Target Market – Explained

[cite]

Next Article: Marketing Objectives and Goals

Back to: MARKETING

Target Market

The target market section of the marketing plan contains the following elements.

Customer Segments

• 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?

Each Segment

• Size What is the size of each customer segment? (Give both the number of potential customers or market valuation.)
• Priority 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.
• Description (Characteristics) 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?
• Value Proposition:
  • 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:
    • Price
    • Convenience
    • Quality
    • Reliability
    • 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.
• Sustainability
  • 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.

Boundaries

• 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.