As a business, you need to identify your target customers by analyzing their lifestyles, psychographics, income, spending capabilities, and mentalities so that you may offer them relevant products and services.
For example, knowing that individuals from lower income groups would never be interested in, or have the means to buy, expensive and luxurious products is beneficial in that it allows your business to focus its attention on the likely buyers of your product or service.
Trying to sell a Mercedes or a luxury watch to someone who finds it difficult to make ends meet would definitely be a disastrous marketing technique.
— For more lessons like this, purchase your copy of Act Like a Business: Think Like a Customer by Dr. Elijah Clark from all major bookstores. —