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As noted the purposed in identifying your customer or market segment is too effectively, profitably and efficiently sells your product. Once you have targeted your customer you can include feedback new product development and cost control in all aspect of your operations for you know who your customer is and where to get the essential guidance information.

Examples

The Hot Bread Shops

The popularity of independent or franchised small bakeries is seen in the numbers that have been opened in shopping and market centers. Generally privately owned the businesses Have growth with the novelty of a range of a bread products and the quality of goods produced within the shop premises. Once operational, the problem is how to increase sales and select the range of baked goods suitable for the market.

A Hot Bread Shop in a community centre decided to manage its own research effort by choosing several nearby suburban areas for customer studies. At the same time they would be introducing their business for greater market awareness. They prepared a small brochure with questions asking respondents that types of bread or baked products they prepared, how often they purchased and requested information about the family, home, location, etc. the questionnaires were dropped in home mail boxes in the suburban areas with the assurances that when completed and returned to the Shop, a 10% discount would be given on any purchase at that time.

The result of the research effort saw regular business increased by 12% and several new products were introduced though preference indications. The area customer base was identified as having interest in the health features of different breads, freshness with on site backing and little reluctance to pay a modest premium of the desired products. A revised Business Plan was written to cope with the financial needs of the increased business and considerations given to opening a second shop in another market location.