HOW TO IDENTIFY A TARGET MARKET AND

PREPARE A CUSTOMER PROFILE

WEEK 008
Market (Locality/Town)
TYPES OF MARKET
Resellers buy finished products and resell them to
their customers for the purpose of making a
profit.Resellers do not modify the produts they buy.
IDENTIFYING YOUR MARKET
IDENTIFY WHY A CUSTOMER WOULD WANT TO
BUY YOUR PRODUCT/SERVICE

THE FIRST STEP IN IDENTIFYING YOUR TARGET MARKET UNDERSTANDS

WHAT YOUR PRODUCTS/SERVICES HAVE TO OFFER TO A GROUP OF
PEOPLE OR BUSINESSES

MARKET SEGMENT

THE PROCESS OF DEFINING AND SUBDIVIDING A LARGE HOMOGENOUS

MARKET INTO CLEARLY IDENTIFIABLE SEGMENTS HAVING SIMILAR NEEDS,
WANTS, OR DEMAND CHARACTERISTICS. ITS OBJECTIVE IS TO DESIGN A
MARKETING MIX THAT PRECISELY MATCHES THE EXPECTATIONS OF
CUSTOMERS IN THE TARGETED SEGMENT
 THE FOUR BASIC MARKET SEGMENTATION-
STRATEGIES ARE BASED ON

GEOGRAPHIC

DEMOGRAPHIC

PSYCHOGRAPHIC

BEHAVIORISTIC
RESEARCH YOUR MARKET

SOME OR ALL THESE REFERENCE TOOLS CAN BE FOUND IN THE

REFERENCE COLLECTION OF ANY PUBLIC LIBRARY OR COLLEGE LIBRARY
THAT SUPPORTS LOCAL BUSINESS OR A BUSINESS SCHOOL.
CORE CONCEPTS OF A TARGET
MARKET
 CONCRETE

 SIZE AND GROWTH POTENTIAL

 COMPETITIVE ADVANTAGES

 PROFITABILITY
PLAYERS IN MARKETING
CUSTOMERS

MAJOR CUSTOMERS- IT IS VERY COMMON FOR MOST SALES TO BE MADE

TO A RELATIVELY SMALL SET OF BIG CUSTOMERS. THESE ALWAYS NEED
CAREFUL ATTENTION AND MAY HAVE ACCOUNT/RELATIONSHIP
MANAGERS ASSIGNED TO THEM. A PROBLEM IS THAT BIG CUSTOMERS
MAY ALSO DEMAND BIG DISCOUNTS AND SPECIAL ATTENTION

MINOR CUSTOMERS- MINOR CUSTOMERS BUY LESS, BUT ARE USEFUL AS

IN AGGREGATE THEY MAY BUY QUITE A LOT. THE ONLY TIME MINOR
CUSTOMERS ARE UNDESIRABLE IS WHEN SERVING THEM COSTS MORE
THAN THE PROFIT GAINED FROM THEM. THIS CAN HAPPEN WHEN THEY
ARE ANGERED OR WHEN THEY TRY TO GAIN AN UNFAIR ATTENTION FOR
THEIR SMALLER PAYMENT.
SUPPLIERS SUPPLIERS
MAY SELL DIRECTLY INTO THE MARKET, FOR EXAMPLE SELLING SPARE
PARTS, BUT LARGELY THEY NEED TO BE KEPT ALIGNED TO YOUR
STRATEGY.
COMPLEMENTORS
COMPLEMENTORS ARE THOSE WHO SELL NON-COMPETING PRODUCTS
AND WHICH GENERALLY HELP YOUR SALES. FOR EXAMPLE IN A ROCK
MUSICAL INSTRUMENT MARKET, DRUM AND GUITAR MANUFACTURERS
ARE COMPLEMENTORS TO ONE ANOTHER
COMPETITORS
COMPETITORS ARE THOSE WHO HAVE PRODUCTS AND SERVICES SIMILAR
TO YOU AND WHERE CUSTOMERS WHO ARE BUYING SOMETHING WILL
COMPARE YOUR OFFERINGS AND PRICES DIRECTLY, WEIGHING ONE UP
AGAINST THE OTHER.
SUBSTITUTORS
SUBSTITUTORS ARE LIKE COMPETITORS BUT THEIR PRODUCTS ARE NOT
THE SAME.
REGULATORS
IT CAN BE AN IMPORTANT PART OF MARKETING TO DEMONSTRATE
CONFORMANCE TO REGULATIONS. DISPLAYING SAFETY BADGES,
SHOWING ECOLOGICAL AWARDS, AND SO ON CAN HELP CONVINCE
CUSTOMERS OF THE QUALITY OF THE PRODUCT AND THE INTEGRITY OF
THE FIRM.
INFLUENCERS
MARKETERS NEED TO BE CAREFUL WITH INFLUENCERS WHO CAN CREATE
BAD PUBLICITY THROUGH DEMONSTRATIONS AND LEAKING INFORMATION
TO THE PRESS. INFLUENCERS CAN BE HELPFUL IF YOU LISTEN TO THEM
AND TAKE THEIR CONCERNS SERIOUSLY.
CONCEPTS OF MARKETING
 THERE ARE FIVE DIFFERENT CONCEPTS OF
MARKETING

PRODUCTION CONCEPT
PRODUCT CONCEPT
SELLING CONCEPT
MARKETING CONCEPT
SOCIETAL MARKETING CONCEPT