Who Is Your Market?
You first must know exactly who your market is. Perhaps it is defined by geographic location, socioeconomic or ethnic factors, age, or sex, or any of a thousand other conditions.

Whatever they are, make sure you identify them.

Target Marketing
Target specific segments of your market to reach people who will ultimately buy your product and to reduce the competition you may face. One way to do this is to simply list all of the important characteristics and then, by using census data or other information, find out to what extent these characteristics are present in different areas.

Your market may naturally be segmented by price, quality, region, customer age, income, buying behavior, industry or anything else. Typically, price and quality are the most evident, followed by product use and the benefits consumers get from using the product.

Some segments will be very distinct, and some will be more subtle. Some may even cross over into more than one segment, or move from one to the next. Remember to address each segment when you are planning your marketing activities.

Finding your niche is often the key to success.

Measure Your Market
Your target market, the market you have selected to serve, must be measured. Having too few customers puts you out of business. Although your business will receive cash from sales, loan proceeds, sale of fixed assets, and proceeds of new investment, it will ultimately rely on sales as the main source of money, because, if there are no sales, there is no business.

You can obtain information about the size of your market from the Internet, your Chamber of Commerce, trade publications, marketing consultants, businesspersons, schools, and colleges. A good source of information is the Federal Census Report which includes your area.

It is best to get help in assessing the market from such sources rather than trying to guess by watching passing traffic and hoping for the best. Good marketing strategy must be planned, and it must be based on good information.

When you have a feeling for your market, the following questions can then be raised:

8. How will you attract and keep this market?

9. How can you gradually expand your market?

Numbers 8 & 9 elaborate on number 6, which should be part of your basic company policy. They generate ideas such as: how and where to advertise; your location; and the attractiveness and comfort of your store for the
clientele you hope to acquire.

Pricing Your Product or Service >>