In running a business, you always need to know as much about your customers as possible. Anything from how they think, how they run their house, how much they earn, how often they go out, to how social they are can help you in one way or another. Once you know about your customers, you will want to single out the customers that are especially attracted to you or rather, the ones you specifically want to attract. This is your key target market. Knowing more specifically about them is what is really important.
If you think about it, all the brands have a specific target market that they cater to more specifically. Brands like Louis Vuitton or Gucci target people that want to appear rich, rather than the rich themselves. They have overly priced products with huge displays of their logo which has become a symbol of having spent a lot of money. People that are rich usually do not like associating with a particular brand that screams its logo and that is why they would usually shop elsewhere.
In a similar manner, some stores work on the moral compass of their customers. They offer a lot of complimentary items as a customer walks into the store and over-enthusiastically tries to show the customer that the salesperson is going the extra mile for them, to guilt them into buying a product from the store. These tactics might not work on people from a different mentality as they would probably see past it, feel uncomfortable being attacked by a salesperson, and simply choose to leave even if they happen to like a particular product. It is through many other tactics such as these that businesses manage to surround their target markets but in order to apply these tactics, the first thing they need to do is learn to know their target market.