Title: Competency Assessment: (CU2 M1) Market Segmentation
Course: SkillsCom BA 260 15.0 > Section: Credit Unit 2 Module 1- Essential Venture Research

This Competency Assessment is split into two segments. For both segments, you will be using the business idea that you developed in Credit Unit 1.

Part A: Customer Profile

Refer to the table below and follow the instructions stated in the Customer Profile column on the left side of the table. Examples are provided in the right hand column. Answer the questions listed on the left side of the table while applying them to your own business idea.

Note: Are there enough customers of your intended demographic to sustain your business? Use the US Census population figures to find out. Look at population by gender, age, income, education, etc., at www.census.gov (Webpage) for the area where you intend to trade.

Customer Profile: 1. In your opinion, what is the typical customer for your business idea? | Example: Customer: A skateboarder
2. Is your product/service gender specific? Although both genders might use the product, does one gender favor it over the other gender? | Although there are female skateboarders, skateboards are primarily used by males.
3. Is your product/service age specific? Which age group typically might buy the product?(Keep in mind that you should not turn away customers who do not fit the age profile.) | Skateboarders primarily fall between the ages of 14 - 26 years old.
4. Is your product/service sensitive to income level? Which income range typically might buy the product? (Keep in mind that you should not turn away customers who do not fit the income range.) | Individuals between 14 - 26 years old are just entering their earning years, with little to no budgeting or workplace skills, and could be impulsive to buy beyond their means. Perhaps a low - moderate income level.
5. Where do the typical customers live? This could be a town, city, or housing areas within multiple locations defined by social class e.g projects, gated communities. Make sure you are able to reach and serve this geographical area. | Skateboarders live nationwide, although a new producer might be limited in the geographic area it can serve due to its limited reach and lack of reputation.
6. What is the education level of the typical customer? | High school/4 year college but not usually post graduate yet.
7. Is their lifestyle relevant to the product? | Perhaps into a skater lifestyle - risk taking, loyal to skateboarding, dress style.
8.  Any other characteristics of the typical customer? | The customer (buyer) might not be the consumer (the skater). This means, often, a skateboard could be purchased by a different type of customer (e.g. parent who is older than the skater) as a gift to the typical consumer.

Part B: 4 P's of Marketing Analysis

You are now going to apply a simple concept called the 4 P’s of marketing to your business or product/service. The four P’s (in bold below) help tailor the business or product/service to the typical customer using four considerations.

- Product characteristics
- Place where it is available
- Price(s)
- Promotional methods

Keeping in mind the typical customer of your business/product, address each of the following aspects in your application of the 4 P's concept:

1. How will the features of your Product or business be tailored to the typical customer?

2. Identify the Places where the business/product can be seen, used, or is sold to the typical customer. Are your places designed with the typical customer in mind? Think about details such as decor, background music, color scheme, fixtures, and fittings. Be sure to include the data you collected from the US Census (www.census.gov) that helped you determine whether there is need and/or demand based on the customer profile you just prepared.

3. Outline the Price(s) of the product/services of the business and how they are suited to the typical customer. Do you plan on creating different price points to reflect the product’s/service’s affordability and quality? Will there be discounts or payment plans to encourage affordability?

4. Describe the methods of Promotion and the style of advertising, including the media you plan to use. Consider packaging and labeling under this category and how they will be tailored to the typical customer.