Assignment 4: Final Business Plan

Phabian Smith

Professor Dr. Talil Abrhiem

BUS 313: Introduction to Entrepreneurship

May 5, 2019

The Target Market for Tax Preparation Business

Target market is a group of people comprising of potential customers a company or an organization targets its products and marketing efforts. In this case, the target market will be working individuals who are financially stable and in their early working age. The primary market is a segment of the marketplace that is strategic for selling its products and services (Castles, 2010). In many cases, primary target markets include a group of customers who can buy products directly from the business.

In the primary market segmentation, factors that favor the selection of the segmentation are the small size of the segment which hence represents the number of customers, the growth rate of the segment, and the level of competition in the segment (Stephen, 2010). The Primary market segment is characterized by a small number of potential buyers of the products and the growth rate of the segment is usually low. The competition in the segment is not intense as compared to that in the secondary market segments. It is due to these factors that the primary target market is favorable.

The secondary target market has simply defined a market where investors buy and sell securities and products that they already own. While choosing a target market that will be used to market the goods and services of a company, the secondary target market requires one to consider the age, location, and income levels of the target market. Before settling on a specific secondary marketing strategy, managers should consider the age of their product customers. This enables them to estimate the number of potential customers in a market and businesses can meet the needs and requirements of the population. The distribution and the amount of income are also key in choosing the secondary target market of an organization. This is because companies can estimate the possibility of people in a given market to buy their goods and services. The location of customers in a secondary market also enables a company to determine the level of distribution of its customers in a given market.

References

Castles r, G. M. (2010). The functions of distribution strategies: modern distribution channels in relation to goods and services

Stephen, D., Khoo, H. M., & Powers, C. (2010). Situated learning in cross-functional virtual teams. Technical Communication, 47(1), 51-66.