Identify Your Market Entrepreneurship Unit 4, Lesson 2 Copyright © Texas Education Agency, All rights reserved 1

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Target Market Target Market – Individuals or companies that are interested in a particular product or service and willing and able to pay for it. Copyright © Texas Education Agency, All rights reserved 3

Identify Your Target Market Questions to Ask –Who are my customers; individuals or companies? –What are the demographics for my individual customers? –What industries are represented by company customers? 4 Copyright © Texas Education Agency, All Rights Reserved Copyright © Texas Education Agency, All rights reserved

Identify Your Target Market, Cont. Questions to Ask –How many potential customers live in the area in which I want to operate? –Where do these potential customers currently buy the products or services I want to sell them? –What price are these potential customers willing to pay for my products or services? –What can I do for my customers that other companies are not already doing for them? Copyright © Texas Education Agency, All rights reserved 5

Market Segments Groups of customers within a large market who share common characteristics –Identified by market research –Most products and services appeal only to a small portion of the population –Businesses make decisions based on the information gathered on market segments Copyright © Texas Education Agency, All rights reserved 6

Customer Profile Demographics - Age, marital status, family size, ethnicity, gender profession, education, income Psychographics - Individual tastes, opinions, lifestyle habits, and personality traits Copyright © Texas Education Agency, All rights reserved 7

Customer Profile, Cont. Geographic Data - Determines where your potential customers live and how far they will travel to do business with you Use-Based Data - How often potential customers use a particular service Copyright © Texas Education Agency, All rights reserved 8

Assignments The Customer Profile Assignment Interview a local business owner or manager to define the customer profile for their business. Ask the business owner or manager how they make decisions based upon the customer profile. Ask the business owner the eight questions for identifying the business’s target market. You will present your findings to class in the form of an oral presentation. The presentation will be evaluated using a related rubric. Geographic Data Assignment Select a business you would like to open and design a map of the area where you would like to locate the business (as a poster). You will then mark the areas on the map that represent the farthest distance you believe customers would be willing to travel to conduct business. Draw a circle that encompasses the points where customers live. The poster will be evaluated using a related rubric. Copyright © Texas Education Agency, All rights reserved 9

Assignments Name the Target Market for the New Product Assignment You will complete this project in a team of two or three students. Each team will look through magazines and newspapers for an advertisement of a new product. Based on the type of publication and material contained in the advertisement, you will answer the eight questions (about identifying a business’s target market) found in I. B. of the outline. Prepare a collage that includes the advertisement, shows the questions for the product, and provides the answers for the questions associated with the product. The collage will be evaluated using a related rubric Copyright © Texas Education Agency, All rights reserved 10