ABSTRACT
Market definition is a pivotal component of marketing strategy for business, service, and technology-based firms. Multinational companies as well as fledgling entrepreneurs must cope with this crucial business decision. Major differences are evidenced by market definition approaches used by executives in small firms and larger companies. Small business owners and managers typically use corporate and product line market definitions, although divisional organizational structures are, at times, beneficial. A balanced approach is advocated to provide the richest and most valuable market definition. Marketing executives in larger companies utilize a more varied approach to satisfying customer needs and responding to competition. Product-customer matrices can provide a useful summary tool for strategic marketing planning purposes. This analytical approach helps define market boundaries and segments, matches product offerings with current customers, identifies areas of key competitors' strength, provides a positioning strategy map, and notes potential underserved gaps in the market.
