10.2.1 Does a Viable Target Market Exist?

For this activity:

You will need access to The Internet and to write down your answers in your Mahara e-portfolio

In this theme we have learned that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.  

Sometimes firms will identify an opportunity for a new product and then work out whether a viable target market exists. This situation has occurred for the two firms listed below. In each case, do you think that they could find a viable target market? 

Firm One - 'Slow Grow' 

We offer lawn-mowing and gardening services. On average, we mow a customer's lawn once a month - for an average £80 fee (around £1,000 pa.) 

However, there are some potential customers who really don't care about their lawn and garden - it's more of a nuisance for them. Therefore, we have a potential service for them. It's called the "Slow Grow" lawn service. 

Basically, we would only need to visit them once every three months only, and we use some chemicals that make the lawn a 'bit sick' and remove and long grass. This means that their lawn won't look so great - but it won't grow well either, which means less maintenance and less cost for them. 

Because we only visit the customer quarterly, the annual cost to them to maintain their lawn is only $200 – which is a big saving over the $1,000 annual cost of our full service. 

Firm Two - 'King and Queen for a day!' 

We send five people to your house for a day to pamper you completely. Breakfast in bed - facials, nails, massage - gourmet lunch - afternoon nap. 

All while we take care of the kids and tidy your house. 
Ideal for wedding anniversaries, St Valentine's Day and other special occasions. 

Priced at $1,000 - but compared to a weekend away – it’s great value!