1. Market Mapping

2. 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

3. 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

4. Market Segments: Cars

5. How Markets can be Segmented

6. Segmenting the
market by
income

7. Segmenting the market by
age or gender

8. Segmenting the market by
age or gender

9. Segmentation by OCCUPATION, SOCIAL CLASS AND INCOME

10. 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

11. Market Map

12. Market Map
High Price
Low
Quality
High Quality
Low Price

13. 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

14. 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

15. 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

16. 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

17. Market Gaps

18. 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?

19. 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

20. A part of a market that contains a group of buyers with similar characteristics is called a market ………
C - Gap

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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?

27. 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

28. 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.

29. 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:

30. 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