Market Market segmentation andsegmentation andmarket mappingmarket mapping

Learning objectives:be able to

understand …

… how businesses can identify market

segments

… how businesses can

map their market to

identify key features

… how businesses use this information to identify and target

gaps in the market

Market segmentsMarket segments

DefinitionA part of a market that

contains a group of buyers with similar characteristics

and buying habits

DefinitionA part of a market that

contains a group of buyers with similar characteristics

and buying habits

• Agethirty somethings, ‘grey’

• Gendermale, female

• Household typeDINKYs, KIPPERs, Pink £

• Income levelslow, middle, high

• Ethnic groupwhite, Asian, Afro-Caribbean

• GeographicalNorth West, Europe, South East Asia

• Socio-economic groupworking class, middle class

How businesses segmentHow businesses segment

• ReligionJewish, Muslim

Group Type

1 Higher managerial and professional occupations

1.1 Large employers and higher managerial occupations

1.2 Higher professional occupations

2 Lower managerial and professional occupations

3 Intermediate occupations

4 Small employers and own account workers

5 Lower supervisory and technical occupations

6 Semi-routine occupations

7 Routine occupations

8 Never worked and long-term unemployed

Socio-economic groupsSocio-economic groups

Task 1: which segment?Task 1: which segment?

In pairs, look at two adverts and decide which market segments the company is targeting.

Record your ideas on your worksheetBe ready to feedback your ideas to the rest

of the class

Task 2: homeworkTask 2: homework

For next lesson see if you can find an advert which is targeted at you or your family

Stick this advert in your worksheet in the space provided

Write 3 sentences about why you think this advert is targeted at you or your family

Task 3: why does Task 3: why does Unilever produce so Unilever produce so many shampoos?many shampoos?

Task 4: extended Task 4: extended writingwritingUnilever offers a range of different types

and brands of shampoo. Explain why it does this (8 marks)

Market mappingMarket mapping

DefinitionA market map is diagram that shows the range of possible positions for 2 features of a product

DefinitionA market map is diagram that shows the range of possible positions for 2 features of a product

• High priced / low priced

• For young / for old

• Modern / traditional

• For men / for women

• Low fat / high fat

• Everyday / luxury

How markets can be How markets can be mappedmapped

Task 5: map the Task 5: map the chocolate marketchocolate market Let’s have a go at mapping the chocolate

marketWe will use the following criteria

luxury chocolate / everyday chocolate light chocolate / filling chocolate

When you are called to come up to the whiteboard choose a brand of chocolate decide where it should be placed on the market map drag the brand to your chosen position justify your decision to the rest of the class

Luxury

Everyday

Light

Filling

x Twix

x Mars

x Turkish Delight

x Crunchie

x Kit Kat

x Milk Tray

x Dairy Milk

x Maltesers

x Snickers

x Caramel

x Snaps

x Celebrations

x Lindor balls

x Milky way

x Fudge

x Milky bar

x Buttons

x Galaxy

x Flake

Task 6: paired Task 6: paired discussiondiscussionUsing the chocolate market map we

have created, discuss why a market map would be useful to a business

Record your ideas on the worksheet

Uses of market mapping for existing businesses

To show where a sector is

overcrowded

To show where a sector is

overcrowded

To identify gaps in the market to

extend product range

To identify gaps in the market to

extend product range

To stop the producer becoming over reliant on one sector which

may decline

To stop the producer becoming over reliant on one sector which

may decline

Use of market mapping for new businesses

To identify gaps in the market in order to enter as a ‘niche’

provider

To identify gaps in the market in order to enter as a ‘niche’

provider

Task 7: exam practiceTask 7: exam practice

Complete the three multiple choice questions on the worksheet to check your understanding of the topic we have now completed.

Record your mark on your worksheet.