How to Find Your Target Market: A Guide for Small Business Owners
Updated: Oct 6
Your content doesn’t need to reach everyone. It needs to reach the right people.
If you’ve ever wondered, “How do I know who to market my business to?” you’re really asking who your target market is.
And no, the answer probably isn’t “everyone.”
Could almost anyone technically buy from your business? Maybe. But that doesn’t mean everyone is equally likely to need what you offer, value it, choose you or become a great customer.
That distinction matters.
Because good marketing isn’t just about getting your business in front of more people. It’s about understanding who you actually want to reach, what matters to them and what they need to hear from your business.
So let’s figure out who those people are.
What Is a Target Market?
Your target market is the group of people most likely to need, value and buy what your business offers.
Depending on your business, you might define that group using things like:
Location
Age or life stage
Income
Industry or job title
Business size
Needs or problems
Buying behavior
Priorities and values
But I don’t want you to stop at demographics.
Knowing your ideal customer is a 40-year-old woman who lives within 30 miles of your business might be useful.
But it doesn’t tell me why she would choose you.
And that's the part I'm much more interested in.
What’s the Difference Between a Target Market and a Target Audience?
These terms are often used interchangeably, but there is a slight difference.
Your target market is the broader group of people your business wants to serve.
Your target audience is usually the specific group you’re trying to reach with a particular message, offer or campaign.
For example, an event venue may serve weddings, corporate events, showers and parties.
Those groups can all fall within the venue’s target market.
But an Instagram Reel showing a bride getting ready in the bridal suite?
That piece of content has a much more specific target audience.
Same business. Different person. Different message.
And that’s exactly why knowing who you’re talking to matters.
Why You Shouldn’t Market Your Business to Everyone
One of the easiest marketing traps to fall into is:
“But everyone could be our customer.”
Okay. Maybe.
But should we market to all of them at once?
Probably not.
When you try to make one message apply to everybody, it can become so broad that it doesn't feel particularly relevant to anybody.
Think about the difference between saying:
We build beautiful custom homes.
and speaking to someone who has worked for years to finally build their house and doesn’t want it to feel like everybody else’s.
The first tells me what you do.
The second starts getting into why I might care.
Your marketing doesn’t need everyone who sees it to think, That's for me.
In fact, some people should scroll right past it.
They’re not who we made it for.
I’d rather have the right person stop and think:
Wait... that's exactly what I’ve been looking for.
That starts with knowing who that person is.
How Do I Find My Target Market?
You don’t have to sit down and invent an imaginary customer named “Marketing Mary” who is 37, drinks iced coffee and enjoys Pilates.
If you already have customers, you have real information you can start with.
1. Start With Your Best Existing Customers
Look at the people already choosing your business.
But don't just ask:
Who buys from us?
Ask:
Who would I happily take 20 more of?
Those are the customers I want to understand.
Think about your favorite or most valuable customer relationships and look for patterns.
Ask yourself:
What do these customers have in common?
What did they originally come to us looking for?
What problem were they trying to solve?
What did they buy?
How did they hear about us?
What questions did they ask before buying?
What mattered most when they made their decision?
Why did they choose us instead of another option?
What do they compliment us on?
What almost stopped them from buying?
You may start noticing patterns you’ve never intentionally thought about before.
That’s useful information.
2. Figure Out What They’re Actually Buying
Yes, they're buying your product or service.
But what are they really trying to get?
This is one of my favorite questions to ask when I'm thinking about marketing.
Someone hiring an IT company might technically be buying managed IT services.
But what they want might be fewer interruptions, less stress and the confidence that someone else is keeping the technology running.
Someone hiring a marketing agency is technically buying marketing services.
But what they may really want is to stop realizing at 8 p.m. that nobody marketed the business that week.
Someone building a custom home isn't just buying lumber, countertops and square footage.
They're trying to finally create the house they've been picturing.
Your service is what you sell.
The change it creates is often what your customer actually cares about.
Understanding that changes the way you market it.
3. Look at Demographics But Don’t Stop There
Demographics can absolutely help you narrow your target market.
Depending on your business, you may need to consider:
B2C businesses: age, location, income, family status, lifestyle or life stage.
B2B businesses: industry, company size, location, revenue, decision-maker role or type of organization.
But demographics only tell us part of the story.
Let's say your target customer is:
Woman, age 35–50, lives within 30 miles of Lake Charles, household income $100K+.
Okay.
Now what?
I still want to know:
What matters to her when she's choosing a business like yours?
What frustrates her about the alternatives?
What makes her hesitate?
What would make her feel confident choosing you?
What finally causes her to stop putting the purchase off?
What does she need to understand first?
What is she actually hoping will be different afterward?
You aren't marketing to a demographic on a spreadsheet.
You're marketing to a person making a decision.
4. Listen to What Your Customers Are Already Telling You
Some of your best target-market research may already be happening inside your business.
Pay attention to:
Questions customers repeatedly ask.
If everyone asks the same thing, that tells you something they need to understand.
Things customers are surprised to learn.
There may be a gap between what you think people know about your business and what they actually know.
Compliments and reviews.
What customers value about you may not be the same thing you assumed made you different.
Sales conversations.
What are people concerned about before they say yes?
Objections.
Price? Timing? Trust? Confusion? Fear of switching? Not understanding the value?
DMs, emails and comments.
Pay attention to the actual words people use to describe their problems and what they’re looking for.
Your customers are constantly giving you information.
Listen to it.
5. Decide Who You Actually Want More Of
Here's an important distinction:
Your target market doesn't have to be identical to everyone currently buying from you.
Where is the business trying to go?
Maybe you're known for one service but trying to grow another.
Maybe you're moving into a higher-end market.
Maybe you're adding a new location.
Maybe one type of customer is more profitable.
Maybe your business has evolved, but your existing customer base still reflects what you looked like five years ago.
So don't only ask:
Who currently buys from us?
Also ask:
Who do we want buying from us next?
Your target market should make sense for the business you're building not just the business you've already built.
6. Find the Gap Between Where They Are and Where They Want to Be
Now we're getting somewhere.
Think about your target customer in two places.
WHERE THEY ARE NOW
What are they dealing with?
What are they frustrated by?
What don't they understand?
What are they putting off?
What isn't working?
WHERE THEY WANT TO BE
What outcome do they want?
What would make their life or business easier?
What are they hoping to accomplish?
What would make them feel like buying from you was worth it?
Your business sits somewhere between those two places.
Your marketing should help them see that.
This is where understanding your target market becomes much more useful than simply knowing their age.
7. Put Your Target Market Into One Clear Statement
Now take everything you've learned and try to explain your target market simply.
You can start with:
We want to reach [WHO] who are [CURRENT SITUATION/PROBLEM] and want [DESIRED OUTCOME] because [WHY OUR BUSINESS IS RELEVANT].
It does not need to sound pretty.
This isn't your tagline.
It's something your business can use internally to make better marketing decisions.
B2C Example
We want to reach homeowners in Southwest Louisiana who are ready to build a high-end custom home and want more control over the design, details and finished result.
B2B Example
We want to reach growing local businesses that know marketing matters but don't yet have someone internally whose job is to strategically manage it.
Now I know considerably more about who we're trying to reach than:
“Small businesses.”
And I can make much better marketing decisions because of it.
You are probably wondering these questions at this point...
Can My Business Have More Than One Target Market?
Absolutely.
You may have multiple customer groups that matter to your business.
An event venue might market to:
Brides
Corporate event planners
Families planning celebrations
Community organizations
A construction company might work with:
Custom-home clients
Remodeling clients
Commercial clients
The problem isn't having multiple audiences.
The problem is trying to talk to all of them at the same time, in the same way, with the same message.
Different people care about different things.
Your marketing can reflect that.
How Specific Should My Target Market Be?
Specific enough to help you make decisions.
Not so specific that you've invented a fictional human who represents approximately three people in Louisiana.
Knowing your target market should help you answer questions like:
What matters to this person?
Where are they likely to find us?
What do they need to understand?
What might stop them from buying?
What would make our business relevant to them?
What action do we want them to take?
If defining your audience isn't helping you make better marketing decisions, you probably need to go deeper than demographics or pull back from details that don't actually matter.
How Do I Know If I’ve Chosen the Right Target Market?
Your target market shouldn't just sound good on paper.
Look for evidence.
Ask:
Are these people actually buying what we sell?
Is there a real need for what we offer?
Can we realistically reach them?
Do they value the things that make our business different?
Are they profitable customers for us?
Do our best existing customers fit this group?
Does this audience align with where we want the business to grow?
And remember: your target market can change.
Businesses evolve.
Customers change.
New services launch.
Markets shift.
Who you're trying to reach today may not be exactly who you're trying to reach three years from now.
That's okay.
Your marketing strategy should evolve with the business.
Your Content Doesn’t Need to Reach Everyone
More reach isn't automatically better marketing.
More followers aren't automatically better customers.
And making something broad enough for everyone to relate to doesn't automatically make it more effective.
Sometimes good marketing means being specific enough that the wrong person scrolls right past it.
That's okay.
Because they weren't who we made it for.
I'd rather have the right person see your business and think:
This is exactly what I've been looking for.
So before you ask:
“What should we post?”
Ask:
“Who are we trying to reach?”
That answer should come first.
FREE Target Market Worksheet for Small Businesses
Find Your People.
Still thinking:
Okay... but who exactly am I marketing to?
I made you something.
The Find Your People: Modish Target Market Worksheet walks you through the questions I want small businesses thinking about not just age, income and location, but who your best customers are, what they're trying to accomplish, what matters when they buy and why they choose you.
DOWNLOAD THE FREE TARGET MARKET WORKSHEET
Free PDF download. No marketing degree required. 😂
Know Who You Want to Reach. Now What?
Figuring out your target market is an important first step.
But knowing who you're talking to is different from knowing what to say, where to say it and what marketing tools actually make sense for your business.
That's where strategy comes in.
At Modish Media, I get to know the business first, what you're trying to grow, what your customers care about, what they currently know about you and what needs to change.
Then we figure out the marketing.
Strategy First. Always.
Frequently Asked Questions About Finding Your Target Market
What is a target market?
A target market is the group of people most likely to need, value and purchase what your business offers. It can be defined using characteristics such as location, demographics, needs, buying behavior, industry, life stage and other factors that influence whether someone is a good potential customer.
How do I know who to market my business to?
Start with your best existing customers. Look for patterns in who they are, why they came to you, what problem they needed solved, what mattered when they made their decision and why they ultimately chose your business. Then compare those patterns with the types of customers your business wants to attract in the future.
How do I identify my target audience?
Identify the specific group you're trying to influence with a particular marketing message. Consider what they need, what they care about, what questions or objections they may have and what action you want them to take. Your target audience may be one smaller segment within your broader target market.Identify the specific group you're trying to influence with a particular marketing message. Consider what they need, what they care about, what questions or objections they may have and what action you want them to take. Your target audience may be one smaller segment within your broader target market.
What is the difference between a target market and a target audience?
A target market is the broader group of customers a business wants to serve. A target audience is usually the more specific group a particular advertisement, piece of content, campaign or message is designed to reach.
Can a small business have more than one target market?
Yes. Many businesses serve several types of customers. The important part is recognizing that different customer groups may have different needs, priorities and buying motivations, so every marketing message does not need to speak to every audience at once.
Should I market my business to everyone?
Usually, no. Even if many different people could purchase from your business, trying to make every marketing message appeal to everyone can make your messaging too broad. Focus on the people most likely to need, value and choose what you offer.
What if I don't know who my ideal customer is yet?
Start with the information you do have. Look at current customers, competitors, inquiries, sales conversations, reviews and the people showing interest in your business. If you're new and don't have much customer data yet, your initial target market can be a hypothesis that you continue refining as you learn who actually buys.
Is a target market the same as an ideal customer?
They're related, but not exactly the same. Your target market describes a broader group of potential customers, while an ideal customer is typically a more specific description of the type of customer who is especially well suited to your business.
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