Target Market - Parts of a Marketing Plan
What is a Target Market in a Marketing Plan?
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Table of ContentsTarget Market and the Marketing PlanCustomer SegmentsEach SegmentSize PriorityDescription (Characteristics)How the Product/Service Used Value Proposition:Requirements to Reach Each SegmentSustainabilityBoundaries
Target Market and the Marketing Plan
The target market section of the marketing plan contains the following elements.
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- Who are your primary customers?
- Can they be grouped into a segment?
- How much of the total company sales are they projected to occupy?
- Who are your secondary segments? Characteristics? Percentage of sales?
What is the size of each customer segment? (Give both the number of potential customers or market valuation.)
What is the priority level of the given segment?
- How much effort is needed to sell to the given customer segment?
- Is the product purchased regularly, on impulse, multiples at a time, etc.?
- How aware of the product is the average customer?
- Other factors that may affect purchasing habits:
- Gifts, Seasonal buying, emotional considerations, obsolete status, price (discounts & sales), status, prestige, etc.
What are the like characteristics or preferences that make them capable of grouping and targeting with marketing efforts?
- Types of Characteristic information:
- Demographic information
- Geographic Location
- Psychographic Characteristics
- Cultural or activity preferences
How the Product/Service Used
What is the type, frequency, intensity of use?
- What need or want is the product meeting for this customer segment?
- How does the customer perceive the product or service?
- How does the product or service compare to the customer perceptions. (i.e., If perceived a reliable, is it reliable? High quality? Easy to use?
- What is the value proposition that most appeals to the given customer segment? Examples:
- Customer Service
Requirements to Reach Each Segment
- Each segment may have special characteristics that change the method that is most effective to reach it.
- This may affect distribution channels as well as product features.
- What is the expectation of durability of customer demand in this segment? (E.g., Is the customer segment part of a trend?)
- Include any market trend reports to support this.
- What are the boundaries for the market(s) that your business can presently or intend to address?
- Break down by customer group and/or geography.