As a marketing consultant, I start any project with an understanding of who my client’s customers are. We use the term “target market” and “target customer” to identify who we are aiming at.
Seth Godin, in an interesting post, suggests another tack. He asks, “Who are we leaving out?” It’s as important, of course, to know who you are not targeting as who you are, but that wasn’t his point. He explains that, “Limiting the supply of your service, or the quantity of your product, or being aggressive in who you sell to (and who you don’t) are all time-tested ways to build a killer brand.” The niche approach is also a great way to be more profitable, at least in the short term.
When you choose to exclude a particular audience for what you offer, be intentional about it. Know who you’re leaving out and why it will be good for your business.