e–CommerceAdvi$er.com

For Small Businesses and Home Based Businesses

E-Commerce Business Plan -- Topics
1. Introduction 4. Competitive Analysis
2. Product Analysis 5. Financial Analysis
3. Market Analysis 6. Implementation Plan
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E-Commerce Business Plan

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Market Analysis


by Maggi Hall, E-Commerce Adviser staff (rev022708)

Factors for Success

E-Commerce Market Analysis



If you know and understand your target market, you're ahead of many small businesses.

Understanding the target market is the key to:
  1. A more effective marketing strategy, which can increase website traffic and conversion

  2. A more focused product positioning, which can differentiate you from the competition
Google's Adword Keyword Tool is a great resource to fine tune keywords for your target market. It provides information on search frequency and keyword competition. (See Google Tools)

An E-Commerce Market Analysis is a critical part of e-commerce success. That is,
  1. An E-Commerce Market Analysis defines the characteristics of the target market
  2. An E-Commerce Market Analysis serves as a basis for developing a sales and promotional strategy
  3. An E-Commerce Market Analysis influences the e-commerce website design

Target Market



A target market is the segment of the population to which you intend to sell products and services. A target market is delineated by its characteristics and opportunities, including:
  • Demographics: age, sex, profession, income, education
  • Geographics: climate, urban/rural
  • Technology: platforms, usage (e.g. texting, social e-commerce)
  • Growth Potential: new product opportunities, competitive challenges

  • Sample Target Market Data -- This data is not something you would
    generate, but something you would research.

    Demographic Profile of US Internet Users Who Visit Videos/Movies Web Sites, October 2007 (thousands of unique visitors and % of total audience)

Promotional Strategy



An e-commerce promotional strategy might include traditional promotions techniques, such as magazines, television and radio campaigns, as well as online promotion techniques, including:
  • Search Engine Optimization: Technique to increase website traffic from search engines
  • Backlinks: Links to your web pages on websites, which are relevant to your website
  • Word-of-Mouth: Blogging, emailing, any type of informal communication spreading the word about your e-commerce website
  • Pay-Per-Click: Sponsored search page links, such Google Adwords and Yahoo Search Marketing
The marketing budget generally determines the specific campaigns. However, the specifics of the promotions are determined by the target market.

Website Design



Just as a "brick and mortar" store should have a decor that reflects your business image and appeal to your target market, so should your e-commerce store. The layout and functionality need to work with the products and the typical website visitor.

One factor that is unique to e-commerce is the significance of the technology used to build your store. Some technologies are not "search engine friendly." So, you need a design that creates the image you want without using a technology that sacrifices your search engine optimization efforts.

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