How to Identify Your Ideal Target Market

By Mazuki Last updated Oct 30, 2025 20 0

If you’ve ever felt like your marketing doesn’t seem to “stick,” even though your product is great — you’re not alone.

Many small business owners and entrepreneurs struggle because they haven’t clearly identified who their ideal customers really are.

This article is based on one of the most practical marketing books ever written — The 1-Page Marketing Plan by Allan Dib.

In his book, Dib emphasizes that successful marketing starts before you spend a single dollar on ads or social media. It begins by understanding exactly who you’re speaking to.

Dib explains that the first step of any marketing plan is to choose your target market — the group of people you want to serve best. He puts it bluntly:

“Trying to sell to everyone means selling to no one.”
— Allan Dib, The 1-Page Marketing Plan

In this guide, we’ll walk you through how to identify your ideal target market using proven frameworks from Dib’s approach — including the famous PVP Index, step-by-step exercises, and real-world examples.

📘 This content is inspired by and referenced from The 1-Page Marketing Plan: Get New Customers, Make More Money, and Stand Out from the Crowd (Successwise, 2016).

If you haven’t yet, we recommend reading the pillar article first:
🔗 Selecting Your Target Market – The Foundation of Smart Marketing

Why Identifying Your Target Market Is the First Step of Any Marketing Plan

In The 1-Page Marketing Plan, Allan Dib divides marketing into three phases:
1️⃣ Before — where you identify and attract prospects.
2️⃣ During — where you convert them into customers.
3️⃣ After — where you nurture them into loyal fans.

The Before phase starts with one crucial square on the plan: “Selecting Your Target Market.”

Your target market determines almost everything — the tone of your message, your ad channels, the kind of offer you make, even your pricing model. Without clarity here, you end up wasting time and money talking to people who were never meant to buy from you.

Dib explains that many small businesses try to cast a wide net, thinking that a bigger audience means more sales. But this is a dangerous illusion. In reality, a smaller, focused audience that truly connects with your product will outperform a general audience every single time.

Let’s use an analogy Dib shared:

“A 100-watt light bulb can light up a room. But a 100-watt laser can cut through steel.”

That’s the difference between broad marketing and focused marketing. The more focused your energy, the stronger your impact.

For example, imagine two businesses:

A general beauty salon for everyone.
A postpartum cellulite-treatment clinic for new mothers.

Both offer beauty services. But the second one speaks directly to a specific pain point, builds deeper trust, and can charge higher prices — because it’s perceived as a specialist.

So, before thinking about your logo, your ads, or your website — stop and ask:

“Who exactly am I trying to reach, and why should they care?”

The Power of Niche — Why Narrow Focus Beats Broad Marketing

One of the strongest lessons from The 1-Page Marketing Plan is that niching down is not about limiting your business. It’s about creating a sharper, more profitable focus.

Many entrepreneurs fear that choosing a niche means missing out on potential customers. But in reality, narrowing your focus makes your business magnetic. People trust specialists. They pay more for expertise.

Think about it this way:
Would you rather see a general doctor or a heart specialist if you have chest pain? The specialist wins — not because they can treat more people, but because they understand one type of person deeply.

The same applies in business. A niche doesn’t make your audience smaller — it makes your message stronger.

Dib even suggests asking yourself:

Which segment of people do I enjoy serving the most?
Which group finds the most value in what I offer?
Which group can afford to pay for my solution?

These are the same three questions that form the foundation of the PVP Index, which we’ll dive into next.

But before that, here’s a key insight Allan Dib shares that most people overlook:

“You don’t get paid for working hard. You get paid for solving problems for people who value your solution.”

So, finding your ideal market isn’t just about demographics like age or income. It’s about alignment — matching your solution to the people who value it most.

To outsmart big brands, you don’t need a massive budget. You need sharper positioning. Niching allows you to dominate small, profitable markets that large corporations ignore.

That’s how small players outperform giants.

The PVP Index — Your Shortcut to Finding the Ideal Target Market

Allan Dib credits Dr. Frank Kern for inspiring the PVP Index framework — a simple yet powerful way to determine which customers you should focus on.

The idea is to rate your potential target markets based on three criteria:

Criteria	Description	Question to Ask
P – Personal Fulfillment	How much do you enjoy serving this market?	“Do I feel excited when I help this type of customer?”
V – Value to the Marketplace	How much do they value what you offer?	“Do they truly appreciate my skill or solution?”
P – Profitability	How profitable is this market?	“Can I make good margins from this group?”

Each criterion is scored from 1–10. The higher the combined total, the closer you are to your ideal target market.

Example:

Market Segment	Personal Fulfillment	Value to Market	Profitability	Total (PVP)
Corporate clients	6	9	8	23
Small business owners	9	7	6	22
College students	7	5	4	16

From this, you might realize that even though corporate clients are slightly less enjoyable, they bring higher profit and appreciation — making them your best target market overall.

This simple scoring exercise gives you clarity. Instead of guessing who to serve, you quantify your decision.

Dib suggests using this tool regularly, especially when your business evolves. Markets change. What’s profitable this year may not be next year.

He also reminds marketers to avoid one critical mistake:

“Don’t choose a market just because it’s easy to reach. Choose it because it’s worth reaching.”

Once you’ve identified your top segment using the PVP Index, the next step is to refine that segment further — by defining your Ideal Customer Avatar, which we’ll cover in the next article.

For now, you should have a clear understanding of which markets truly deserve your time, attention, and budget.

🔗 Continue reading: 7 Questions to Define Your Perfect Customer

Step-by-Step: How to Identify Your Ideal Target Market

Now that you understand the concept behind focus and the PVP Index, it’s time to put everything into action.
Allan Dib emphasizes that identifying your ideal market isn’t just a “thinking exercise” — it’s a strategic process you can repeat as your business grows.

Here’s how to do it step by step 👇

Step 1: List All the Customer Segments You Currently Serve

Start by writing down every type of customer you’ve worked with — even if they seem unrelated.

For example, if you’re a web designer, your clients might include:

Local café owners
Freelancers
Real estate agents
E-commerce entrepreneurs

At this stage, don’t judge. Just list them all. You’ll analyze them later using the PVP framework.

This exercise helps you realize that your current “market” might actually be a mix of mini-markets. Once you see them on paper, you can start noticing patterns — who pays on time, who’s easy to deal with, who brings referrals, and who drains your energy.

Step 2: Evaluate Each Segment Using the PVP Index

Next, use the PVP Index from the earlier section to score each group.

Segment	Personal Fulfillment	Value to Market	Profitability	Total
Café owners	9	7	6	22
Freelancers	7	5	4	16
Real estate agents	8	9	8	25
E-commerce sellers	6	8	9	23

From this, you might discover that real estate agents give you the best balance of enjoyment, appreciation, and profit. That’s a huge insight.
It means you could start tailoring your entire brand around that segment — your messaging, website examples, and case studies could all be designed for real estate professionals.

This single decision could multiply your conversion rate without spending a cent more on ads.

Step 3: Identify Your Most Profitable and Enjoyable Customers

After scoring, look at your top two or three markets.
Who are the clients you love working with — and who love working with you?

These are your “sweet spot” customers.

Ask yourself:

What do they have in common?
What problems do you solve for them that others can’t?
What results have they achieved because of your product or service?

Document these traits — because they’ll form the foundation of your Customer Avatar later.

Remember, profitability doesn’t only mean money. Sometimes your most profitable clients are those who stay longer, refer others, or require less maintenance.

Step 4: Decide Who You Want to Exclude

This part may feel uncomfortable, but it’s essential.
As Allan Dib puts it:

“Deciding who your customer isn’t is just as important as deciding who your customer is.”

When you say yes to everyone, you dilute your brand.
By clearly excluding certain groups, you actually become more attractive to the ones who matter.

For example:

A fitness coach might say: “I don’t train bodybuilders — I specialize in busy moms over 30.”
A marketing agency might say: “We don’t work with startups — we serve established service businesses ready to scale.”

Exclusion creates clarity. Clarity builds authority.

Step 5: Validate and Revisit Your Market Regularly

Finally, don’t assume your ideal target market will stay the same forever.
Market dynamics change. Consumer behavior evolves. Technology disrupts entire industries overnight.

Allan Dib recommends revisiting your PVP analysis every 6–12 months.
Ask yourself:

Are these still my best customers?
Has the market grown or shrunk?
Are there new opportunities or underserved niches emerging?

Real marketing pros treat this as a living process — not a one-time checklist.

Pro Tip:

If you’re unsure whether your chosen niche is profitable, use simple online tools:

Google Keyword Planner – see how many people search for your niche.
Facebook Audience Insights – check interests and audience size.
Reddit or Quora – read real discussions from your target community.

Combine this data insight with your PVP intuition — that’s where real marketing clarity happens.

Real-World Examples: Ideal Target Market in Action

Let’s bring these principles to life with a few examples — including one directly from The 1-Page Marketing Plan.

Example 1: The General Photographer Who Became a Wedding Specialist

In his book, Allan Dib tells the story of a photographer who struggled to make consistent income.
He offered everything: portraits, baby photos, events, graduation, corporate shots — you name it.
He was good at his craft, but clients saw him as “just another photographer.”

One day, he decided to niche down and brand himself as a specialist wedding photographer.
He focused only on couples who wanted luxury, storytelling-style wedding photography.

Within months:

His prices tripled.
He booked months in advance.
His reputation spread — not because he got better at photography, but because he became clearer about whom he served.

That’s the power of identifying your ideal target market.

Example 2: The Fitness Coach for Postpartum Mothers

Let’s take a modern-day example.

A fitness trainer used to market herself to “anyone who wants to lose weight.”
Her ads didn’t work well — they were too generic.

After researching using the PVP Index, she realized she loved helping new mothers regain confidence and energy after childbirth.
She redesigned her brand as:

“Postpartum fitness coaching for moms who want to feel strong again.”

Now her Instagram bio, content, and testimonials all spoke directly to this audience.
Her engagement skyrocketed — not because she spent more money, but because she found alignment between message and market.

Example 3: Local Café Consultant

A marketing consultant once struggled to find consistent clients.
He worked with everyone — online stores, real estate, corporate clients, small shops.

But his favorite projects were helping independent cafés improve their branding and online presence.
He started creating templates for café menus, ran ads targeting café owners, and wrote blog posts titled “How Local Cafés Can Compete with Starbucks.”

Soon, he became the go-to guy for café branding.
He didn’t just get more clients — he got better clients.

That’s the magic of niche clarity: less noise, more trust, higher revenue.

Common Mistakes When Identifying Your Target Market

Even with the best frameworks, many entrepreneurs fall into classic traps.
Let’s explore a few so you can avoid them early.

1. Being Afraid to Narrow Down

Fear of missing out (FOMO) is real. Many entrepreneurs worry that choosing one target market means rejecting money from others.

In reality, focusing doesn’t exclude opportunity — it amplifies it.
When you dominate one niche, other people outside that niche will still come to you because of your authority.

2. Confusing Demographics with Psychographics

Many people stop at “My target audience is women aged 25–40.”
That’s not enough.

Demographics tell you who they are.
Psychographics tell you why they buy.

For example:

Demographic: Female, 30, lives in Kuala Lumpur.
Psychographic: Ambitious entrepreneur, overwhelmed by digital marketing, looking for clear guidance.

See the difference?
One describes a statistic; the other describes a story.

Allan Dib constantly reminds readers that great marketing messages always speak to psychology, not just data.

3. Ignoring Real Customer Data

Many businesses guess who their audience is — instead of looking at real patterns.

Look at your past:

Who bought the fastest?
Who paid the most without bargaining?
Who referred others to you?

Those people reveal who your true market is.
Your data already holds the answer — you just have to look.

4. Refusing to Evolve

The market that worked in 2020 may not work in 2025.
If your target market no longer feels exciting, or your message no longer resonates, it’s time to reassess.

Remember Allan Dib’s advice:

“Marketing isn’t about locking in a plan forever. It’s about learning faster than your competitors.”

Your target market evolves — and so should you.

✅ Up Next: In the final part, we’ll combine everything you’ve learned and build your Ideal Customer Avatar, the next logical step in the 1-Page Marketing Plan process.

🔗 Continue: Creating Your Ideal Customer Avatar (Step-by-Step)

Putting It All Together — Build Your Customer Avatar

Once you’ve gone through the PVP Index and clarified who brings you the most joy, value, and profit, it’s time to make that clarity visible.
This is where you translate your analysis into something you can see and feel — your Ideal Customer Avatar.

An avatar isn’t a random demographic list. It’s a story about one person who represents your perfect customer.
When you can describe them so clearly that it feels like you’re talking to a real individual, your marketing becomes 10× more effective.

1. Give Your Avatar a Name and Face

It might sound silly, but naming your avatar makes them real.
Allan Dib and other marketing experts like Frank Kern recommend treating your avatar like a real human being — someone you could have coffee with.

Example:

“Sarah, 32 — Busy café owner in Kuala Lumpur.”
She runs a small coffee shop, struggles to manage staff and marketing, and feels her business has plateaued. She checks Instagram daily, follows café trends, and values honest communication.

When you write a post, an email, or an ad, imagine you’re speaking to Sarah.
Every word, every offer, every visual becomes more focused — and more human.

2. Define the Demographics — But Don’t Stop There

Demographics are the skeleton of your avatar.
They help you define the basics:

Attribute	Example
Age	25–40
Gender	Female
Location	Kuala Lumpur
Income	RM5,000–RM10,000
Education	Diploma or higher
Profession	Café Owner / Freelancer / Entrepreneur

But don’t stop here.
These stats alone won’t tell you what motivates them to buy.
To really know your audience, you need to go deeper.

3. Understand Their Psychographics — The Real Gold

Psychographics are what transform marketing from noise into connection.

Ask these questions:

What keeps them awake at night?
What are they afraid of?
What frustrates them about current solutions?
What dreams or goals are they chasing?
Who do they want to become after using your product or service?

For example:

“Sarah worries her café will fail because she can’t attract regular customers. She feels guilty that her team isn’t motivated. Her dream is to make her café the go-to brunch spot in her city.”

When you understand this, you can write copy that speaks directly to her soul — not just her wallet.

4. Identify Their Buying Journey

Allan Dib reminds us that prospects are not all at the same stage.
Some are “cold” (they don’t know you yet), some are “warm” (they’re researching), and some are “hot” (ready to buy).

Knowing this helps you tailor your marketing message accordingly:

Cold: Educate and build awareness.
Warm: Provide proof, case studies, and authority.
Hot: Offer urgency, clear pricing, and next steps.

By mapping where your avatar is in this journey, you can meet them with the right message at the right time.

5. Use Real Data to Validate Your Avatar

Don’t guess. Use real-world insights.
Check your:

Google Analytics – see who visits your site and where they come from.
Facebook/Instagram Insights – look at follower demographics and engagement.
Customer feedback – review comments, emails, and testimonials.

Compare this data with your avatar profile.
If there’s a mismatch, update your avatar.
Marketing is not static — your audience evolves, and so should your understanding of them.

From Avatar to Action — Apply It in Your Marketing Plan

Now that you’ve identified your ideal market and avatar, let’s connect it to the 1-Page Marketing Plan structure.

In the book, Allan Dib divides his 9-box framework into three phases:

Phase	Focus	Key Question
Before	Target Market & Message	Who do you serve, and what’s your message?
During	Lead Capture & Conversion	How will you attract and nurture leads?
After	Customer Experience & Referral	How do you deliver value and get repeat business?

Your target market lives in the first square — it shapes everything else.

If you get this wrong, the other eight squares will fail.
If you get it right, your marketing message will cut through the noise like that 100-watt laser we mentioned earlier.

Here’s how your avatar affects every stage:

Marketing Step	Impact of Clear Target Market
Branding	Consistent tone, visuals, and promise
Messaging	Emotional connection, clarity
Offers	Tailored solutions instead of generic promotions
Pricing	You can charge more as a specialist
Ad Targeting	Lower cost-per-click and higher conversions
Retention	Better customer satisfaction and referrals

When everything aligns around your ideal customer, you stop chasing leads — and start attracting believers.

Practical Exercise: Create Your Own Target Market Profile

Try this mini exercise today:

Write down 3–5 types of customers you’ve served.
Score them using the PVP Index (1–10 scale).
Pick your highest-scoring segment.
Write a 100-word story describing your “Sarah” (your avatar).
Answer these three questions:
- What do they want most?
- What frustrates them the most?
- What would make them say, “That’s exactly what I need”?

If you can answer those questions, you’re already ahead of 90% of small businesses out there.

Common Mistake: Treating Target Market as a One-Time Setup

Many entrepreneurs think once they’ve filled out their marketing plan, they’re done.
But the market moves fast.

New competitors appear. Platforms change. Consumer habits shift.

Dib advises revisiting your target market every 6 to 12 months.
The clearer you stay about who you serve, the stronger your business grows — regardless of industry changes.

“Clarity equals power. Confusion kills conversion.”
— Allan Dib

Conclusion — Clarity Is Your Competitive Advantage

Identifying your ideal target market isn’t just about knowing who buys from you.
It’s about understanding who you serve best — and building your entire marketing message around that truth.

By now, you’ve learned:

Why focus beats reach.
How to use the PVP Index to find your sweet spot.
How to build a clear Customer Avatar with real data.
And how this single step strengthens your entire marketing plan.

Remember: you don’t have to be everything to everyone.
You just have to be irresistible to the right someone.

So take 30 minutes today.
Define your ideal customer, name them, understand them — and watch how every marketing decision becomes easier.

✅ Next Step: Build Your Ideal Customer Avatar

Continue your journey through the Selecting Your Target Market series with the next guide:
🔗 Creating Your Ideal Customer Avatar (Step-by-Step)

Or explore more in this series:

References & Credits

Allan Dib. The 1-Page Marketing Plan: Get New Customers, Make More Money, and Stand Out from the Crowd. Successwise, 2016.
Frank Kern. Behavioral Response Marketing & PVP Index Framework.
Seth Godin. Tribes and Purple Cow — on niche and permission marketing.
Dan Kennedy. The Ultimate Marketing Plan.

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