target market

Identifying New Market Segments

Identifying and defining a new market segment can present many exciting opportunities. When done in a professional manner, it is possible even in today's crowded Business World, to find a new niche for your company's product or service. Well there are many steps in the process, there are a few steps that feature prominently at the top of the list of priorities. The first step is to come to terms with defining your target market. You can go into as much or as little detail as you like when defining a target market. The more detail you provide, the better the plan turns out. Key identifiers may include geographical location, demographics, and even cultural or religious beliefs. The more confident you are about your segment definition, the better.

Once phase 1 is completed, it's helpful to go a little deeper. Success lies within the details, which can be ironed out by asking a few key questions. Arguably the most important question of all is whether or not the segment you have defined is large enough to support your business' product or service. This will help you get an idea of whether or not this segment will fit in with your company's business model.

The third step involves taking an even closer look at your existing data. Many types of data will assist you in your entry into a new market segment, such as the current purchasing habits and patterns within your desired market. The key is to focus on gathering as much information as possible.

Following these steps doesn't in itself guarantee you success, but will go a long way in helping you to bring it about for yourself. When in doubt, do more research and don't be afraid to ask questions.

Market Analysis: Understanding your Customers

In order for any business to succeed, an understanding of customers' wants and needs is vital. It is of the utmost importance to gain an understanding of your market long before you take a serious financial plunge. A properly structured market analysis will provide you with all the information needed to make smart choices further down the line. Without this solid foundation, any business may struggle to stay afloat, let alone play in the "big leagues". Consumer research is generally the best starting point for market analysis. In order to provide customers with a product or service that they truly need, you need to understand their behaviour a little better. Find out what makes your potential customers tick, and then find out how your product will be able to fulfill these needs. Open up the channels of communication, do a survey or two, and spend some time figuring out how you can gain the edge on your competitors. Do some trend-spotting, and zone in on any gaps in the market that your company may be able to fill.

Decide on your target market and then build the rest of your business plan around this focus. Play to your strengths.

Market Analysis: Step One in Compiling your Business Plan

Conducting a market analysis should be the first step in compiling a business plan. Whether you are starting up a new business or whether you are attempting to spice up your existing company, your market analysis should be refreshed once a year. Quite obviously, markets change. That is the nature of human existence. Wants and needs are ever-growing, constantly changing, and (with the evolution of technology) becoming more and more complex. In doing your market analysis, what you should be looking at is your potential market rather than your existing client base. You already have your current clients in your back pocket. You know what keeps them happy. What you need is access to a wider client base. You need to find a way to not only dip your toes into this pool of untapped customers, but to swim with the big fish and rise to the top of the food chain.

Consider your favourite restaurant. Its client base includes not only regular patrons, but pretty much anyone within easy travelling distance. If the establishment is a specialty restaurant, their targeted customers will include anyone with an interest in that specific cuisine. Essentially, that is how market analysis works. You need to find a way to cast a wider net to bring in the customers you do not yet have instead of being complacent about the ones who do make use of your services on a regular basis. Success depends on your ability to adapt and survive in a world that is getting bigger by the day.