market mapping. today… understand how businesses can identify market segments understand how...
TRANSCRIPT
Market Mapping
Today…• Understand how businesses can identify
market segments
• Understand how businesses can map their market to set out the key features of the market
• Understand how businesses use this information to identify and target gaps in the market
Market SegmentsA market segment is a
part of a market that contains a group of buyers with similar characteristics and buying habits.
How a business splits up its market depends very much on the product being sold and who is the customer.
Market segments: Chocolate Brands
Market Segments: Cars
Ethnicity
Area
Income Gender
Age
Socio – economic
group
Religion
Market
How Markets can be Segmented
Segmenting themarket byincome
Segmenting the market byage or gender
Segmenting the market byage or gender
Segmentation by OCCUPATION, SOCIAL CLASS AND INCOME
Market Mapping• This is a diagram that shows the range of
possible positions for two features of a product.
• Market maps show the position of a product or group of products in the market compared to other products
e.g. a BMW car is more luxurious than Nissan Micra
Market Map
High Quality
High Price
Market Map
Low
Quality
Low Price
Do your own market map…Create a market map for clothes shops that
you know:
Use:George Karen Millen
Peacocks French Connection
DW Sports Marks & Spencer
Ted Baker Next
Topshop Matalan
PrimarkAdd any others that you know
High Quality
High Price
Market Map
Low
Quality
Low Price
Ted Baker
Top Shop
Primark
George
DW Sports
Peacocks
French Connection
Karen Millen
Next
Matalan
Your Turn…
Create a market map of local shops you know in Brighouse.
McKays Czerwiks BootsYorkshire Foods Wilkinsons Odd
JobsSuperdrug Clinton Cards
Johnsons Dry Cleaners Tiger FeetWebsters Woolworths
Market Gaps• This happens when no business is currently serving
the needs of customers for a particular product
• Businesses can be very successful if they spot a “gap in the market “ or “market gap”
Although…..
• A lot of business do make products similar to others, if the market is big enough they too can also be successful
Market Gaps
How do I get myself and my car Home after a night out, without endangering myself and others, without risking
my licence, in a convenient and cost effective way?
When a business has an idea for a new product or service that no other business has yet launched, it is called a market …………
A - Map
B - Segment
C - Gap
D - Resource
A part of a market that contains a group of buyers with similar characteristics is called a market ………
C - Gap
A toy manufacturer sells toys which are linked to a popular television programme aimed at 1-4 years old. It also sells toys aimed at 5-9 years old. The two age ranges for the toy manufacturer are examples of the market …………
A – Resources
B – Maps
C – Gaps
D - Segments
A toy manufacturer sells toys which are linked to a popular television programme aimed at 1-4 years old. It also sells toys aimed at 5-9 years old. The two age ranges for the toy manufacturer are examples of the market …………
D - Segments
Katie Lunn is investigating setting up as an independent newsagent. She has drawn up several market maps to help her in her market research. A market map is a visual means of showing:
A – Where the business is located
B – The conclusions of a market survey
C – Where a product is positioned in the market
D – Market segments
Katie Lunn is investigating setting up as an independent newsagent. She has drawn up several market maps to help her in her market research. A market map is a visual means of showing:
C – Where a product is positioned in the market
Aim of the lesson• To re-cap on market gaps and market
mapping• To think of a new business you could open
in Brighouse town centre • To produce a market map and position
your business idea on the map• To explain why your idea will be
successful• To consider whether spotting a gap in a
market will guarantee success
How do I get myself and my car Home after a night out, without endangering myself and others, without risking
my licence, in a convenient and cost effective way?
High Quality
High Price
Market Map
Low
Quality
Low Price
Ted Baker
Top Shop
Primark
George
DW Sports
Peacocks
French Connection
Karen Millen
Next
Matalan
Market Gap ExerciseOn one sheet of A3 paper:• Think of a “gap” in a market in Brighouse town
centre. Identify what shop would you open in the town and what you sell. Give your shop a NAME.
• Draw a market map showing at least two other businesses that sell similar products/services to your shop. Also mark on where you would “position” your shop on the market map.
• Explain and justify why you think your idea will be successful.
• Will spotting this market gap guarantee you success? Justify your decision.
Gill’s Pet Grooming Service
Market Map for Brighouse What we will sell:
Why we think our idea willbe successful:
Spotting this market gap does(not) guarantee success because:
Why will the idea be a success?
• Large number of target market – increases sales
• Good location – busy town centre - plenty of customers
• Wide range of products sold – more customers
• Offer extra services for our customers – increases sales
• Competitive prices – more customers• No competitors in the town centre – all people
wanting dog grooming, will use our business