1. L1 - Market segmentation

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

3. 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.

4. 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Not relevant/Out of date

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

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

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

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

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

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

11. 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

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

13. 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.

14. 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.

15. TYPES OF MARKET SEGMENTATION
LIFE STYLE
AGE
GENDER
INCOME

16. 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?

17. L2 – Market Mapping

18. 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.

20. Market Map
Characteristics of customer

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

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

23. Market Map

24. 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?