Identifying and analyzing a target market is a major component of formulating a marketing strategy. A clear understanding and explanation of a product’s target market is crucial to developing a useful marketing plan. References to various dimensions of a target market are likely to appear in several locations in a marketing plan. To assist you in understanding how information in this chapter relates to the creation of your marketing plan, focus on the following considerations:

1. What type of targeting strategy is being used for your product? Should a different targeting strategy be employed?

2. Select and justify the segmentation variables that are most appropriate for segmenting the market for your product. If your product is a consumer product, use Figure 5.3 for ideas regarding the most appropriate segmentation variables. If your marketing plan focuses on a business product, review the information in the section entitled “Variables for Segmenting Business Markets.”

3. Discuss how your product should be positioned in the minds of customers in the target market relative to the product positions of competitors.