Many business owners think that EVERYONE is their customer, so they create a coupon, find a monthly delivery system (a coupon magazine or coupon mailer) and hope for the best. But, understanding your target customer can give you insights into how to price, how to promote, how to utilize media and what special offers will appeal to them.
If you are not in business yet, look at the neighborhoods where you are thinking of locating your business. What is the average age and income of the people in the immediate one mile radius? Check out the three mile radius also. If you have a retail business, the majority of your customers will be local to those areas.
If your answer is Generation X, have you made them the target of your marketing dollars? Do you know how to make your message resonate with them?