Business Plan

Target Market Demographic Estimate for *City, Oregon

It is important for a successful business person to remember that any business is about people. The important people being discussed in this assignment are customers. More specifically, will you have enough of them? Obviously, without customers a business cannot be profitable.

You have already made some estimates of who you think your target market is demographically in Jackson County; however, Jackson County is a broad area encompassing several towns and cities, and collecting data based on these numbers may actually convolute your data and mis-represent your potential for success. While your business will attract patrons from these places, your typical custmomer will reside in the same town or city as your business.

To accurately estimate and paint a more realistic analysis of your target market, we need to find out how many potential customers there are in the town or city.

Instructions

  1. Open the "Target Market Estimate" Excel spreadsheet you created in Target Market Demographics
  2. In a new sheet, format the table with the following:
  3. Demographic Measurement

    Data

    Percentage

    Total Population of *City, Oregon   100%
         
         
         
    Average of Demographic Area (ETM) for *City, Oregon    
  4. Highlight the data set, and copy > paste in a new sheet
  5. Repeat this procedure for each of the different Demographic Measurements or categories you identified for your target market so you have a sheet for each one. You should have at least the required 5, but some may elect to add more for increased detail
  6. In each sheet, type in the appropriate information pertaining to the Demographic Measurement as in the example below for age.
  7. Demographic Measurement: Male Population by Age

    Data

    Percentage

    Total Population of Males in Medford, Oregon   100%
    - Number of Males Age 20 - 24    
    - Number of Males Age 25 - 29    
    - Number of Males Age 30 - 34    
    Total    
  8. Find the demographic data using the following resources
  9. Fill in each sheet in the Excel Workbook with the relevant demographic data. Add the total amount for each demographic measurement
  10. Create a new sheet and format the table like the following example. Fill in the left column with the Demographic Measurements you determined to fit your business
  11. Target Market Demographic Estimate

    Demographic Measurement

    Total

    Percentage

    Male Population by Age    
    Female Population by Age    
    Marital Status    
    Education Level    
    Income Level    
         
    Average of Demographic Measurements (ETM)    
  12. Find the average of the Demographic Measurements by adding the total value for each measurement then dividing by the number of Measurements you used. In the example above, we would add each total then divide by 5
  13. Next, find the averge percentage (%) by dividing the average value you just calculated into the total population of the city or town in which your business is located
  14. These values represent your estimated Target Market
    • The mathematically inclined among you will probably wonder how accurate this estimate is. The key word here is estimate. We do not know how the demographic areas overlap so we are simply averaging percentages of the population to estimate how many people fit in your business' target market

Graphing the Data