qprev_HBB Manual 2.qxd - Small Business BC

uy for them, such as parents for babies andtoddlers – can help you separate real targetmarkets from unlikely possibilities.Once a business is established, research yields asteady supply of names and addresses of currentor potential customers. This information is thekey to the demographic profiles that StatisticsCanada has already prepared on the basis ofcensus data. This information is organizedaccording to postal code. Markets tend to cluster;if several customer addresses are in the samearea, the census data will be able to tell you a lotabout the target market group; size of household,annual earnings, and percentage that own theirown homes. This use of secondary data is a goodway to get a general fix on a target market beforeinvesting time and energy in doing a test marketsurvey.A demographic profile of the most probablebuyers in a market area describes a business’starget market. Use this as a guideline: you can’tknow too much about your customers. Whenpossible target markets have been narrowed tothe most likely, a market profile giving thefollowing information will support the choice.visible and easier to find than a group of possiblefuture buyers. But keeping the customer in focusis crucial to marketing success, even when youare thinking about the competition.By researching your competition, you canproduce a competition profile, using industry andtrade directories, the yellow pages, as well assome amateur detective work by including visitsto competitors’ businesses.A competition profile tells you where your targetcustomers presently buy similar products orservices. It includes:• Names of firms and their locations• Appearance of business sites and layout ofoperation• History, and number of years competitors havebeen in business• Similar products or services to yours – source,features and price• Related products or services that thecompetitor sells• Suppliers• Number of employees• SalesCompetitionYour competition is the businesses who sellsimilar products or services to the samecustomers you have selected as target markets. Afirm that sells exactly the same thing you do –but to a totally different market – is notcompetition that needs your attention. Some newbusiness people concentrate more on thecompetition than they do on customers. This isunderstandable – the competition is often moreBy studying the competition, you will be able toassess whether you can find a special place in themarket that does not necessarily reducecompetitors’ sales but expands the market tobenefit the whole industry. Finding this special orunique place in the market is called a marketniche or positioning your business.Position refers to the image customers have ofyour business. The secret is to create a businessimage that acts as a natural magnet for yoursolutions for small business home-based business 37