Planning Your Marketing

2. The Market

Understanding the market allows you to target promising market segments which suit your strengths.

2.1 Who are the users of products like yours?

• Divide them into different categories to help you spot the best opportunities. For example, a pet products company might use three levels of segmentation: pets generally, type of pet (eg dog), and breed (eg labrador). The corresponding products are feeding dishes (for all pets), dog leads, and a labrador video.

2.2 What do the users value most in products like yours?

• How do they choose between different suppliers?

2.3 How can you reach the customers? Or, put another way, how do your customers purchase your product?

• The obvious channels might include direct sales, wholesalers, retail, agents and distributors and the Internet.
• Consider alternative channels and influencers. For example, one accounting software company built its success on using the accountancy profession as a channel to reach smaller businesses.

2.4 What size is the market? Is it expanding or declining? What are the key trends?

• Be realistic. For example, the market for a high street shop is probably restricted to people who already visit the town centre.

2.5 What is the competition doing?

• Profile your competitors and their products. Ask their customers why they prefer the competitor's products to yours.

2.6 What other factors influence your business environment?

• For example, government expenditure, imports or new technology.