market analysis

market analysis - e-Business Plan Market Analysis The...

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e-Business Plan: Market Analysis The market analysis section of your e-business plan demonstrates that you know your customers -- who they are, their characteristics, and why they are likely to buy from your business. The process of writing the market analysis requires you to define your target markets and analyze how you will position your product or service to arouse and fulfill their needs in order to maximize sales. In a full-scale business plan the market analysis is part of the marketing plan section, which includes: Market analysis: a definition and description of prospective customers, including target markets, size and structure of the customer base, and growth prospects. Pricing strategy: setting the price of the product or service based on methods such as cost-plus pricing, demand pricing, and competitive pricing; and the use of innovative pricing strategies such as penetration pricing, flexible pricing, and market skimming. Promotion plan: the communication channels you will use to make the customer aware of your product/service and convince them to purchase (e.g., advertising, on-line demonstration videos, packaging). Promotion also includes tracking your customers (e.g., confirming who are your customers and how did they hear about you) and encouraging them to purchase again. Distribution plan: the distribution channel you will use to move the product or service to the customer (e.g., direct sales, wholesale distributors, brokers) and, if necessary, back again (e.g., returns). Demand forecast: estimates of product or service sales, based on the market analysis and assumptions about the effectiveness of the pricing, promotion, and distribution strategies. A business plan tutorial for a marketing course would cover all these areas in considerable detail. However, the most important section for e-commerce professionals is the market analysis, so that is the focus of this lesson. If the scope of your business plan assignment includes the other aspects of marketing planning, then your instructor will provide additional instructions and resources to do so. The lesson outline is: e-Business Target Markets --What are the target markets? --Identifying target markets Target Market Research e-Business Target Markets What are the target markets? The first step in conducting a market analysis is to define your primary, secondary, and, perhaps, tertiary target markets. Your target markets are based on segmentation characteristics within the total addressable market. The segmentation is based on:
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Demographic characteristics: specific, objective factors such as age, gender, race/ethnicity, education, occupation, and income. Geographic characteristics: location-based factors such as country, state, city, mobile workers, and lifestyle setting (e.g., rural versus urban).
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