Analysis: Current Target Market(s)

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).

1. 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

2. 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.

3. 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

4. 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?

5. 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)

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