Identifying target markets involves several steps: 1. Market Research: Conducting thorough research to gather data about potential customers. 2. Market Segmentation: Dividing the market into smaller segments based on characteristics like age, gender, income, and interests. 3. Customer Profiling: Creating detailed profiles of ideal customers within each segment. 4. Competitive Analysis: Analyzing competitors to understand their target markets and strategies. 5. Data Analytics: Using data analytics tools to gain insights into customer behavior and preferences.