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Part 3 The Target Market in Your Business Plan

Functional
Clustering of Products

Target Market

With a solution to the problem in place as discussed in part two, the next most important element to consider is the market to focus on.

Ideally, every business needs an area of focus as this determines the viability of its idea. Every business tends to have the specific customers who it chooses to focus on and those are the target customers.

In this third part, the business project highlights on the best way to determine ones customers who form the target market in a business plan.

Properly identifying the target market saves on many elements such as the resources, the time it takes for it to gain acceptance to its customers and ultimately to be the market leader before any other entrants take advantage of the market opportunity.

a.      Market Size & Segments:

i. Describe your target market. In decision the target customer, one has to determine who their ideal customer are? Who are the people or companies who suffer from the problem that you are solving? How do they break down into segments that is, recognizable customer types with similar demographics, needs, and expectations? How many potential customers does your research suggest there are in each segment? Every business wants a segment in the market where it can best maximize on its sales or at least to gain audience

ii. A good example of a way of identifying the target market would to consider that you run a downtown fitness center. In getting to know your market, you might find three common types of customers: urban professionals who want to exercise on their lunch breaks, retired business people who want to both stay fit and enjoy the social amenities of a regular meeting place, and students from the nearby college.

Everything you do what services you offer, what prices you charge, whether you offer laundry services or not should be driven by your understanding of the needs of your target customers.

Each of the three customers may have the specific elements that they would like an organization to focus on.

The best business model is one that addresses all the problems at a go delivering convenience. For example, a computer company as we witnessed in the boom around 1980 to 2000 saw computer companies such as Microsoft developing computers and the respective software to facilitate this. A computer would be useless unless it played a specific function and with the required software.

the target market Just as other parts is highlighted in the executive summary segment of the business plan

Part 3 The Target Market in Your Business Plan

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