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Chapter 7. Describing Your Marketplace > Defining Your Market Segment—Targeting...

Defining Your Market Segment—Targeting the Customer

A target market is defined as a group of potential customers with a set of common characteristics that are distinguishable from other types of customers. Your job is to describe in your plan these common characteristics and why you make those potential customers your own.

For example, let's say your target customers all own automobiles. Better yet, older automobiles, perhaps 30 years old or older. Because parts are not readily available for older cars, you decide to open a business that services and repairs these older vehicles. By choosing to sell products and services to car owners with vehicles 30 years old or older, you've segmented the automobile repair and service market. Your research should determine how many of these older automobiles are owned in the geographical area of your repair shop. That is to say, you need to determine how big the market is for this type of business. You might be able to find this information in U.S. census data or from database marketers who get their information from the motor vehicle department of your state. Once you've identified these potential customers, state in your plan how you feel you can service this market. Do you have the strengths, resources, and unique selling position to service these customers?


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