Question: Which of the following is the first step when defining your target market?
A Segment your total market
B Develop customer personas
C Research and validate your market opportunity
D Identify the customer need you address
Answer: Identify the customer need you address
| Steps in defining target market | Description | |
| 1 | Identify the customer need you address | Understand the specific needs, problems, or opportunities that the product or service can address. |
| 2 | Segment your total market | Divide the broader market into distinct segments based on common characteristics, such as demographics, behavior etc. |
| 3 | Profile your target customer segment(s) | Create detailed profiles of ideal customers within each segment, including characteristics, pain points and preferences. |
| 4 | Research and validate your market opportunity | Conduct market research to assess the demand, competition and growth potential within your selected segments. |
| 5 | Evaluate competitive landscape | Analyze existing competitors and their market presence to identify gaps and opportunities. |
| 6 | Determine target market size and growth potential | Estimate the size of your target market and assess its growth trends and potential. |
| 7 | Develop customer personas or buyer profiles | Create fictional representations of typical customers, incorporating demographics, behaviors, motivations and pain points. |
| 8 | Analyze buying behavior and decision-making processes | Understand how customers in segments make purchasing decisions and the factors that influence their choices. |
| 9 | Refine your unique value proposition | Develop a compelling value proposition that highlights how the product or service uniquely addresses the target customers’ needs and why they should choose you over competitors. |
| 10 | Test and iterate on market segmentation and strategy | Continuously test and refine market segmentation and overall strategy based on real-world feedback and changing market conditions. |