Identify Your Target Market

Focus on the Right People to Maximise Your Impact 

One of the most powerful ways to increase your business success is by getting crystal clear on who you’re serving. The marketplace isn’t one big melting pot—it’s made up of distinct groups of people with different values, needs, and preferences. These groups are called market segments. 

Instead of trying to compete everywhere, a smarter move is to identify your target market—the segment you’re best positioned to serve—and tailor your marketing efforts to meet their needs with your unique advantage. 

Segment First, Then Choose 

Start by dividing the overall market into segments based on things like: 

• Geographics – Where your customers are located 

• Demographics – Age, gender, income, occupation, etc. 

• Psychographics – Lifestyle, values, interests, buying behavior 

Once you’ve mapped out the different segments, choose the one(s) most aligned with your offering. This gives you the focus needed to position your product or service meaningfully. 

Choose Your Market Coverage Strategy 

There are three common approaches to targeting a market: 

1. Undifferentiated Strategy 

• Treats the whole market as one 
• Focuses on what most people have in common 
• Uses broad messaging and mass distribution 

Works well for products like salt, fuel, or soap—where customer needs are very similar

2. Differentiated Strategy 

• Targets multiple market segments, each with a tailored approach 
• Example: A clothing brand with separate lines for women, men, and children 

3. Concentrated Strategy 

• Focuses on serving one specific segment exceptionally well 
• Ideal for smaller businesses wanting a big share of a small market 

Stay Customer-Centric 

No matter which strategy you choose, always come back to your customer. Ask yourself: 

• What specific needs are we solving for our customers? 

• Which of our products or services best meet those needs? 

• Who else is serving this segment, and what are they offering? 

• How do our ideal customers prefer to buy—online, in-store, via referrals? 

Small Change, Big Impact: 
🎯 Clarity around your target market isn’t just good marketing—it’s smart leadership. Focus your energy where it matters most, and you’ll create greater value for your customers and your business.

For more small changes with impact buy the book: An Entrepreneur’s Guide: 7 Focus Areas to Align and Transform the Business 

 Lead effectively and live fully