M4

The target market is the buyer of the product. According to Philip Kotler (p.d.), a target market is
a well-defined set of customers whose needs the organization plans to satisfy. Business sectors
identify and describe them as the ultimate and final users of the product. Here, it describes the
potential customers as well as where, how, and why they are likely to be found. The topic of how
large the potential market can possibly grow is also discussed here, including how the share of
that local market can help in the expansion of this study/business proposal.

The objective of this part is to determine which part of the total potential market will be served
by the firm. Considering that the market must be defined in terms of size, demographics, growth
prospects, trends, and sales potential market and the total aggregate sales of the competitors
must be presented.

DESCRIPTION OF THE TARGET MARKET

1. Distinguish or determine the consumer from the customer.

2. Explore the benefits of the proposed product to the target market

3. How and why would the target market buy the product or service?

4. Is there a potential to increase the target market?

Business-to-business markets include:

1. The Target market

2. Frequency of product purchase

3. Tendency for replacement needs versus expansion purchasing process

4. Estimates of market size, initial targeted geographic area, enterprise's targeted market share.

Business-to-consumer markets include:

1. Demographic factors, such as income level, age range, gender, educational level, ethnicity of
the target market;
2. Psychographic factors of the target market;

3. Behavioural factors such as frequency of product purchase and shopping behavior of the
target market.

Categories of Consumer

1. Price Shoppers

This group is interested in the best deal for a product. They are commonly called as
"PRAKTIKAL" and price-conscious.

2. Brand-Loyal Customers

This group believes that their present brands are superior to others and are willing to pay fair
prices for products just to acquire them.

3. Status Seekers

People who are interested in prestigious or called (signature) brands or known product categories
and willing to pay at any price.

4. Service or Feature Shoppers

This group seeks a high value on customer service and product features and will pay for them.

5. Convenience Shoppers

People who value nearby locations, long store hours and are willing to pay for easier shopping.
CONSUMER REALITIES IN 2016

According to the survey, 72% of consumers say they will respond to calls-to-action in marketing
messages they receive within sight of the retailer and 23% of retail marketers use 'some type of
geolocation marketing in their mobile marketing.

Seamless Sensation - The online and offline experiences are intertwined as consumers navigate
their daily lives seamlessly, resonating with both the physical and the digital realm. The culture
is changed. The language is changed. The physical and digital worlds are seamlessly intertwined.
What brands should be digitally focusing on in the upcoming year is a seamless experience.

Authenticity takes a new leap in the info overload digitized world where consumers are
empowered to define their own version of the truth.

4 Types of Pain Points and What You Can do About them - Alcea Technologies Inc.

IDENTIFY THE MARKET PROBLEM

In building product, entrepreneurs can meet customers' needs. ln identifying the market
problem, the following can be considered:

1. Existing customers are the people who have already purchased the product you are selling.

2. Target market users are the people in your target market who are not currently looking for a
solution.

3. Prospects are the people who have not yet purchased your product but have an intention to
buy.

TIPS IN IDENTIFYING MARKET PROBLEM

1. Focusing only on innovation and the competition

2. Focusing only on customers

3. Focusing only on revenue

According to Stull, C., Myers, P.& Scott D.M, When interviewing potential users, your goal is to
understand your target market's everyday problems, whether or not you believe that you can
initially solve those problems.

Example: While doing market research, a major TV manufacturer uncovered the problem that
people regularly misplace their TV remote control. Customers did not identify this as a problem
that needed solving, but it was a common issue. By listening to the customers' silent need, the
company was able to develop a feature that resonated with its target market (a "remote-control
finder" button on the TV itself). Using this outside-in approach enables you to concentrate on
and solve your target market's problems. It removes the guesswork from product development
and concerns related to what your competitors are developing. Listening to the market is the
best research you can do to ensure that you build the right solutions.

HOW TO EVALUATE MARKET PROBLEMS?

1. Consider if the market problem is urgent, if yes, consider necessary actions by identifying
alternative courses of action (ACA) then enumerating their advantages and disadvantages.

2. Evaluate if the market problem is pervasive or easily diffused, if yes think of a temporary
solution.

3 Determine if the buyers will pay to have this problem solved.

PROBLEM-IDENTIFICATION RESEARCH

By conducting new market research projects, learners can discover problems or opportunities.
One could discover any of the following factors through problem- identification research:
1. Brand image is the impression in the consumer's mind of a brand's total personality. It
developed over time through advertising campaigns with a consistent idea, this is authenticated
through the consumer's direct experience.

2 Market characteristics describe attributes of the buyers in making decisions related to

purchasing a certain product.

3. Market potential is the estimated maximum total sales revenue of all suppliers of a product in
a market during a certain period.

4. Market share is a percentage of total sales volume in a market captured by a brand, product,
or company.

PROBLEM-SOLVING RESEARCH

1. Distribution Research: It determines how to transfer the product from the manufacturer to the
ultimate user.

2. Market Segmentation: They are group customers by similar characteristics or similar

purchase behaviours.

3. Pricing Research: It determines the ideal price for the product. Setting the price for the
product is one of the most important marketing steps.

4. Product Research: It tests the new or revised products or completing test marketing.

5. Promotional Research: It determines the best research in the area of disseminating

information.

MARKET NEED ANALYSIS

Define the Market Need for the New Business

In analyzing the market need, the following questions should be asked?

1. Who will get interested in my product?

2. What does the market need or want?

3. Who is buying the product? what and how much? or how, where, and why are they buying
those goods or services?

Determining the marketability of the business is typically done in the context of creating a
business plan and performing an analysis of the competition. It requires research in the areas of
marketability. Consider whether the business offers a new solution to an old problem or
complements an emerging trend. Untapped markets that are profitable are few. Understand the
benefits that the product or service offers compare to others. Focus on the 'benefits' of what your
product or service does.

Examine industry data that can confirm whether there is a sustained and growing demand for
the product or service. Have considered sources of industry data, such as trade associations and
government agencies? Identify the percentage of market share that it is realistic to capture. The
more competition, the lower the margins will be.

MARKET ANALYSIS

A market analysis is a quantitative and qualitative assessment of a market ability to respond

positively. It looks into the size of the market both in volume and in value, the various customer
segments and buying patterns, the competition, and the economic environment in terms of
barriers to entry and regulation in the industry.

HOW TO DO A MARKET ANALYSIS?

This is to show to the investors that the company knows their target market. It is large enough
to build a sustainable business.

The following activity can be recommended:

1. Demographics and Segmentation

GitHub - mehra-deepak/Demographic-Segmentation: Demographic segmentation is market
segmentation according to age, race, religion, gender, family size, ethnicity, income, and
education.

Demographics is the statistical characteristics of the human population (as age or income) used
especially to identify markets; a market or segment of the population identified by demographic.

Segmentation is the process of dividing into segments with similar characteristics. Markets are
needed to slice it into different segments. This is especially relevant if competitors focus only on
certain segments. It can be segmented through its size (number of potential customers) and the
value of the market. Estimating the market value is often more difficult than assessing the
number of potential customers.

2. Target Market

How to find your target market? Explained in 7 steps.

This is the type of customers that are focused on within the market. It is focused on the more
qualitative side of the market analysis by looking at what drives the demand.

3. Market Need

Market Analysis | ABC Forex

Investors must determine the needs of the market through analysis based on research
conducted focusing on their needs. identify what the customer wants to classify their needs.

4. Competition

Assess for Success: Evaluate & Improve Your Business – Part 3 – Competitive Analysis | Dixon
Management Services

Determining the competitor's positioning and describe their strengths and weaknesses. Analyze
competitors' angle to the market in order to find a weakness that the company will be able to use
in its own market positioning. One way to carry the analysis is to benchmark the competitor
against each of the key drivers of demand for the market (price, quality, add-on services, etc.)
and present the results in a table.
BARRIERS TO ENTRY

These are the hindrances or material that block or intend to block passage. It is a natural
formation or structure that prevents or hinders movement or action or even separates the new
businesses.

Here are a few examples of barriers to entry:

1. Investment (a project that requires a huge investment)

2. Technology (application of the combination of scientific and engineering knowledge)

3. Brand (the huge marketing costs required to get to a certain level of appreciation)

4. Regulation (licenses and permits in particular)

5. Access to resources (exclusivity with suppliers, accessibility of suppliers)

6. Access to distribution channels (exclusivity with distributors, availability of intermediaries)

7. Location (place, venue where the business is located)