Market Mapping. Today… Understand how businesses can identify market segments Understand how businesses can map their market to set out the key features.

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