Segmenting a market refers to targeting a product to a specific target customer or industry, such as selling footwear to women or accounting software to hospitals. Market segmentation helps new companies develop a niche, or existing companies expand or diversify. Any marketing segmentation plan begins with detailed marketplace research. List the specific consumers or industries you want to research as targets for your product or service. Target consumers by demographics such as sex, age, income or parental status. Target industries by listing and ranking those most likely to use your product or service, or those that are already using similar products and services.
Business plan for a bakery: Cupcakes from heaven
Target Market | Sample Online Business Plan
Your product will not be of equal interest to all potential customers, as they do not all have the same needs and characteristics. This section of the business plan deals with the analysis of the target market into different groups of customers customer or target market segments each having distinct characteristics and needs from the product. The reason for customer segmentation is to allow a different marketing plan be identified for each customer segment, dealing with questions such as distribution channels, marketing activities, product usp, and price. The target market segmentation strategy depends on the business and the product, but generally segmentation falls into the following customer characteristics groups. Psychographic segmentation splits up a sales market of a business based on such things as the social class, lifestyle choices, personality traits, tastes, attitudes, and the opinions of its customers. Psychographic market segmentation examples include the promotion of products such as cars as these often reflect a customers lifestyle, and leisure activities.
Market Segmentation Matrix Template
Your digital presence is strategically created to continuously attract and convert the right audience. Strategically positioning your brand and enabling you to communicate a dependable, consistent, professional brand image in everything you do. Through the delivery of effective content and outstanding design, we set you apart from the competition. Market segmentation involves dividing a large homogenous market of potential customers into clearly identifiable segments. Customers are divided based on meeting certain criteria or having similar characteristics that lead to them having the same product needs.
Who will buy your product? Assumptions like this can lead to wrong decisions, wrong pricing, wrong marketing strategy — and ultimately, business failure. The most successful small businesses understand that only a limited number of people will buy their product or service. You, too, can build a better, stronger business, by identifying and serving a particular customer group — your target market. For example, in my business, an eco-tourism company, we made some specific decisions early in our market planning.