Question

The new furniture products of the organisation will be aimed at a specific market.

1. How will you identify the target market?

2. How will you estimate the significance of these products to that market?

3. why is it necessary to do so? (500 words)

Answer 1

1. Identifying your target market.

Deriving the present customer base.

For a furniture business customer base is important and to analyze the present situation of the business is required more. When you are new to the business you should check the category of consumers buying the products. You should focus on the customer base more

Identifying the competitors and make your USP

The competitive market of furniture makes it difficult for new enterprises if they are selling similar kind of products so if you are a new enterprise you should make a unique product which is different from other competitors such as luxury or premium office furniture or else affordable bamboo furniture which should be targeted to the special customer base.

Specific target demography and psychography

If you target for a special group of consumers that is better as compared to focussing all groups. For example, you can target middle class or lower middle-class income people or small companies and make products affordable for them. Otherwise, you can target for special age groups like children or senior citizens. You should reach the target group through any special message so that the products get noticed by them.

Market research is utmost important for a business to know your customer.

2.Estimating the significance

Estimating a products significance requires a detailed analysis of the market

The subset of market needs to be analyzed i.e. from the total available market how much you can serve i.e served the available market. You can target your furniture products to only that market and gain your market share initially rather focussing on the full market and failing the product.

Data analysis and trend analysis is an important function of launching any product to the market which shows the demand pattern product wise and future predictions as well. The significance of a product can always come from the historical data and the trend too

3. The necessity to do this kind of analysis is to capture the market share easily. A new product finds it difficult to be noticed unless the market is not analyzed properly and may fail the product portfolio.WIthout doing market research and knowing your target market you can not survive the market for long.