1. Friday 20th September Mr Nicholls
Year 10 Business
Friday 20th September
Mr Nicholls

2. Objectives
To apply our understanding of customer types to market mapping in business.

3. First off… Customers… Customers have needs and wants:
A business needs to match their company capabilities with customer wants – this is what we call the Marketing Environment.
Customers have needs and wants:
A need is a basic requirement that an individual wishes to satisfy.
A want is a desire for a specific product or service to satisfy the underlying need.

4. For example… Consumers need to eat when they are hungry.
What they want to eat and in what kind of environment will vary from customer to customer – for example:
McDonalds satisfies the need to meet hunger.
Microwave meals also satisfy this need.
An expensive meal with a bottle of wine also meets this need.

5. So….
This is where the importance of customer demand becomes apparent – this is where a want for a specific product is supported by a willingness and ability to pay for it
For example – many people want a Ferrari but relatively few are able and willing to buy one.
Therefore – businesses not only have to make products that consumers want, but also make them affordable to a sufficient number of customers to create profitable demand.

6. Therefore…
The business does not create the customer needs or the social status in which the customer needs are influenced, however they try to influence demand by designing products and services that are:
Attractive
Work Well
Affordable
Available

7. So…
When we consider the different products, we then consider how we can map them out as follows:
The market map illustrates the range of positions that a product can take in a market based on two dimensions that are important to customers such as:
High V Low Price
Basic V High Quality
Low V High Volume
Necessity V Luxury
Light V Heavy
Simple V Complex
Lo-tech V High-tech
Young V Old

8. A Market Map

9. Why use it?
Firstly to ensure that the products are positioned to meet the needs and wants of customers.
Secondly it can help to identify where there might be gaps in a market in which to set up a new business opportunity.
The trick is to ensure that a market map is used WITH market research to confirm whether there is the demand for a gap in the market.

10. Gap in the market…

11. Or for example…

12. So…
Based on what we have looked at – in your exercise books please create a market map of your own.
Remember – you can consider the headings:
High V Low Price
Basic V High Quality
Low V High Volume
Necessity V Luxury
Light V Heavy
Simple V Complex
Lo-tech V High-tech
Young V Old
The business(es) you choose is/are up to you!

13. And finally…