The term “target market” is a business term meaning the market
segment to which a particular good or service is marketed. Fair
enough.

But what does that really mean to us as business owners?

In my experience, I see that the best use of an entrepreneur’s time
is spent when they are highly focused and targeted, as opposed to
being scattered and allowing the latest and greatest thing to take
their attention. This is true for reaching goals, building a team,
defining a target market and so forth.

There are many reasons to define a narrow target market, and I will
share with you my top three.

It’s easier to stand out and be the expert in a narrow marketing
than a broad general market. Experts get more media attention, more
clients and can charge more.

You will know how and where to reach your specific audience. Being
very targeted allows you to be clear in your marketing message.
Also, it stretches even most of the most humble of marketing budgets
because by putting your business in front of the right audience,
your ROI will be much higher.

You can take the time and get to know your target market and learn
exactly what their pain is so you can craft a solution that makes
them easily say, “This is for me!”
So, how does one go about defining their target market? I have
boiled this down to three steps.

Step One: Identify specifics about your target market

This is where you go “an inch long and a mile deep” in understanding
those who you are targeting. To do that, you need to know these
important criteria:
•    Demographics – Age, gender, location of business, home, etc.
•    Psychographics – values systems, lifestyle choices (TV
shows, magazines, podcasts, etc.)
•    Position – CEO, Sales Manager, Business Owner, etc.
•    Industry – Legal, Healthcare, Service, etc.
•    Sample: Married couples between the ages of 35-50 who are
selling their home in the 300K-500K price range in Dublin, Ohio.

Step Two: Identify what you will do for your target market.

Answer these questions: What problem do you solve? What will you do
for them? Put yourself in their shoes and figure out what they need
and why. Do surveys, hold focus groups, call several people in your
target market and ask them the same questions so you can uncover the
exact needs that you can address.

Sample: I professionally stage your home so buyers can easily see
themselves living there. You sell your home faster and for the most
money.

Step Three: Define Your Process This is your methodology and how you
serve your clients.

Do you have a patented step-by-step program? A formula? A process? What is your philosophy and why?

Sample: I use a 150 point assessment for the inside and outside of
your home and provide you with the resources to do the necessary
work or coordinate the work for you.

Note that your target market will evolve over time. That’s normal
and fine. Just revisit it once a year to make sure you’re on track
and providing the right marketing message to reach your market if it
has changed.