What are the two market decisions that entrepreneurs need to make early in the process of going into business?

Question

What will be an ideal response?

Answer 1

There are two market decisions entrepreneurs need to make early in the process of going into business. One of these is the scale of the market, which is the size of the market-whether they plan to aim for a mass market or a niche market. The other is the scope of the market, which defines the geographic range covered by the market-from local to global.
Scale of the market: Mass market - A mass market is a market that involves large portions of the population-all men, all women, all teens, all elderly, all families, all manufacturers, all restaurants. Mass markets are broad, and a mass-market approach targets the entire market.
Niche market - A niche market is a narrowly defined segment of the population that is likely to share interests or concerns-25-34 year-old women, families with twins, Boy Scouts, Italian restaurants, manufacturers in a city. Niche markets are specific and narrow, and in a niche market approach, entrepreneurs try to target only customers in the niche.
Most industries have both mass and niche markets.
Scope of the market: Local to Global - Market scope is related to market scale. Market scope refers to the geography of a target market. It can be local (like a neighborhood or a city), regional (e.g., a metropolitan area or a state), national, international (usually meaning two to a few countries), or global (meaning everywhere).
Market scope is important for two reasons. First, knowing the market scope helps entrepreneurs decide where to focus their sales and advertising efforts. The second benefit is that knowing the target market gives them a way to determine which potential competitors they need to worry about most, namely those also in their market scope.