When running a business, differentiating who its target market -- or who the customers are and will likely be -- is key to making sales and growing a business. The more the business knows about a target market, the greater the chances for sales.
Target markets are made up of market segments -- a group of people that share one or more characteristics such as geographical location, behaviors, gender, age, generation and socioeconomics.
Some questions to ask yourself while when defining a target market:
- Who would pay for the product or service?
- Who has already bought from me?
- Am I overestimating my reach?
- How will I sell my product or service?
- How did my competitors get started?
- How will I find my customers?
- Is there room to expand my target market?