It may be beneficial to rank your prospects based on the following classifications. Status in the industry You might want to target businesses that are the technology leader or revenue leader or employee satisfaction leader, etc.
Future potential A good example is how Apple Computer supplied products to schools at all levels to condition students graduating into the marketplace.
Often are on social trend bandwagons so react positively to offerings that address these needs.
What appeals to a year-old Asian-American art history major may be completely different from what appeals to a year-old black attorney. Competition The aim of this section is to give a fair view of who you are competing against.
Below is an example for a furniture shop in France. However, this is another type of segmentation that you need to use carefully. Income Segmentation Income is an obvious way to segment the market. If you run a dollar store, your targets are probably consumers with lower incomes.
One way to carry the analysis is to benchmark your competitor against each of the key drivers of demand for your market price, quality, add-on services, etc.
Different groups may have different tastes in food, live in different neighborhoods and have different attitudes. Number of decision makers When selling to consumers or businesses, the more individuals or groups involved in the purchase decision, the more difficult the sale.
And in the Strategy section explain that you will focus on locals looking for a place to meet rather than takeaway coffee and that your differentiating factor will be the authenticity and atmosphere of your local shop. Reduction in expenses Prospects might be businesses that are downsizing right sizingbusinesses that have products in the mature stage of their life cycle or individuals with credit rating problems.
This section is relevant when your market has clear segments with different drivers of demand. You should write this part in parallel with the Competitive Edge part of the Strategy section. While you may not be able to make this classification of the prospect prior to the first contact, if your sales personnel are sensitive to these characteristics it can strongly influence your sales strategy.
For example, when a local computer store business defines its customer segments as "high-end home office" and "high-technology small business," its segmentation says a lot about its customers. If not then you can either buy some market research or try to estimate it yourself.
Avocation This could include products for hunting, fishing, golf, art work, knitting, etc. To improve your employee working conditions it might be a good idea to take a look at something like this benefit administration software to help your business thrive and keep your employees happy and healthy.
Usually concerned with keeping employees informed and educated, so educational offerings are of interest. For example, an individual prospect may immediately think of Wal-Mart or Home Depot when considering an offering like yours. The first thing to do is to see if the figure is publicly available as either published by a consultancy firm or by a state body.
Seller Characteristics that can influence purchase decision: Is this the best segmentation?Java Culture coffee shop business plan market analysis summary. Java Culture is a gourmet coffee bar that boasts a fun, relaxed atmosphere for its customers.
Market Segmentation. Cafe Roma is a good example of such competition. We estimate that Starbucks holds approximately 35% market share in that neighborhood, Cafe Roma appeals to /5().
Segmentation can make a huge difference in understanding your market. For example, when a local computer store business defines its customer segments as "high-end home office" and "high-technology. Jun 29, · Market segmentation allows you to fine-tune your ads to target customers based on age, income, gender and other factors.
It's a valuable technique if it's used carefully. A key part of any business plan is the market analysis. This section needs to demonstrate both your expertise in your particular market and the attractiveness of the market from a financial standpoint.
Target Market Segment Strategy. The target market is defined by the customer needs that create the market, the structural forces that govern operation within the market, and the attractiveness of the market based on strategic value, market size, market growth, and potential for profit/5(68).
When writing a business plan, the focus of the Market Analysis section is a thorough examination of your target market: those people to whom you intend to sell your products or services.
Even if you intend on selling a product service only within your own community, you won't be .Download