 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 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.