Consider your market

What type of people will buy from you and who will you target?

• Make a list of characteristics of the people who will buy your product or service.
• Where do the majority of these types of people live? Conduct some market research to find this out. There are many ways to find market research data. You could:
  • visit potential competitors to observe the types of customers they attract
  • talk to people in the industry
  • ask customers their opinions – it's important to assess for yourself the needs of individual customers
  • access statistical information from the Australian Bureau of Statistics, industry associations and chambers of commerce; specialty trade or industry journals, research reports and publications; Yellow Pages Online and other business directories; libraries/universities; small business corporations/advisory services.
• Complete our customer profile chart to help assess your potential market.
• Learn about the basics of selling.
• Learn about the basics of marketing.
• Use our market research kit to research online.
• Find your industry association.

How will you reach different segments of your target market?

• Identify smaller groups of people with similar characteristics who might be seeking similar features or benefits from your product.
• What sort of marketing strategies will you use for different segments? Marketing can be very expensive so it's important you use appropriate strategies for each particular segment. You could consider:
  • what would entice customers to buy your product or service
  • customer service
  • competitive pricing
  • efficient distribution network
  • packaging and presentation
  • finding prospects
  • promotional ideas
  • potential markets to be targeted and those to avoid
  • where to advertise (e.g. newspapers, magazines, TV, publications, direct mail).

Do you have enough time and money to devote to the initial marketing?

• Consider how many people you need to reach to achieve your expected level of sales.
• Consider the cost and time of each promotional campaign. In the first year or two you might need to spend a lot of time and money gaining new clients before you can rely on word of mouth, referrals and repeat customers.
• Complete our marketing actions chart to help plan your marketing strategy.

Also consider...

• View our 7 steps to business success e-learning series and find out how to improve your chances of business success.
• Read our research resources for business and industry.
• See your local council for more information about the local market.
• Find out how to brand your business.
• Read more about tips for effective advertising.