Once the Market Segmentation (Target Market), has been established, the next part of the Marketing Strategy in the Marketing Plan section of the Business Plan, is to determine whether or not the size of this market will be beneficial to your business.
Is this target market beneficial to your business?
Once you have identified your target market you need to ask yourself whether or not they can benefit your business. Is it a sustainable target market and most importantly is it a profitable target market.
Ask yourself:
- Can you readily and easily identify these potential customers?
- Can you reach these customers?
- Also, what is the size of this market?
Market Size:
Decide whether or not your market is too broad or too narrow? If it is broad, do you have the resources to manage such a large market? If it is a narrow segment, are you able to sustain your business with this market?
Make sure that you choose a market that you can manage and that will ultimately achieve your business goals.
Reaching the customers:
Once you have identified your market segments you then need to think about how you can communicate with them.
Are you able to reach these people through advertising and promotion and also are you able to get the product or service to them? Start to think how this can be done.
Remember to tie in all you have learnt about your customers, what benefits they are seeking, what features they are looking for.
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Market Segmentation
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