Each company selects a group of consumers, also known as their target markets, who they will try to capture and who they believe have a need for the company’s products or services. This group of individuals is generally characterized by demographics. Businesses must determine who their target markets are for each product or service they offer. There can be a number of target markets the company believes would be interested in purchasing the individual product or service. Answer the following questions in order to determine your target market: (There is an example of how Bakery A would follow these instructions)
- Define your products and services. (Cakes, cookies, pastries and bread)
- Characterize the various consumers you believe will want to purchase your product or service. (Homeowners, mothers, event planners – from big events to small children birthday parties, people on their way to work who need a quick breakfast or lunch, schools, religious organizations, other food stores, etc)
- Once you have gathered this list, separate these consumers into two to five groups in which each pool shares a distinct demographic characteristics. (1. Families; 2. Corporate Offices; 3. On-The-Go Individuals; 4. Other Retail Stores)
You have now defined your target markets. The next step is to determine how large these groups are within your reach and investigate the purchasing patterns of these individuals. Perform a thorough market research by searching the internet and utilizing your local library for various publications and statistical reports. It is also important to investigate your competition’s target markets, their patterns and behaviors.
Written by Shosh Pincus
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