Target Market

Abstract

An important task of Business Development is to have a good overview of the current market situation. This overview is very important as new or existing products must ideally be positioned in the target market, to achieve high sales. In order to find and understand this target market for the first time, a market analysis is necessary. Here, either through own online and offline research or by external market research companies, the market, its participants, the products represented in it, the customers with their requirements, and the competitors are analyzed extensively. In a next step, the defined target market can then be divided into individual market segments. This is helpful because different market segments have different requirements and different target customers who may need a different sales approach. Afterwards, the defined target market can be examined with the help of a risk analysis, which shows on the one hand, which opportunities the market offers, on the other hand also shows, which risks arise. These should be thoroughly understood and best avoided. Another task of Business Development can also be the internationalization of a product. A new market in one or more new countries where a distribution is worthwhile is searched for a known market. Here, many details and regulations have to be taken into account in order to create a successful market entry.