How to select a target market for your business
Selecting the market that your business will target is the first of many crucial steps in marketing. While it may seem tempting to try to market to everyone, it is simply not practical and will do nothing but waste you time and money.
You need to find your 'niche'. The more specific and targeted what you offer the better. This is especially true when marketing online. When people are searching for something on the internet, they are typically typing in specific search phrases when they are in need of a product. For example, I was recently in need of new trim for around my garage door. I didn't search "trim" or "garage", but "garage door trim". This allowed me to find exactly what I needed. While garage door trim may not be the most popular item on earth, it is a niche item that could be used by anyone with a garage door. The company I bought it from specialized in this product and made it simple for me to find. By dominating their 'niche', they made it so price was irrelevant in my search. I found what I needed and bought it.
I became a part of this company's target market when I became in need of trim for my garage door. By specializing in this space, this company was able to capitalize on a need without breaking the bank. They didn't lure me in with billboards or TV ads, but by creating a website that drew me in by searching keywords.
Becoming a specialty business like this is a great way to target customers. Other ways to target customers are by location and demographics, such as age.
Remember it is better to be a big fish in a small pond, rather than the other way around, because the big fish will always eat the smaller fish!