Your target market is NOT "everybody"
I hear it all too often- small business owner's assuming their target market is everybody. If you are trying to service everybody, chances are you are going to miss or neglect your target market. You need to get clear about who your market is- we're here to help!
"But really, I want to sell my product to everybody."
No you don't. The guy on the other side of the world is not going to buy a handbag from your store unless it is extremely exclusive. Then if it is extremely exclusive there are likely other barriers to different markets- price is probably the main one.
"My market is anyone that eats- I'm a cafe."
Once again, sorry it's not. You are bound by geography, also are you a vegan cafe? Well count those vegans out. Or if you are, then your market is definitely defined by those that do not consume animal products of any type. There are also probably other factors that define your market- your opening hours, your seating, your parking, and your prices to name a few.
Defining a market helps you service it better.
If you have a clear understanding of who you are trying to service, you will without a doubt market to them better and service them better. Your marketing efforts will be more effective, saving you time and money. If you begin thinking of the exact persona you want to interact with, it is a lot easier than trying to attract every person in the world.
Realise you're selling to an individual, not a group.
While the term "target market" is great, take it a step further and imagine your ideal customer as an individual. Maybe you are a cafe owner- what individual have you designed the cafe and it's services for? Is it the perfect place for a mum to come and have a cuppa with a friend while the kids play? Or is it for business meetings? If it is for a mum- things like playgrounds and toy centres would be effective for your marketing. If it is for business meetings- wi fi access and quiet meeting areas should be part of your campaigns.
Create a buyer persona.
Expound upon the idea of an individual and write down the exact persona you want to engage with your service. Consider their motivations, goals, status, priorities, profession, marital status, parental status, finances, hobbies, behaviours- everything! Write it down and frame it. Whenever you are putting together any sort of marketing or sales efforts- target this person.