Title: Unit 2 Writing Assignment
Course: SLF 130 Marketing Practices for the Small Business > Section: SLF 130 Marketing Practices for the Small Business

Unit 2 Writing Assignment

Developing a Competitive Advantage: Meeting the Needs of Target Markets
BACKGROUND INFORMATION AND INSTRUCTIONS.

Identify an industry or product category with which you are familiar.  Identify within this group AT LEAST TWO DIFFERENT TARGET MARKET GROUPS. Then, discuss how the target market groups differ, and how successful marketers fulfill these varying needs.

For example, virtually everyone shops at a grocery store, but grocery stores have different target markets.  If you would choose the grocery industry, you could easily dissect the marketplace into three types of customer groups then answer the following questions.

What type of customers shop at high-end, specialty grocery stores that offer a wide selection and many fresh food offerings?  What competitive advantages does a high-end grocery store offer to these customers?  (Whole Foods)

What type of customers shop at the no-frills grocery stores that offer smaller selections? What competitive advantages does a no-frills, back-it-yourself grocery store offer to these customers? (Aldi’s)

What type of customers shop at the superstore groceries? What competitive advantages does a superstore grocery (attached to a discount store) offer its customers? (Wal-Mart)

If you are taking this class with the intention of starting your own business, start to analyze your potential competitors and compare and contrast what COMPETITIVE ADVANTAGES you may have over your competitors.  The completion of this assignment will be beneficial in “training your mind” to zero in on the discernment and importance of competitive advantages and how they appeal to target groups.

SPECIFICALLY DISCUSS THE FOLLOWING:

Information About Your Target Market – Narrow your target market to a manageable size. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market:

Distinguishing characteristics – What are the critical needs of your potential customers? Are those needs being met?  What are the demographics of the group and where are they located? Are there any seasonal or cyclical purchasing trends that may impact your business?

Size of the primary target market – In addition to the size of your market, what data can you include about the annual purchases your market makes in your industry? What is the forecasted market growth for this group? For more information, see the SBA market research guide for tips and free government resources that can help you build a market profile.

How much market share can you gain? – What is the market share percentage and number of customers you expect to obtain in a defined geographic area? Explain the logic behind your calculation.

Save your work in a document on your computer. Submit the completed document in the Dropbox for this unit, found on the Course Home page. (20 points possible)

WANT MORE INFO? More information about this subject can be found on the Small Business Administration website. If you are taking this course with the intention of starting your own business, you should become familiar with this website and this organization as a resource.   http://www.sba.gov/content/market-analysis