1. Analyze the Needs of Customers How Market Segmentation Can Help an Entrepreneur analyze a Target Market

2.  Don’t be so focused on your product/business ◦ Who are your main customers? ◦ Are they willing to buy your product?  Use Market Research!!!! ◦ Market research will tell you about your customers and their willingness to purchase your product. Target Market – the individuals or companies that are interested in a particular product or service and are willing and able to pay for it.

3. #1 Who is my potential Market? Are my customers individuals or companies?

4. #2 If my customers are individuals, how old are they? How much money do they earn? Where do they live? How do they spend their time and money?

5. #3 If my customers are companies, what industries are they in? Where are those industries located?

6. #4 What needs or wants will my product or service satisfy?

7. #5 How many potential customers live in the area in which I want to operate?

8. #6 What is the demand for my products or services?

9. #7 Where do these potential customers currently buy their products or services?

10. #8 What price are they willing to pay for my products or services?

11. #9 What can I do for my customers that other companies are not already doing for them?

12. Market Segments – groups of customers within a large market who share common characteristics.  Segmenting helps you develop products a product or service that will meet specific customer needs/wants.  Impossible to please everyone in the market.  Make decisions based on information gathered about market segments.  Data needs to be analyze correctly!

13.  People with common characteristics.  The more you learn about them, the better strategy you can develop. Customer Profile- a description of the characteristics of the person or company that is likely to purchase a product or service.

14. Demographics – Data that describe a group of people in terms of age, marital status, family size, ethnicity, gender, profession, education, and income. Psychographics – Data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits. Use-Based Data – Data that help you determine how often potential customers use a particular service. Geographic Data – Data that help you determine where your potential customers live and how far they will travel to do business with you.