Market Mapping and Segmentation

Questions and Answers

What is the primary purpose of market mapping?

To assess the financial performance of a company.

To determine the minimum viable product for start-ups.

To develop a new product for testing.

To find variables that differentiate brands in a market. (correct)

Which of the following variables is NOT typically used in market mapping?

Luxury vs. Economy

High Quality vs. Low Quality

Brand Lifetime vs. Market Demand (correct)

Modern vs. Traditional

By using market mapping, a start-up aims to achieve which of the following?

Focus solely on product-oriented strategies.

Increase their market share irrespective of consumer needs.

Set prices based purely on competitor pricing.

Identify which products or services to produce based on market orientation. (correct)

In a market map, if 'Dior' is positioned in the luxury segment, which brand would most likely represent the budget end?

<p>Primark</p> Signup and view all the answers

How can market mapping assist traditional brands like The North Face?

<p>By allowing them to reposition themselves to appeal to different customer demographics.</p> Signup and view all the answers

Study Notes

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.

Description

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.