By Gail Keith

For a small business owner often one of the most challenging items to define is “target market”. Think about your target market for a moment. If I asked you to tell me your target market and the first words out of your mouth were “anyone who…”,  I would cringe and know that we had some work to do. 

The more specific you can get with “who” your target is, the more likely you will tap into the vein of business that fuels your own expansion.

Although, various marketing texts define target markets in various ways – the definition that can lift a small business owner to success is:

“A target market is a group of people or companies that are large enough to be worth your time, yet small enough and interrelated enough for your reputation to precede you.”

Before reading on, reread the definition several times and commit it to memory.  It could be the difference between success and failure in the world of small business.

I recently attended a marketing course filled with various business owners and professionals.  A realtor stood up and claimed her target market was “ North Phoenix”

“ North Phoenix is your farm area” said the instructor “drill it down more.”

“ North Phoenix homes that are valued at over $200,000” added the realtor.

“Let’s get even deeper” probed the instructor.  He was clearly trying to get her to think, to ponder her business, to find a common denominator among her existing clients.

After a long pause the realtor said with uncertainty “It seems like I have a number of clients who are engineers”

“Bingo! Now that is a target market!”

North Phoenix Homes, valued at over $200,000, typically being sold or purchased by engineers or related fields. Now, that is a powerful and crystal clear target market.

For the small business owner, the “interrelated” portion of the definition of target market needs an intense amount of focus.  For example, engineers know other engineers who are in the same income level moving in and out of Phoenix . . .and thus our realtor finds herself as the “engineer’s realtor” and her business is thriving as a result.  Would she turn down a client who was in another occupation, of course not.  However, her collateral materials and her personal demeanor support the sequential mind of engineers and immediate trust and credibility is established.  Our realtor has a niche that has made her quite successful. 

Once one understands who their clients are and who those clients are likely to talk to, the marketing is easy, effective and typically quite inexpensive. 

You know, throwing darts is only fun when you have a bullseye to aim at.  Business is the same way; you have to establish your bullseye in order to aim.  Sure you might hit a few things outside the bullseyes but the more you practice hitting the bullseye the more points you get and the better you get at the game.

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