The larger your target market the more customers you can service and a better chance to make a lot of money. Service a large number of people and you’re sure to be a success, you don’t want to leave anyone out or exclude anyone do you? Create a product that the average person would like. You’re sure to make a lot of sales selling an average product to average people, right?
(targeting the early and late majority is the largest, most profitable chunk of the curve but they are a difficult group to market to, for the most part they follow what the innovators and early adopters are doing. As well you have much more competition in the early and late majority)
Pick the smallest possible niche you could possibly target and focus on them and them only. Relentlessly seek feedback from your best customers and constantly figure out new ways to delight them. If you consistently exceed expectations they will have to talk about you to others. Never worry about the people who aren’t in your target market, you must exclude others to allow yourself time to treat the select few customers you do want to work with extra special. Inevitably people will be offended, upset, and even pissed off at what you do, this is a sure sign you’re on to something.
(targeting the innovators of your target market is difficult but if done properly, very profitable. Remember, the late majority follows the early majority, the early majority follows the early adopters, and the early adopters follow what the innovators do. Focus your efforts on the innovators and over time it will be exponentially)
You can only pick one strategy, choose wisely.