Market Segment Analysis

Business Plan

You've already identified groups of people using demographics and psychographics who will be the most receptive to your business.

A Market Segment Analysis explains why these groups of people will be the core of your customer base and how you plan to leverage this community to build and scale your brand.

 

Writing the Market Segment Analysis

Introduction

  1. Set the hook by describing the role your Target Market – your're ideal customer – will play in building a community of loyal and active customers for your brand
  2. Write a description that demonstrates your understanding that by clearly defining your Target Market helps define your marketing strategy in the areas of product, price, place, and promotion (the 4 P's).

 

Explanation of Demographics (paragraph #2)

  1. Begin with a topic sentence introducing the demographics of your target market.
  2. Follow with explanations of why you feel these characteristics best define your ideal customer.
    • After this paragraph, insert the demographic chart you created in Demographics and Psychographics for the proposed target market of your company.
    • Delete out the Psychographic descrption and leave it empty

Explanation of Psychographics (paragraph #3)

  1. Begin with a topic sentence introducing the psychographic of your target market.
  2. Follow with an explanation of why you feel this psychographic VALS type best defines your ideal customer.
    • After this paragraph, insert the psychographic chart you created in Demographics and Psychographics for the proposed target market of your company.
    • Delete out the demoographic data and leave it empty

Explanation of Primary Motivation and Resources

  1. Begin with a topic sentence introducing the type of primary motivation of your Target Market: ideals, achievement, or self-expression (see Demographics and Psychographics
  2. Follow with an explanation of how the level of resources (income, socio-economic status) identified in your Target Market enhance or constrain a person's expression of his or her primary motivation (ideals, achievment, or self-expression) and how this might affect your strategy for building your brand.
    • After this paragraph, insert the Target Market Profile chart you created in Demographics and Psychographics for the proposed target market of your company.
    • Don't delete any of the data in this chart

 

Conclusion

  1. End your Market Segment Analysis with an explanation of how you plan to leverage the Target Market Profile to build your brand
  2. Follow with an explanation of your intend to use this data to create a marketing strategy specifically designed for this core group of potential customers

 

Save as > "market-segment-analysis" in your Business Plan folder

Upload to the Synergy Dropbox under "E4 BP | Market Segement Analysis"