Importance of Target Audience in Strategic Business Planning Process

This essay elucidates the critical role of identifying a target audience in the development and execution of a successful business plan. It emphasizes that a target audience is a group of individuals sharing similar demographic traits, whose identification enables businesses to tailor marketing strategies effectively. The essay underscores the cost-saving benefits of focusing resources on potential customers and highlights the importance of crafting marketing messages that resonate with the target audience's perspective. Furthermore, the document introduces STP analysis (Segmentation, Targeting, and Positioning) as a key marketing tool for identifying the target audience and developing a unique market position. Segmentation involves dividing the market based on demographics, geography, psychographics, and behavior; targeting focuses on market profitability and size; and positioning aims to create a favorable brand image in the minds of the target customers. The essay concludes by advocating for functional positioning, where businesses align their offerings with customer requirements. Desklib provides a wealth of resources, including similar essays and study tools, to support students in their academic endeavors.

Target audience of your
business plan

Contents
Contents...........................................................................................................................................2
MAIN BODY..................................................................................................................................1
Target audience of business.........................................................................................................1
REFERENCES................................................................................................................................3

MAIN BODY
Target audience of business
Target audience can be described as group of people identified by business and also share similar
demographic traits including age, gender, education, location and other components. It is
essential for a business to identify their target audience as it allows them to develop marketing
strategies and also helps to define the target customers of the business (Jiang and et. al., 2020). it
helps businesses to saves cost of the company as it allows them to spend money as well as
resources to only on those people who are interested in the products and services of the company
and also helps them to save money of the company to invest in their efforts over those people
who are not interested to purchase the products and services of the company. It is important for a
business for a different reason which is mentioned below:
 It helps to determine the target marker which allows the business to focus on the target
efforts of the company in cost-effective manner. It is also important for defining products
and services and also helps the company understand the needs of consumers.
 It is also important for a business to create a message of the firm according to the target
audience which allows the firm to increase the chances of success of the marketing
efforts of the firm. The marketing message of the firm should be according to the
perspective of customers which will increase its impact (Qin and et. al., 2021).
 It is also important for firms in order to focus on potential and not allow them to waste
time and resources. On basis of it, businesses can also develop cost-effective strategies
which is essential for them in order to reduce the total cost of the company.
In order to identify target audience of a business plan, managers of the company can conduct
STP analysis. It is one of the marketing tool which allows firms to identify target audience of
business and also helps businesses to develop unique positioning. An explanation of this tool in
the context of new business is mentioned below:
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 Segmentation: It is a process that helps to divide the total market into different
categories based on the needs and preferences of customers. There are different segments
on basis of which a business can divide its total market. It includes demographic,
geographic, psychographic and behavioural segmentation. New business can target the
market on basis of geographic segmentation as it allow them to expand business on basis
of geographic boundaries.
 Targeting: It is another stage in which a business considers whether the target market is
reachable by the business. New businesses target the market on basis of profitability,
marketing share and size of the market (Sathiyamoorthi and et. al., 2021).
 Positioning: It is another process in which a business is developing the image of the firm
in minds of the target market. It is important in order to develop values for target
customers. It can be done on basis of USP and positioning map. There are different types
of positioning among which new businesses can adopt functional positioning as it allows
them to offer products according to requirement of customers.
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REFERENCES
Books and Journals
Jiang, Y., and et. al., 2020. Analysis and optimization of cache-enabled fog radio access
networks: Successful transmission probability, fractional offloaded traffic and
delay. IEEE Transactions on Vehicular Technology, 69(5), pp.5219-5231.
Qin, T., and et. al., 2021. Evaluating environmental impact of STP effluents on receiving water
in Beijing by the joint use of chemical analysis and biomonitoring. Science of The Total
Environment, 752, p.141942.
Sathiyamoorthi, R., and et. al., 2021. Experimental study of spray analysis for Palmarosa
biodiesel‐diesel blends in a constant volume chamber. Environmental Progress &
Sustainable Energy, 40(6), p.e13696.
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