Entrepreneurship Assignment Question 1 (2000 words) Breaking up the market into segments by the Entrepreneur can be the - Essay Example

Download file to see previous pages Table of Contents Executive Summary 2 Introduction 4 Literature Review 5 Critical Analysis 7 Conclusion 10 Reference List 11 Introduction The early definitions of entrepreneurship given by economist are seen to emphasize on risk, ownership, supply of financial capital and co-ordination of various factors. However, entrepreneurship is seen as the efforts made by an individual that goes against every odds towards converting a vision into successful business enterprise. Entrepreneurship is the search for some discontinuous opportunities that are involved towards creation of an organization or sub organization in the expectation of creating value for the participants. Entrepreneur is a person or a group of individuals who identifies opportunities, collects necessary resources and makes effort towards the performance of the organization (Gungaphul and Boolaky, 2009). In order to make a business venture successful the entrepreneurs need to choose a proper target market (Crane, 2007). Target market is defined as the specific group of customers towards whom the marketing effort created by the firm is directed. It is selected as a part from the whole market. Defining the target market correctly is a critical element in creating a successful marketing strategy. It may be a disaster if marketing plans are made to cater to wrong target customers. Employees and manager are seen to focus on providing value to the well-defined segment of target customers (Gitman and McDaniel, 2008). Entrepreneurs with exciting ideas and innovative product and services often forget about focusing towards right customers. This study focuses on critical analysis of the importance of choosing right target market for success of entrepreneurs. Literature Review Defining target market Business firms and entrepreneurs tempted to describe the target in the broadest and best possible way in which they look for including a large set of customers who can be huge potentials in using the services and products. By doing this they get a huge comfort by the sense that they have a huge market to exploit. But in reality this is seen to provide very little genuine information based on which business decisions will be made. This insists the need for identifying a particular market segment that would provide a more exact description of distinct and meaningful components of the overall market which in turn helps in identification of target market of the business based on certain specific characteristics (Abrams, 2003). However, while defining the target market certain criteria needs to be met, like it needs to be definable which signifies that specific characteristics should be identified based on the requirement and needs of the customers that are in common. It has to be meaningful, which signifies that the characteristic should be as such that it is related to the decision of purchase made by the clients. The target market needs to be sizable which signifies that the target market needs to be large enough so that it can help the profitably sustain in the market (Barringer and Ireland, 2008). The target market should be reachable which signifies that the size and definition should be as such ...Download file to see next pagesRead More