
  • What general strategy is used to reach targeted customers? Generally approaches include:
    • mass market – aim to sell to a large broad market
    • segmentation approach – aim to selectively target one (niche) or more markets
• Describe demographic/psychographic profile of the market:
  • Profile criteria may include:
    • gender, income, age, occupation, education, family life cycle, geographic region, lifestyle, attitudes, purchasing characteristics, etc.
• Describe the following characteristics of targeted customers:
  • Needs/benefits sought by market
  • Product usage
    • Consider answers to these questions related to customers using the product such as:
      • who is using the product?
      • why do they use the product?
      • when do they use the product?
      • how is the product used?
  • Product positioning
    • Evaluate how customers perceive the product in relation to competitor’s products or to other solutions they use to solve their problems
  • Attitudes
    • What is the target market’s attitude regarding the company’s product?
    • What is the target market’s attitude regarding the general product category?
      • i.e., exam the general attitude regarding how products from all companies serve the target market’s needs
• Describe the purchasing process:
  • How does the target market make their purchase?
    • What does the decision-making process involve?
    • What sources of information are sought?
    • What is a timeline for a purchase (e.g., impulse vs. extended decision-making)?
  • Who makes the purchase?
    • Does user purchase or is other party responsible (e.g., parent purchasing for children)?
  • Who or what may influence the purchase?
• Provide market size estimates:
  • Keep in mind these are estimates for the market not for a specific product
    • Provide size estimates for the potential market
      • What is the largest possible market if all buy?
    • Provide estimates of size for the current target market
      • What percent of the potential market actually purchased?
    • Provide estimates of future growth rates
      • At least through the timeframe for the plan (e.g., 1 year) but most likely longer (e.g., 3-5 year projections)

Comments (0)

Subscribe to this comment's feed