Presentation on theme: " A target market is a term for the individuals or companies that are interested in a product or service AND are willing to pay for it. It is short-sighted."— Presentation transcript:
A target market is a term for the individuals or companies that are interested in a product or service AND are willing to pay for it. It is short-sighted for a business to open without properly identifying their target market. It’s like setting a goal that isn’t specific How are you going to make any money, when you don’t really know who to EXPECT THE MONEY TO COME FROM?
Customers are the people who buy the products and services that businesses offer. Customers are your most important asset. If you understand your customer’s wants/needs you will identify business opportunities If you identify business opportunities, you’ll be better at giving your customers what they need and want.
It helps to know your customers insofar as their demographics and psychographics Demographics are data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education, and income Psychographics are data that describe a group of people in terms of their tastes, opinions, personality traits and lifestyle habits
If you want to understand your customer better, then use the power of demographics and psychographics in order to CREATE a customer for yourself. Ask identifying questions that will allow you to have a better idea of who your customers really are.
Start by thinking very specifically about what your product/service is…. Now, answer these questions (WRITE THEM DOWN) 1. How old is my customer? 2. How much money does my customer make a year? 3. Where does my customer live? 4. What does my customer do for work? 5. What does my customer do for leisure?
7. What is my customer’s need that I KNOW I am fulfilling (BE OVERLY SPECIFIC) 8. Where do my customers go to currently fulfill this need? 9. What price will they pay for this need/service? 10. What does my customer wish was being done to satisfy this need that nobody is doing? 11. What does my customer look like?
Market Segments Extremely specific groups of customers that share common characteristics For example: let’s look at a more simple market segment. There exists 18-35 year old men who like to go out to eat They prefer sit down restaurants They prefer to eat Italian They prefer to only spend $5-20 for their meal Doesn’t like to be bothered by kids in the restaurant SO WHERE DOES THIS GUY GO TO EAT?
You need to understand your COMPETITION as well. Direct Competition Competition from a business that makes most of its money selling the same or similar products or services as another business. Indirect Competition Competition by a business that makes only a small amount of money selling the same or similar products or services as another business
For each of the following, give me one example of a DIRECT Competitor and one example of an INDIRECT Competitor
SWOT Analysis S trengths W eaknesses O pportunities T hreats
What are your company’s Strengths? What do the owners do better and/or have more of than anyone else in your business field? THIS IS YOU. Even as a high-school student, what is it that you do or know that you think you have a better grasp on than your competitors would?
What are your company’s Weaknesses? What do the owner’s do worse and/or have less of than anyone else in your business field? Be honest with your self. What do you think you need to learn more about or get better at in order to be a true competitor in this market?
What are your company’s Opportunities? Describe your target market/customer profile. Explain how this group will be motivated to shop with your business. Go think back to what we discussed previously: What is my customer’s need that I KNOW I am fulfilling (BE OVERLY SPECIFIC) What does my customer wish was being done to satisfy this need that nobody is doing? WHAT CAN YOU DO DIFFERENTLY THAT CUSTOMERS WOULD APPRECIATE?
Who/What are your company’s Threats? Put together a comprehensive competitor analysis like on page 145.