Identifying potential target markets

Downloadable versions of this lesson are available in the following formats:

(Text (rtf), PDF)

Overview

This lesson will enable students to identify the demographic, geographic and socio-economic characteristics of potential target markets for planned goods and services. Students will use Community Profiles on Statistics Canada's Learning resources website to identify and compare different markets.

Contributors: Sadie Campbell, Toronto District School Board and Sandra McIntyre, Statistics Canada.

Objectives

On completion of this lesson, students will be able to:

1. explain the terms "target market" and "market segment" and the difference between them;
2. access Statistics Canada's Community Profiles and research population characteristics of two selected Canadian communities;
3. locate data for these communities, for example on age groups, languages, income levels,  number of immigrants;
4. use tables to view and analyse census data;
5. draw conclusions from the data that will allow them to develop a market profile.

Suggested courses

Business Studies, Entrepreneurship, Marketing

Materials

• Teacher's computer with overhead projector
• Student computers with access to the Internet
• Calculators
• Activity sheets:
  • Activity 1: Defining an ideal target market (Text (rtf), PDF)
  • Activity 2: Using Community Profiles (Text (rtf), PDF)
• Evaluation rubric (Text (rtf), PDF)

Vocabulary

The following definitions are for use in the context of this activity.

Demographic statistics: These provide descriptive data about the population of a specific geographic area or about a particular group within the population (e.g. immigrants).

Market: A market is a geographic area or a group of individuals or businesses that creates demand for goods or services. It can be local, national or international.

Market segmentation: Market segmentation is the process of dividing groups of individuals or households into smaller submarkets, called segments. These segments identify people who may share similar attitudes and values, for example, seniors, home owners or high income earners.

Target market: The primary geographic area or group of customers to which a business directs its products or services is its target market. Demographic statistics from the 2006 Census provide valuable information that helps identify target markets.

Labour market: In a labour market, workers compete for jobs and employers compete for workers. The 2006 Census provides information for local labour markets (cities, towns and villages), such as the number of unemployed and the number of people employed by type of industry and occupation.

Classroom instructions

Starting with students' understanding of the term "market," lead a discussion that will help them grasp the terms "target market" and "market segment." Explain that the purpose of the lesson is to develop a target market profile for a bookstore and to determine whether a particular community would be a suitable location for the store. To introduce the activities, lead a general discussion about the needs and wants that bookstores satisfy.

Activity 1: Students will develop a profile of the ideal target market for a bookstore by answering a list of questions. They will define the intended customers for their products or services and estimate the amount they might spend.

Activity 2: Using Community Profiles, students will select two communities in their region (one small and one large community). They will gather data on the characteristics of the potential target market for a bookstore in these communities (such as age group, immigrant status, languages spoken or income level).

Evaluation

You can assess Activity 1 by observation. For the first part of Activity 2, you can give students a mark out of five (5). For the second part of Activity 2, you can use the evaluation rubric provided.

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