December 2008
Beginner
224 pages
3h 46m
English
Content preview from The Truth About Starting a Business
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TRUTH 39 Segmenting the market and selecting a target market
A new business must address this critical question: Who are our customers, and how will we appeal to them? A well-managed start-up uses a two-step approach to answer the first of these questions: segmenting the market, and selecting or developing a specific target market.
Segmenting the market
The first step in selecting a target market is to study the industry in which your firm intends to compete and determine the different potential target markets in that industry. This process is called market segmentation. Market segmentation is important because a new business generally has only enough resources to target one market segment, at least initially.[1] Markets can ...
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