How To Identify A Target Market And Prepare A Customer Profile

What You Should Know Before Getting Started Define who your primary customer will be. The market should be measurable, sufficiently large and reachable. For Example, a printer's target of mid-sized firms with mid-size projects is not a measurable definition. However, a target market of firms within a radius of 20 miles, with annual revenues of $10 to $25 million and a need for four-color printing runs of approximately 5,000 pieces is a clear definition.

Define the Type Of Market Consumer Business Re-seller market (eg wholesalers)

Here are three steps to follow when identifying your market: Identify Why A Customer Would Want To Buy Your Product/Service Segment Your Overall Market Research Your Market

Step 1 - Identify Why A Customer Would Want To Buy Your Product/service Conduct a FEATURES & BENEFITS Analysis FEATURE: a toothpaste has a stain-removing formula, that's a feature. BENEFIT: The benefit to the customer, however, is whiter teeth. While features are valuable and can certainly enhance your product, benefits motivate people to buy. An Example is anti-lock brakes; they are features on a car, but the benefit to the consumer is safety.

PREPARE A FEATURES & BENEFITS TABLE In one column, list the features of your product/service. In the other, list the benefits each feature yields to the buyer. FEATURES BENEFITS

Step Two: Segment Your Overall Market GEOGRAPHIC DEMOGRAPHIC PYCHOGRAPHIC BEHAVIOURAL

Take a moment to decide which segmentation criteria will be most helpful to you in segmenting your target market: geographic_____ Yes_____No demographic_____Yes_____No psychographic____Yes_____No behavioristic_____Yes_____ NO

Next, identify what is important to your customers and rank High Medium Low Not At All Price Quality Brand Name Variety of services Salespeople Customer Service Special Offers Promotional Campaign Packaging Convenience of Use Convenience of Purchase Location Guarantees Store/Office Decor Payment Terms Other