Lesson 4 1 Identify Your Market Goals Identify

Lesson 4. 1 Identify Your Market Goals • Identify a target market by analyzing the needs of customers. • Explain how market segmentation can help an entrepreneur analyze a target market.

Terms • • target market segments customer profile demographics psychographics use-based data geographic data

Target Market • Customers are your most important asset. • target market – the individuals or companies that are interested in a particular product or service

Identify Your Target Market • Consider the following information regarding your customers: – – – – individuals or companies? age and income? industries customers are in? needs and wants my product will satisfy? number of potential customers? competitive environment? pricing of product or service? what is unique about my offering?

Market Segments • market segments – groups of customers within a large market who share common characteristics • Most products and services appeal to a small portion of the population. – Segmentation helps you serve your niche efficiently.

Customer Profile • customer profile – a description of the characteristics of the person or company that is likely to purchase a product or service

n demographics – data that describes a group of people in terms of • • age marital status family size ethnicity gender profession education income

n psychographics – data that describe a group of people in terms of • • tastes opinions personality traits lifestyle habits

n use-based data – data that helps you determine how often potential customers use a particular service • geographic data – data that helps you determine • where your potential customers live • how far customers will travel to do business with you