Target Market

1. Target Market Individuals or Companies Willing and Able to Buy Your Products or Services

2. Target Market • Your main customers • The customers you most want to attract • Estimate demand for your products by determining who is your target market • Helps you reach the people who are interested • By knowing the target market, you can give them exactly what they want

3. Who is Your Target Market? • Page 93 has a list of 8 questions you might use to help you decide • You should ask yourself these questions everyday of your business so you are able to respond to changes • Consumer likes and dislikes • Environmental • Competition • Community concerns

4. Target Market Activity • Use magazines • Clip out a picture of a product • Glue/tape the picture to a sheet of paper and answer the 8 questions (Page 93) about that product on the paper. • Make them colorful and easy to read because they may go on the wall  • We will share our target market analysis

5. Market Segments • Groups of customers within a larger market who share common characteristics • Dividing your target market into smaller groups can help you meet their needs better Example: Leisure market adventure travel, food for leisure, ages, family, couple, single, sightseeing, activities

6. Customer Profile • Description of the characteristics of the person or company that is likely to purchase the product or service • Demographic • Psychographic • Use-based data • Geographic

7. Demographic • Age • Marital Status • Family Size • Ethnicity • Gender • Profession • Education • Income 24, single, no children, Hispanic, male, Bachelor’s degree, $50,000 annually

8. Psychographic • Tastes • Opinions • Personality Traits • Lifestyle Habits Likes to live in a downtown setting, enjoys jazz music

9. Use-based Data • Data that helps you determine how often potential customers use a particular product or service Knowing how often a customer goes on a cruise if you are a travel agency.

10. Geographic • Where they live • How far they will travel to do business with you Most people are not willing to drive more than one mile for coffee

11. Marketing Strategy • Once you have analyzed your target market, you will be able to develop a marketing strategy • Identifies the customers you can serve better than your competitors • Helps you determine the size of your market • Direct design, prices, and promotion toward that group of customers

12. Market Research • System for collecting, recording, analyzing information about customers, competitors, goods, and services

13. Primary Data • Information collected for the very first time • Used to identify and understand the target market • Provides the most up-to-date and useful information • Collecting this data can be time consuming and expensive

14. Primary Data Sources • Survey- list of questions used to find demographic and psychographic information • Mail, phone, Internet, in person • Observation – watch potential customers • Count people in line at a competitor • Focus Group – in-depth interviews with small numbers of people • Led by a mediator and recorded • Retail store scanners

15. Secondary Data • Information found in already published sources • Population, family size, household income, economic trends, industry forecasts

16. Secondary Data Sources • Government and community organization publications • US Census Bureau • Small Business Administration • Chamber of Commerce • Industry Books • Trade magazines and journals • Newspaper articles and statistics

17. Web Log Data Mining • Process of analyzing data from different perspectives and summarizing it into useful information • Every click, every entry, every website, every choice you make online is being recorded • Converted to knowledge about patterns and trends Play Data Mining Video PC World Article Link

18. US Census BureauFinding Information Activity http://www.census.gov/

19. Rivalry among businesses to sell their goods and services Competition

20. Competition • Consumers choose products and services based on the value they think they will receive • Forces businesses to improve products, keep costs low, provide good customer service, and search for new ideas

21. Competitors • Companies offering similar or identical products and services to the same group of target customers • Customers have choices, you want them to choose YOUR business!

22. Types of Competition • Direct • Comes from a business that makes most of its money selling the same or similar products or services to the same market as other businesses • Internet search can show you direct competition • Chamber of Commerce has information on these competitors • Observation lets you see them in action

23. Types of Competition • Indirect • From a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses • It is more difficult to locate indirect competitors • Large department store retailer vs specialty shop

24. Strengths, Weaknesses, Opportunities, and Threats SWOT Analysis

25. Steps • Make a list of your competitors • Summarize products and prices offered by them • List their strengths and weaknesses • What do they do better or worse than anyone else? • Where are they located? • What are their facilities like? • Find out strategies and objectives of the competition…found in their annual report • Determine the strength of the market • Are there enough customers for your business • What is the industry forecast?