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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?