Market Definition at the SBU Level
A market definition at an SBU is defined in the same way as it would for an entire company. But there are 2 differences between market definition at the company level and at the SBU level
1. Because marketing plans are made for the SBU, the market definition should be more concrete
2. The market for an SBU is smaller
compared to a company.
The sum of all market definitions of all SBU's will approximately add up to the market definition for the entire company.
Note that the definition of customer need
has a direct impact on the ''range of the competition''. After all, a competitor
is by definition a supplier that can satisfy the same customer need. Product characteristics can also used when defining a market definition.