What is a broad market?
A broad market is one where the firm is targeting a large customer base. Instead of focussing on a specific part of the market, firms that pursue a broad market look to attract most if not all customers to their products. This means that instead of trying to appeal to any one specific segment, the company looks to appeal to a wide range of customer needs.
What is a narrow market?
In comparison, a company targetting a narrow market looks to specifically cater to a certain type of customer. Instead of getting all customers, a firm persuing a niche strategy specifically identified a group of customers with similar needs (and different needs to the majority of customers), and look to tailor the products to these customers.
Examples of a narrow market
- Customers that use the items for a different reason
- Customers that need additional features or services
- Customers that do not need features that most customers want
- Customers that require much greater customizations than others