Market Mapping and Segmentation

Market Mapping

• Market mapping identifies variables that differentiate brands within a market and visualizes them to detect market gaps.
• It plots brands on axes based on selected variables, which vary by industry.
• Common variables include:
  • Modern vs. Traditional
  • Mass vs. Niche
  • Functional vs. Luxury
  • High Quality vs. Low Quality
  • Premium vs. Budget
• Example of clothing brands plotted on a market map highlights potential market gaps.

Uses of Market Mapping

• Assists in identifying gaps in market offerings.
• Helps start-ups shape their products and services based on market needs rather than focusing solely on their existing products.
• Traditional brands can reposition themselves within a market.

Market Segmentation

• Market segments are identifiable consumer groups sharing specific characteristics or needs.
• Businesses segment markets based on:
  • Location: Targeting based on geographical regions or climate (urban vs. rural, hot vs. cold).
  • Demographics: Statistical data like age, gender, and income to tailor products (e.g., book publishers targeting different audiences).
  • Lifestyle: Grouping consumers by their life choices, values, and attitudes (young professionals in sports cars vs. families needing family vehicles).
  • Income: Dividing populations according to salary, typically into low, middle, and high-income categories.

Product and Market Orientation

• Product Orientation: Focus on the product itself rather than consumer preferences, often in low-competition markets or those with limited consumer awareness.
• Appropriate when:
  • Competition is minimal, allowing for focused production.
  • Consumer knowledge is low, especially for niche products.
  • Consumer income levels are low, leading to higher demand for available products.
• Example: Apple creates products like iPhones prioritizing technological innovation rather than immediate consumer feedback.

This quiz explores the concepts of market mapping and segmentation, focusing on how variables differentiate brands within a market. It highlights the importance of identifying market gaps for start-ups and repositioning for traditional brands. Additionally, the quiz covers the significance of targeting specific consumer groups.