Market Segmentation Title: 23/09/2015 Date: Lesson Objectives: To Map a Market Understand the importance of Market Mapping

A physical, tangible product that is provided for customers A non physical, intangible product that is provided for customers A good or service produced by a business or organisation and made available to customers

You have conducted an Observation, where you stood outside the restaurant at different times of the day and made a note of the people who visit the restaurant. Your research showed 7am – 9am - People on their way to work, looking for breakfast 10 am – 2pm – Mothers with their young children 3pm – 6pm – Elderly people 7 pm – 11pm – Couples looking for a nice romantic meal 1)What are the needs of each of these customers? (4 marks) 2)How would you change your menu to meet these needs? (4 marks) Key Concept: Market Needs Re-Cap

What is a Product Range? Lesson Objectives: To be able to create a market map To be able to identify gaps in a market Key Concept: Market Mapping How many products can you name? 30 seconds Lesson Objectives: To Map a Market Understand the importance of Market Mapping

Looking at a Market Map Businesses use market research to look at a market e.g. the chocolate market and plot products onto the map. Can you put the chocolates in the right place? Luxury Chocolate Everyday chocolate Filling chocolateLight chocolate Key Concept: Market Mapping

Fill in the Market Map Turkish Delight Milk Tray Cadbury Snaps Mars Dairy Milk Smarties Crunchie Maltesers Twix Snickers Galaxy Kit Kat Cadbury’s Caramel Cadbury’s Celebrations Luxury Chocolate Everyday chocolate Filling chocolateLight chocolate Key Concept: Market Mapping

Answers 1.Turkish Delight 2.Cadbury’s Caramel 3.Cadbury’s Dairy Milk 4.Snickers 5.Twix 6.Mars 7.Kit Kat 8.Smarties 9.Crunchie 10.Galaxy 11.Celebrations 12.Milk Tray 13.Cadbury Snaps 14.Maltesers Key Concept: Market Mapping

What is Market Mapping? Setting out the key features of the market on a diagram Identifies the gaps in the market Shows where a sector is overcrowded Businesses spend substantial amounts to get it right Key Concept: Market Mapping

What is a Market Map? A grid that measures two different aspects of the brands within the market (e.g. young/old compared with luxury/economy) Key Concept: Market Mapping

What does this map show? Luxury Chocolate Everyday chocolate Filling chocolate Light chocolate Key Concept: Market Mapping 1.Turkish Delight 2.Cadbury’s Caramel 3.Cadbury’s Dairy Milk 4.Snickers 5.Twix 6.Mars 7.Kit Kat 8.Smarties 9.Crunchie 10.Galaxy 11.Celebrations 12.Milk Tray 13.Cadbury Snaps 14.Maltesers

What does this map show? Mars is good at filling, everyday chocolate – Snickers – Twix – Mars But people are worrying about their weight, and so are buying… Key Concept: Market Mapping

Did you get it? They are buying Lighter chocolate e.g. – Crunchie – Maltesers – Cadbury Snaps Key Concept: Market Mapping

Thinking time…Is there room for a new chocolate product?? Is there room for something new in the market? What could it be? Why would you launch it? Key Concept: Market Mapping

Identifying Market Map Key Factors High priced/low priced For the young/for the old Modern/traditional For men/for women Key Concept: Market Mapping

Think about… If you were to draw a market map for soft drinks, what factors could you use? What benefits would a soft drinks company have from studying a market map? Where would you put Coke?? Key Concept: Market Mapping

Which of these companies are competitors for Sky? Lesson Objectives: To be able to create a market map To be able to identify gaps in a market Key Concept: Market Mapping and your competitors

A business that shares the same target market, it targets the same needs and wants of this target market as our business. Lesson Objectives: To be able to create a market map To be able to identify gaps in a market Key Concept: Market Mapping and your competitors

Key Concept: Market Mapping

Key Concept: Market Mapping and your competitors