How to determine the target group

In order to successfully conduct business and reliably take its position in the market, a company needs to single out a target group among its clients. This is a group of consumers of goods or services that bring the maximum income to the company. Their total number can be very small compared to the list of counterparty consumers, but they are the most profitable customers. Naturally, the satisfaction of their needs should be given priority to the company.

Instruction manual

1

Suppose you decide to engage in the wholesale of cement and gravel - the necessary components in the production of concrete. How can you determine which customers will constitute the target group, that is, will ensure the sale of the main volumes of products? Carry out a marketing analysis. Find out if there are concrete plants, homebuilding plants in your region, what is the length of the road network, and in what condition. Try also to find out if construction is underway in municipalities and country-garden associations (residential buildings, fences, etc.), and what is its scale.

2

Inquire about the average monthly (average quarterly, average annual) needs of factories and house-building plants for cement and crushed stone, as well as from whom and for what price they purchase these materials. Do the same work for building organizations.

3

Based on the information received, select the target group of your potential customers in order of priority:

- factories of reinforced concrete products and house-building plants;

- construction and road repair organizations;

- Wholesale buyers (owners of building materials stores, managers of seasonal construction crews, etc.).

4

Or, for example, you decide to trade in clothes. How to determine the target group of customers that will give the most profit? Analyze the prospect of trade, taking into account such factors: the location of the store, the financial capabilities of potential clients (employees of nearby enterprises, institutions, and residents of nearby houses), your product range and pricing policy.

5

If your store is located in a prestigious area, next to the offices of large companies, the target group may be their leadership, top and middle managers. Choose the appropriate product range. If it is located on the outskirts, and the clientele consists exclusively of residents of the surrounding area, then expensive, exclusive goods are unlikely to find demand. Your target group will then be people of medium or even low income, and you should give preference to high-quality, but inexpensive clothes.

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