T ARGET M ARKET A NALYSIS

M ARKET D RIVEN A “market driven” company is one that is concerned with the demands and trends of the marketplace rather than focusing on the characteristics of the product(s) or service(s). Market driven companies emphasize identifying the needs of the consumers. Once the consumer’s needs have been identified, the companies develop a Marketing Mix to address those needs. Yes, I know this exceeds the 7x7 rule!

D EFINITION OF M ARKET S EGMENTATION Process of dividing the total market in consistent/standardized groups. Each group consists of customers sharing a set of common characteristics These are different from those of the other groups.

D EFINITION OF A T ARGET M ARKET Consists of that segment or segments of the market to which the company chooses to market its product(s) or service(s).

T ARGET M ARKET C RITERIA ( FOUR PARTS ) (1) 1. Definable Common characteristics shared by a potential group of customers Differentiates them from other groups ** The market segment must be measurable in terms of both purchasing power and size**

T ARGET M ARKET C RITERIA (2) 2. Meaningful Characteristics that are meaningful in regards to the customers decision to purchase this product or service ** Marketers must be able to effectively promote their product and serve the market segment**

T ARGET M ARKET C RITERIA (3) 3. Sizeable Potential segment(s) that is large enough to make it profitable to do business with ** Market segments must be sufficiently large to be potentially profitable**

T ARGET M ARKET C RITERIA (4) 4. Reachable Potential segment(s) can be reached efficiently, effectively, and economically ** The number of segments must match the firm’s marketing capabilities**

C HARACTERISTICS /D EMOGRAPHICS Age Gender Marital Status Income Location Life Style Habits Spending Tendencies Psychological Concerns Trends