Stages of Determining Target Market in a New Market
Essay Preview: Stages of Determining Target Market in a New Market
Report this essay
Deciding to enter a new market, a company has to investigate and analyze many vital factors. One of them is target market, which plays an essential role in deciding whether a company can break into the market successfully. The main stages in the process of determining target market in a new market are listing the characteristics of products, segmenting the market and conducting the market research.
The first stage begins when the company has to list all the characteristics of product. The physical features need to be mentioned specifically with the aim of figuring out the unique selling point of product. Similarly, the company should be aware of what the customers gain from using their product. Based on the collected data, the decision of whether to sell to the industrial, consumer or reseller market will be made.
The next stage is segmenting the market, when the company divides the potential customers into specific sections according to some criteria such as: location, age, gender The market segments being responsive to the products characteristics should be highlighted clearly. The more potential customers they define, the better effective product launch they have.
The last stage occurs when the company makes decision of conducting the market research. Digging through the government and local data about the business policies will help the company to weigh up the pros and cons of economic and social contexts. Commonly, most of companies conduct the surveys and tests to receive feedbacks from customers. Hence, they can possess the objective views about customers demand in each market segment.
In conclusion, it is extremely necessary for a company to determine target market before breaking into a new market. In general, nearly every company conducting this task has to go through three main steps as mentioned above.