Primary & Secondary Markets

IDENTIFY YOUR MARKET

IDENTIFY YOUR MARKET

Goals• Identify a target market by analyzing the needs of

customers.

• Explain how market segmentation can help an entrepreneur analyze a target market.

MARKET SEGMENTS

Market segments

• groups of customers within a large market who share common characteristics

• Most products and services appeal to a small portion of the population.

• Segmentation helps you serve your niche efficiently.

If you try and target everyone, you will end up targeting no one!

SO….WHAT IS A TARGET MARKET?Target Market = the individuals or companies that are interested in a particular product or service

What is the difference between Primary and Secondary Markets?

• A primary market will be the intended target market to which a company originally might have produced it's products or services for and the larger source of revenues.

• The secondary market will be a market that is marketable but not the first priority of sustainability for the company.

IDENTIFY YOUR TARGET MARKET

• What should you take into consideration regarding your customers to determine you target market?

Demo Geo Psycho

DEMOGRAPHICS

Data that describes a group of people in terms of

• age

• marital status

• family size

• ethnicity

• gender

• profession

• education

• income

GEOGRAPHICS

Data that helps you determine

• where your potential customers live

• how far customers will travel to do business with you

PYSCHOGRAPHICS

Data that describe a group of people in terms of

• tastes

• opinions

• personality traits

• lifestyle habits

TARGET MARKET

YOUR TASK

For the following products, define the target and secondary markets.