Identification and definition of Target Customer is the first and foremost step of product strategy. It can be defined as group of target customers based on geographic, industry, behavioral, socio-economic, and other such parameters. The second step is Segmentation. It is the process of dividing the market into similar sub-groups with common needs or traits. We try to segment the customers (or market) with suitable parameters that is size of customer (revenues, number of employees etc), sub-segment of customer in the supply chain of an industry (example: upstream, down stream or mid stream players) etc. The final step is to identify the segments which are most attractive for the product.

This section of the product strategy document shall include:

• Details of a typical/standard target customer envisaged for the product/IP solution. 
• Challenges/pain points of the target customers that the proposed solution is trying to address.
• Identify different Customer personas making or influencing the decisions of procurement of the product/IP solution.

Roles & Responsibilities:

Trigger/Entry Criteria:

• New Product: Business Plan approved.
• Existing Product: Specific action based on Product/IP business review & monitoring activity.

Exit Criteria:

Product Strategy Document reviewed and approved.