Target Markets
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Use customer surveys, random interviews, feedback sheets, and a lot of common sense. Know as much as you can about your existing customers. Research, Explore, Explain
For each of your market segments, the market analysis should explain as much as possible about the target customers included in that group. That normally includes the segment description, needs and requirements, distribution channels, competitive forces, communications, and keys to success. Each of these might be a topic in the plan:
- Segment Description
- You need a basic description of each target segment that includes attributes that characterize the segment, such as number of potential customers, annual growth rate, annual spending, and market value. The more detail you include, the better.
- Needs and Requirements
- The best marketing always focuses on customer needs. Why do they need your product or service? What is going to make them buy? Don't get trapped into merely marketing what you have, when you should be identifying a customer need and working toward fulfilling it.
- Distribution Channels
- What are the standard channels of distribution for this customer segment? How are they different from other segments? This is especially important for product businesses marketing through channels, but in all cases you need to know where your customers go to satisfy those needs and requirements you've identified.
- Competitive Forces
- Know the buying process for these target customers. What are the key decision factors? For example, some customers are more sensitive to price than others, some segments are more concerned about quality than price, and some care most about availability and convenience. In each case, those customers are willing to pay to realize the desired benefits.
- Communications
- Where do members of this segment go for information? What kinds of information will be most effective? Know where to send marketing communications, such as advertising and press releases, so that the right customers will find them. Know how to create those messages so that they will generate the right response.
- Keys to Success
- What factors make the most difference to success or failure with this market segment? Key factors will vary between segments, and may include price, value, availability, image, features, financing, upgrade or return policies, and customer service. List the most important three or four factors.
