Compare and contrast a narrow market definition with a broad market definition. List three key benefits of using a broad market definition

What will be an ideal response?

A business with a narrow market focus does not see beyond the articulated needs of served customers. A market definition encompassing only the articulated needs of current customers will result in unfulfilled market potential as the business's served market moves left to right and becomes a greater part of the unserved market ignored by the narrow market definition. Businesses with a narrow market focus have an inclination to define their market based on the customers they see, which limits their thinking and the potential to grow their business outside their narrow view of served customers with an articulated need. This leaves a vast untapped market opportunity.

On the other hand, a broad market definition encourages discovery of unarticulated needs and uncovers new unserved opportunities. To achieve this, a business must have a broader definition of all product markets that are potential substitutes for the product markets currently served by the business, enabling managers to see a broader set of customer needs and potential new market opportunities. A broad strategic market definition provides three key benefits to a market-based business:
(1 ) It opens the window of opportunity to a broader set of customer needs.
(2 ) It provides better understanding of potential substitutes and competitive threats.
(3 ) It helps a business better understand fundamental customer needs.