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 Segments A 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

How Markets can be Segmented

Segmenting the market by income

Segmenting the market by age or gender

Segmenting the market by age 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

Market Map High Price Low Quality High 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 Primark Add any others that you know

Market Map High Price Low Quality High Quality Low Price Ted Baker Karen Millen French Connection DW Sports Next Low Quality Top Shop High Quality Matalan George Peacocks Primark Low Price

Your Turn… Create a market map of local shops you know in Brighouse. McKays Czerwiks Boots Yorkshire Foods Wilkinsons Odd Jobs Superdrug Clinton Cards Johnsons Dry Cleaners Tiger Feet Websters 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 – 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 ………… 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

A – Where the business is located 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 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?

Market Map High Price Low High Quality Quality Low Price Ted Baker Karen Millen French Connection DW Sports Next Low Quality Top Shop High Quality Matalan George Peacocks Primark Low Price

Market Gap Exercise On 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 What we will sell: Market Map for Brighouse Why we think our idea will be 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