The target market is a major section of the marketing plan. In this section you will describe exactly who your customers are. You can classify them by attributes such as when they buy, where they buy, how much they buy, and how frequently they buy. The point of this section is to help you focus or concentrate your resources on the type of people who will give you the best return for your efforts.
There is no point in trying to market your product to everyone. Many are not interested in what you are trying to sell and you will waste time and resources in marketing to them. By targeting specific groups of individuals, you will increase your odds of being successful.
Knowing your customers is almost as important as knowing your own company (and yourself).
Here is a listing of some of the main issues you should try to include:
- Identify your customers – include demographics and lifestyle information.
- Identify location of customers (local, regional, national or international).
- Identify factors in customer selection of the products/services and brands, including remittances.
- Identify the size of each market.
- Identify market trends, including information about market studies and test marketing.
- List factors that affect purchasing such as: 1) seasons, 2) obsolescence, 3) tax considerations, 4) price, availability, service, 5) emotional considerations, and 6) all other factors.
- Will promotional activities be concentrated in specific markets?