L1 - Market segmentation

Objectives By the end of the lesson you will be able to: Define and provide examples of market segments.

Starter Activity What is Primary research and give an example? What is Secondary research and give an example? Give 2 advantages and 2 disadvantages of using primary and secondary research.

Answers Collection of primary data – information no one else has collected Collection of information which is available from within a business and from outside the business. Primary - Relevant to business/Up to date Time consuming/Costly Secondary – Easy to access/Time saving Not relevant/Out of date

What is the difference between the customers of these two products? How do you know?

Who is this aimed at? How do you know this?

Who is this aimed at? How do you know this?

Who is this aimed at? How do you know this?

Who is this aimed at? How do you know this?

Who is this aimed at? How do you know this?

The group of people the product is aimed at. Target market is… The group of people the product is aimed at. Queue for the launch of the iPhone in New York

Target market: the group of people the product is aimed at. Customers queuing for the new Harry Potter book

E.g. all those under 35, all those who have children, pensioners, etc. A market segment describes a group of customers who have certain things in common. E.g. all those under 35, all those who have children, pensioners, etc.

is dividing markets according to different types of customer Market Segmentation is dividing markets according to different types of customer in order to develop/promote products to meet their needs. E.g. You cannot promote alcohol to under 18’s and you cannot promote shampoo to bald people.

TYPES OF MARKET SEGMENTATION LIFE STYLE AGE GENDER INCOME

Task Who is the iPhone aimed at? Who is the Blackberry aimed at? Explain the difference between the target market of iPhone and Blackberry. Who is the Harry Potter saga written for? Who is the Twilight saga written for? Who is the Star Wars trilogy written for?

L2 – Market Mapping

Market Mapping Two parts: Identify two key features which characterise consumers within a market, (e.g. high quality/low quality, high price/low price). Having identified key features, every brand should be placed on the grid. This will reveal where the competition is concentrated, and may reveal potential gaps in the market.

Market Map Characteristics of customer

characteristic of customer Market Map Two opposites of one characteristic of customer

characteristic of customer Market Map Two opposites of one characteristic of customer

Market Map

Task Restaurants/Food Outlets Mobile phones You are to create a market map on the paper provided for the following 2 markets: Restaurants/Food Outlets Mobile phones Your two key features and axis need to be price and quality. Can you find where there is a gap in the market?