target market

includes the individuals or companies that are interested in a particular product or service and are willing and able to pay for it

market segments

groups of customers within a large market who share common characteristics

customer profile

a description of the characteristics of the person or company that is likely to purchase a product or service

demographics

data that describe a group of people in terms of age, marital status, family size, ethnicity, gender, profession, education and income

psychographics

data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits

use-based data

data that help you determine how often potential customers use a particular service

geographic data

data that help you determine where your potential customers live and how far they will travel to do business with you

market research

a system for collecting, recording, and analyzing information about customers, competitors, products, and services

primary data

information collected for the very first time to fit a specific purpose

survey

a list of questions you would like to ask your customers to find out demographic and psychographic information

focus group

an in-depth interview with a group of target customers who provide valuable ideas on products and services

secondary data

found in already-published sources

customer relationship management (CRM)

the goal of a new marketing trend that focuses on understanding customers as individuals instead of as part of a group

direct competition

a business that makes most of its money selling the same or similar products or services to the same market as other businesses

indirect competition

a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses

competitive analysis

identifying and examining the characteristic of a competing firm