It is also very important to select the target audience to have enough target buyers to sustain your companies’ sales, and profits every year. Selling a product or service that people need only in a life time may be a unsuccessful business, unless a large number of clients need it at any given time.

Generally, the market can be divided into segments based on a great number of factors: you might divide up your customers by age group and find that you sell most of your products to people aged 18 to 34. You can divide them up by economic status and find that you sell most products to people with an annual income of about $50,000. You might divide your potential customers by geographic location and find that you sell most of your products to people living in big towns.

Many can stop here, but some are making attempts to push on further and find out even more information about their customers’ lifestyle, values, life stage, and so on..