Madam Essay

667 WordsApr 1, 20153 Pages
The last step in determining target markets is to attempt to calculate the demand for your product in your chosen target market segments. The demand analysis is a check to make sure that the target segment is large enough to warrant your effort. The conclusions will be directional and are intended to provide you with a rough estimate of the size of your market and the potential business you might generate. It should give you a first check to make sure the sales goals you set in the plan are realistic and obtainable. The following list outlines the procedures to take in estimating demand for your product. This is the top-level figure of potential customers. It can be used for calculating future or potential demand. Geographic Territory: How many consumers are in your defined trading area or geographic market territory? Define your geographic territory and deter­mine the number of your target market customers in this area. Consumption Constraints: What consumption habits exist that limit the poten­tial customer base of your target market? Determine if there are consump­tion constraints that will reduce the target market for your product. For example, apartment dwellers have no real need for garden tools or lawn mowers. From this review, develop a final estimate of customers in your geographic territory. Average Purchase per Year per Customer: Determine the average number of purchases of your product per year. From the business review and the pur­chase rates/buying habits section, you should have access to the average number of purchases per year for your product category. Total Purchases per Year in Category: What is the total number of purchases made by the target market in your geographic territory per year? Multiply the number of customers in your territory by the average number of pur­chases per year to get total purchases. Average Price: Determine the

More about Madam Essay

Open Document