Sample Business Plan - Market Analysis

B. Target Markets

1. Distinguishing characteristics of your primary target markets and market segments (Narrow your target markets to a manageable size. Efforts to penetrate target markets that are too broad are often ineffective.)
1. Critical needs
2. Extent to which those needs are currently being met
3. Demographics
4. Geographic location
5. Purchase decision-makers and influences
6. Seasonal / cyclical trends
2. Size of the primary target market
1. Number of prospective customers
2. Annual purchases of products or services meeting the same or similar needs as your products or services
3. Geographic area
4. Anticipated market growth
3. Market penetration (Indicate the extent to which you anticipate penetrating your market and demonstrate why you feel that level of penetration is achievable based on your market research.)
1. Market share
2. Number of customers
3. Geographic coverage
4. Rationale for market penetration estimates
4. Pricing / gross margin targets
1. Price levels
2. Gross margin levels
3. Discount structure (volume, prompt payment, etc.)
5. Methods by which specific members of your target market can be identified
1. Directories
2. Trade association publications
3. Government documents
6. Media through which you can communicate with specific members of your target market
1. Publications
2. Radio / television broadcasts
3. Sources of influence / advice
7. Purchasing cycle of potential customers
1. Identification of needs
2. Research for solutions to needs
3. Solution evaluation process
4. Final solution selection responsibility and authority (executives, purchasing agents, engineers, etc.)
8. Key trends and anticipated changes within your primary target markets
9. secondary target markets and key attributes
1. Needs
2. Demographics
3. Significant future trends