A target market is simply the market you serve best and therefore wish to serve most. It’s where you do your best work as an advisor, rep, agent, planner, broker, producer, or related wholesaler. It makes a lot of sense to establish a target market.
Why does it make so much sense?
Well, from a networking standpoint, having a target market makes it easier to determine where to go, what to say and with whom to speak. And it makes you much more referable to those in the know — clients, associates, referral sources, family, friends, former employers, and the like. Pretty good reasons, ay?
That said, I don’t see enough sales producers in financial services focused on a target market.
Here’s why! You feel that …
1. You may discourage a prospect that’s outside your target market.
If you’re speaking with a physician and your niche market happens to be manufacturing companies, it’s still beneficial to mention your focus on manufacturing. You might say something like, “Most of my work is focused on the manufacturing industry.” That leaves the opportunity for the physician to say, “Although I’m not in manufacturing, do you think you could help me with my insurance needs?” As an advisor, the fact that you’re focused on an industry gives the impression that you’re a specialist and probably very good at what you do.
2. You can’t accept business that’s outside your marketplace.
Of course you can! Given the example above, you shouldn’t turn away new business (in or out of your target market) unless it’s not your area of expertise, it’s beyond your capacity, or you simply don’t want to for some other reason. Remember, depending on your communication, having a specific focus should allow more outside opportunities, not less, to appear in your pipeline.