Analysis: Current Target Market(s)

Examine in detail the organization’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? In most cases 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 organization’s product?
      • What is the target market’s attitude regarding the general product category?
        • i.e., examine the general attitudes regarding how products from all competitors 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 another party responsible (e.g., parent purchasing for children)?
    • Who or what may influence the purchase?
  5. Provide Market Size Estimates (Note: 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 time frame for the plan (e.g., 1 year) but most likely longer (e.g., 3-5 year projections)