To choose a target market you start with a broad range of customers, such as homemakers, people who the computer, or bike riders. Then you segment the customers by one or more characteristics to more narrowly define your target customer. The chart given below helps you define what ways you will use to segment your target customer. List at the bottom of the form a more complete description of your segmentation criteria. For example, you might check off the category income as a way to segment customers. In the tactics for segmenting you might list income over 100,000 RS,

Tactics for segmenting customers:

Size: could be size of trolling motors, clothing sizes, or size of household

Usage or type: Could be how people use a product, a Weed Whacker for fences versus for plant groups, or type of retail store, big versus small, free standing versus mall store.

Benefits: Some people who buy a back support want less pain. Others want to prevent an injury. Others buy it for their workers for safety reasons.

Lifestyle: Target customers could be active outdoors people, nightclub junkies, or people who want an alternative look.

Motivation: Customers could be goal oriented, wanting to lose 10 pounds. Others are image-oriented, usage-oriented, or entertainment or fun-oriented.

Predisposition: Some people are predisposed to buy recycled products. Others want the same product as their parents use, others want trendy type products.

Distribution Channel: Selling products through upscale coffee shops, convenience stores, or supermarkets would all be different distribution channels requiring different products.

Geography: You might choose a small area, a state or a region to sell you product, Income, Occupation or Social Class. How trendy or upscale a product is depends on what segment you choose.

Company: Professional or individual. Electrical tools are different depending on what your target market is.