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Target Market Description

Simple Alliance, Kenya Limited


Market Description

Among the most important segments of your business plan is the section where you describe your target market. Within this section, you provide comprehensive, accurate details about your target market. To gather this crucial information, you may have to conduct extensive market research. You thus arrive at an apt analysis of target market. This study enables you to give an accurate description of a market.

Important Data

Some useful market particulars include aspects such as:

  • Target customers’ attitudes
  • Target customers’ purchasing behaviours
  • Target customers’ traits

Audience

Usually, your target audience comprises your potential: 

  • Investors
  • Partner(s)
  • Financiers

Functions

The target market description section of your business plan serves a number of important purposes. Some of these functions include:

  • Identifying your target customers
  • Making an estimate about the number of your target customers
  • Determining key demographic characteristics of your target customers such as their residence, sex, marital statuses, family life cycles, ethnic background, religious background, or ages    
  • Describing the occupations of your target customers
  • Describing the pastimes of your target customers  
  • Determining the education level of your prospective customers
  • Informing your audience (prospective lenders, partners, or investors) that your business have adequate customers
  • Explaining that your business has the capacity to make impressive sales in spite of the present competition
  • Outlining the size of your current market  
  • Delineating the needs or desires of your target customers
  • Describing the trends within your current market   
  • Forecasting the sales volumes your business aspires to attain
  • Determining the amount of money you will need for functions such as production and marketing  
  • Researching your competitors
  • Informing your audience about the lifestyle of your target market
  • Predicting the frequency with which your target customers will use your products or services

Competitor Research

So as to properly position your services or products in your target market, you need to know some details about your competitors. This information is crucial as it helps you to effectively compete with your competitors. Some competitors’ details you may find useful include:

  • The competition level of competitors’ services or products    
  • Your competitors’ quoted services or products’ prices   
  • Your competitors’ turnover levels
  • Your competitors’ marketing strategies and scope
  • Your competitors’ product development techniques
  • Your competitors’ shortfalls

Market Description Divisions

Based on Market Scope

Depending on the scope and placement of your business, your target market could be of two types, namely:

  • Local
  • International 

Based on Market Importance

If your target market is composed on onetime customers, you have a secondary market. Such a secondary market could comprise visiting tourists, scholars, or delegates to conferences.

Based on Client Permanence

A primary market refers to your core clientele base. Usually, these customers are residents in the area within which you do business. 

Attachments

The below provides you with worksheets and samples that could help you in doing market description.  

Toolbox

Market description is an important business plan task. During market description, you provide your target audience with accurate and detailed data about your customers. Your readers could comprise potential, lenders, financiers, or partners. Some significant customer information that you describe include: demographics, lifestyle, and preferences. You also provide industry information within the target market description section. Some useful information includes; market size, projected sales volumes, required finances, and market needs. In your description of a market, you may also provide certain competitor information within the market description segment of your business plan. Basically, you provide data about competitor weaknesses, competitor pricing policy, competitor product quality, and competitor sales volumes.

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