In African business environment, there are many businessmen doing what others are doing. Moreover products and services in Africa face a lot of competition from abroad. As a small business owner you have to as a result identify your target market and offer your products and services to meet the changing consumer needs.
Target Market
It is businesses and people who want your products and services and are willing to pay for them. For a new business is the customers you hope to get in future. Customers are the most important people for your business. Without them there will be no sales, no profit, therefore no business. It is dangerous to start a business when there is no clear target and how to sell your products and services.
Customer Buying Motives
There are different reasons why customers buy a product or service. One of the reasons is that the product or service satisfies their emotional, physical and psychological needs. If you want to handle your customers well you have to find out all times the reasons behind the buying.
Identifying the Market
You need to establish the potential of a prospective market by asking the following questions:
- What type of product or service am I selling? You must know that what your customers need to buy is what you have to sell.
- Who are my potential customers? You must know the people you sell to, the quality of the the product that is acceptable to them, their income level and how much they are willing to pay.
- Where can I find my customers? The location of your customers is important. If you know where they are it will help you plan to reach them with your products or services. It is important to find out the size of your potential market. This will enable you estimate the volume of your products needed by your customers in a week, month or year and estimate the viability of your business.
Market Survey
It is a tool which systematically used can reduce risk and improve profitability of a business.
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