There Are Generally Two Views on this:
1. The view you might have heard before:
“Your target market is the market that your business aims to sell to.
A niche market is a specialized, smaller market of the target market.
If you are selling pet food, people who own pets are your target market.
If you are selling dog food, then you are serving a niche market: dog owners.
If you are selling dog food for dogs with Arthritis, you are targeting a sub-niche.
If you are selling dog food for dogs with Arthritis, in the US, you are targeting a sub-sub-niche.
If you are selling dog food for dogs with Arthritis, in California, you are targeting a sub-sub-sub-niche.
If you are selling dog food for dogs with Arthritis, in Los Angeles, you are targeting a local niche.
Your Target Audience, sometimes referred to, in advertising, as ‘magazine readers, radio listeners, TV viewers, social media users', then consists of dog owners who live in L.A. and who care about their dog's Arthritis.
Tip: If you are just starting out and want to see results fast, it's best to pick or even better to create, a sub-sub-niche that doesn't show much competition yet, a so-called ‘blue ocean' niche.
2. Michael Port's view (Author of ‘Book Yourself Solid')
Your target market is the group of people you serve.
Your niche is the service you specialize in.
The service you're offering to a specific target market.
You and I may both serve the same target market,
e.g. service professionals, but offer them different services.
I might specialize in getting clients and
you might help them create systems for their business.
Tip: Whatever you call it, think about WHOm are you targeting in your market
and WHAT speciality do you want to get known for?
A question to consider:
- Do you want to keep focusing on the same target audience, bringing them different services or
- do you want to keep offering the same service but target different markets one after the other?