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
Religion
Socio –
Ethnicity
economic
group
Market
Age
Area
Income
Gender
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
High
Quality
Quality
Low Price
Do your own market map…
Create a market map for clothes shops that
you know:
Use:
George
Peacocks
DW Sports
Ted Baker
Topshop
Primark
Karen Millen
French Connection
Marks & Spencer
Next
Matalan
Add any others
that you know
Market Map
High
Price
Ted Baker
Karen Millen
French Connection
DW Sports
Top Shop
Low
Quality
Matalan
George
Peacocks
Primark
Low Price
Next
High
Quality
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
B
C
D
-
Map
Segment
Gap
Resource
A part of a market that contains a group of
buyers with similar characteristics is
called a market ………
C - Gap
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
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. 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
Ted Baker
Karen Millen
French Connection
DW Sports
Top Shop
Low
Quality
Matalan
George
Peacocks
Primark
Low Price
Next
High
Quality
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
Market Map for Brighouse
What we will sell:
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