Most new sales and business folks think of their market – that is, the people who will buy their product or service – is anyone at all. Anyone at all, given the right price or motivation, could possibly buy whatever you’re selling.
But that’s not really true. It doesn’t matter what you’re selling, there are only certain people who might buy, and even fewer for whom your service or widget will be ideal. If you’re a plumber in Austin, it’s highly unlikely that someone in Fargo will call you for that. If you own a convenience store in Columbus, it’s almost inconceivable that someone will drive out from Sante Fe to buy a soft drink.
Sometimes, like in those examples, your market is limited by distance, or proximity. Only people within a certain geographic area could buy what you’re selling. There are a million other instances of limits on your possible market. Maybe they don’t need what you’re selling. If I don’t have a dog, I won’t need to buy dog treats. If I live in a tropical climate, I won’t need a heater. That sort of thing.
A Target Market is the group of people that want or need the service or product you’re attempting to sell, where and when you’re trying to sell it. The people in your target market have the same basic wants or needs that make them possible candidates for whatever you’re selling. Almost all buildings in regions that have cold winter weather will require some sort of heating system. If you’re selling portable electric room heaters, then only a small subset of the people living or working in those buildings will have a need for those.
You want to recognize the specific group of people who could not only use, but actually purchase, what you’re selling. You want to identify what it is about them that would make them want or need what you’re selling.