Session 4: Market Analysis

Objectives: Session 4 – Market Analysis

In this session you will learn:

  • What is a “target market” and what does it mean for my business?
  • How can I find out who my target market is?
  • What is it that makes my customers buy from me?

OVERVIEW

How many buyers are there?  Where are they, and what do they care about? What do they read, what do they watch, what do they listen to? The more you can learn about your buyers, the better you can market your business to them.

DEFINITION

Demographics: A way to group people based on similar traits, such as age, income, and home ownership. This can help a business understand the buying habits of the group in order to better market to them. The best free source for this kind of information is the U.S. Census online. You will find information on housing, income, businesses, and more.

Market Analysis: Looks at the total market size and growth, then breaks the market down into segments, which leads to marketing to each segment (target) with a special message for that segment.

Psychographics: A way to group people based on lifestyle, beliefs, values, buying habits, and product usage. The original research is the VALS Framework. Click the link to see more detail.

Target Market: A segment of people a company identifies as the main customer for their product or service.

Required Reading: Session 4 – Market Analysis

This chapter is required reading for this session:

  • 3 Weeks to Startup, Chapter 3, About Your Market

Optional Reading

This chapter is not required reading, but it does support the reading for this class session:

  • The Plan-As-You-Go Business Plan, Chapter 5, Pages 210-218

Optional Resources: Session 4 – Market Analysis

These resources provide ideas from other business and marketing experts. They are not required reading for this session.

Two examples of finding a market need:

Need vs. Recognized Need
Sometimes you can see a need and still not be able to explain it to customers. This post, True Story, Good Idea, but Hard to Explain, is an example.

Sometimes you can make people more aware of a need they already have. This post, Marketing: Creating Wants or Filling Them? is an example.

More resources
For more information on how do divide a market into segments, how to analyze a target market, and marketing in general, visit mplans.com.