identifying products or market niches
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Identifying products or market niches
AS Business
Task 2
• List as many different markets as you can in 3 minutes
• Do not share your answers!!
• Example • Sports Cars• Televisions • Fashion clothes
Extended task• Now you have 3 minutes to walk
round the room and get more answers.
• You must give an answer to get one
• You can only use 1 person once
So who are the leaders of these markets
How are markets configured (seen) • Markets are divided
into segments
Segments
What do we mean by segments
• Do car manufactures like Ford make a car for everyone?
• Companies target specific groups of individuals
Some ways segments are divided
• Age• Gender (sex)• Income (salary)• Employment• Hobbies & interests• Relationship status (partner)• Family situation (children)
Extended segmentation
• Age• 16 – 21• 22 – 31 • 32 – 41• 42 – 55• 56 – 75 • 75 +
• Gender (sex)• Income (salary)• Employment• Hobbies &
interests• Relationship
status (partner)• Family situation
(children)
Magazines
Target marketing A business may target a particular group, or segment.
It is better to get a product or service right for one small group, than get it wrong for all of them
Niches
• Smaller businesses try to find a gap in the market
• A large business has the money to research and develop products in competitive markets
• Small businesses look for a gap, where there are fewer competitors
Niches
• Finding a product or service that is not often offered by main stream competition
Spotting the gap
• There are many ways in which a gap in the market can be identified
Timing
• Any business could consider changing its opening hours to earlier, later or longer to get new customers that may often shop somewhere else
Size
• If the business made products in a different size would that appeal to a new market
Adapting
• An idea that is working in a certain part of the globe, may be welcomed in different areas.
Location
• Although in the UK internet sales are becoming increasingly more popular, with home delivery offered by almost all businesses.
• Having a business or product that is easy to get to can encourage sales
Impulse purchases
An impulse buy is something you maybe do not need, but will buy as you know you like, and it is easy to do so