Develop a target market profile

Doing business without a marketing plan is like driving without a map. You may get to your destination—eventually—but you risk making time-consuming and costly errors along the way. You might be assuming there's demand for your product when there isn't, for example. Your services might be priced too low. Or you could be venturing into a market that is impenetrable because of regulatory restrictions.

Develop a target market profile

Demographic portrait

Here you want to demonstrate that you know your customers inside and out, including their expectations and their whims. Your profile should include basic demographic portraits that paint a clear portrait of your clients. Look at characteristics such as age, sex, profession or career, income level, level of educational attainment and geographic location.

Estimated demand

You'll want to provide research that shows the estimated demand for your product or service as well as the rate at which that demand is expected to grow. This builds confidence within financial institutions that your business has growth potential.

Purchase motivation

It's also important to understand exactly what motivates customers to buy. Are your clients looking for savings or a way to simplify their lives, for example, or are they just shopping for pleasure? Ask yourself why they would buy your product or service. In the same vein, you may want to know what keeps customers away from your competitors' products or services. Are they too costly? Do they lack something unique? These insights will help you develop a product or service that outshines the competition.