This is such a major piece in any market plan that I cannot lay enough emphasis on the topic. I have already written a lot of posts on just this one topic , but there’s so much at stake in your plan with just this one concept that its critical that you get this right.
Some would call this segmentation, some would call it finding a niche. Call it by whatever name, the idea is to start in a minimum viable piece of the market, learn everything and then expand. Never ever try to address all segments at once.
You can segment by geography- so choose only one location to start, or you could look at a vertical industry to start with if you are in the B2B market.
One useful way to find the Single Target market is also by usage. Suppose you have a service and as an example say you decide to focus on New York City. But NYC has 9 million people. So you could then either break it down by identifying the neighborhood because different parts of NYC have different buyers in terms of paying capacity.
You could then go further down to see if your service is for first time users, or for emergency usage, or a a replacement service etc.
Once break it down to such granularity each interaction with a prospect becomes a learning and you can quickly understand and test different messaging, different media etc. so that you can quickly dominate the market.
If you are in anyway responsible for product management and going to launch a new product or service or in marketing in a similar situation first get clarity on this aspect.
Till next time then.