A grocery store might note a trend toward asian foods

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Unformatted text preview: oad customer. Have you defined which segment is which, and why? As you deal with segmentation, you should also introduce the strategy behind it and your choice of target markets. Explain why your business is focusing on these specific target market groups. What makes these groups more interesting than the other groups that you’ve ruled out? Why are the characteristics you specify important? This is more important for some businesses than others. A clothing boutique, for example, might focus on one set of upper-income customers instead of another, for strategic reasons. An office equipment store might focus on certain business types with needs that match the firm’s expertise. Some fast food restaurants focus on families with children under driving age. Strategy is focus; it is creative and it doesn’t follow pre-written formulas. HURDLE: THE BOOK 12.4 ON BUSINESS PLANNING Explain Market Needs, Growth, and Trends All marketing should be based on underlying needs. For each market segment included in your strategy, explain the market needs that lead this group to buy your product or service. Did the need exist before the business was there? Are there other products or services or stores that offer different ways to satisfy this same need? Do you have market research related to this market need? It is always a good idea to try to define your retail offering in terms of target market needs, so you focus not on what you have to sell, but rather on the buyer needs you satisfy. As a shoe store, for example, are you selling shoes or are you satisfying the customer needs for covered feet? Are there additional underlying needs, such as style and prestige for fashion footwear, or padding for runners, or jumping for basketball players, that relate to selling shoes? Are kids buying status with their basketball shoes? Understand and explain market trends. What factors seem to be changing the market, or changing the business? What developing trends can make a difference? Market trends could be changes in demographics, changes in customer needs, a new sense of style or fashion, or something else. It depends on what business you...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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