Explain 'identify the target market' as a step in preparing the marketing plan.

Question

Accepted Answer

Identifying the target market involves: (a) deciding the general market or industry the entrepreneur wishes to pursue, based on market research or industry analysis; (b) dividing the market into smaller groups based on (i) consumer characteristics — geographic (state, country), demographic (sex, age), psychographics (personality, lifestyle) — and (ii) buying situations — buying conditions, usage, desired benefits; (c) selecting the segment or segments to target; and (d) developing a marketing plan integrating product, price, distribution and promotion.