Last Updated: September 2, References. This article was co-authored by Archana Ramamoorthy, MS. Archana Ramamoorthy is the Chief Technology Officer, North America at Workday She is a product ninja, security advocate, and on a quest to enable more inclusion in the tech industry. There are 14 references cited in this article, which can be found at the bottom of the page. This article has been viewed , times.
Sample Business Plan
How to Write a Business Plan: Target Market Analysis
The market analysis is basically the target market section of your business plan. It is a thorough examination of the ideal people to whom you intend to sell your products or services. Even if you intend on selling a product or service only in your community, you won't be selling that service to everyone who lives there. Knowing exactly what type s of people might be interested in buying your product or service and how many of them reside in your projected area or region is fundamental in creating your market analysis. Once target market data has been established, you'll also work on sales projections within specific time frames, as well as how prospective sales might be affected by trends and policies. Research is key and cornerstone of any solid business plan.
How to do a market analysis for a business plan
Who will buy your product? Assumptions like this can lead to wrong decisions, wrong pricing, wrong marketing strategy — and ultimately, business failure. The most successful small businesses understand that only a limited number of people will buy their product or service. You, too, can build a better, stronger business, by identifying and serving a particular customer group — your target market. For example, in my business, an eco-tourism company, we made some specific decisions early in our market planning.
A key part of any business plan is market analysis. This section needs to demonstrate both your expertise in your particular market and the attractiveness of the market from a financial standpoint. This article first looks at what we mean exactly by market analysis before looking at how to make a good one for your business plan.