Market Mapping Basics

Market Mapping

• Market mapping identifies brand differentiating variables and visualizes them on a map to reveal market gaps.
• A market map typically features existing brands plotted along two axes, tailored to the specific industry.
• Variables can include modern vs. traditional, mass vs. niche, and functional vs. luxury.

Market Mapping Example

• Example brands may include George (ASDA), Dorothy Perkins, H&M, and Dior positioned across various price and quality spectrums.
• A possible market gap can be identified where few brands occupy specific spaces.

Uses of Market Mapping

• Helps in identifying gaps in the market for existing and new products or services.
• Assists start-ups in creating market-oriented strategies rather than product-oriented ones.
• Allows traditional brands to reposition themselves effectively within the market.

Market Segmentation

• Segmentation by age groups (e.g., 0-10, 11-16, 26-35) helps businesses tailor marketing strategies based on different consumer needs.
• Gender segmentation involves adapting products for targeted demographics, as seen with razors designed for men and women.

Additional Concepts in Segmentation

• Income segmentation categorizes individuals into low, middle, and high-income groups to understand market dynamics.
• Age and gender segmentation allow for targeted marketing efforts, improving product relevance and sales potential.

On-the-Spot Questions

• The primary purpose of market mapping is to identify gaps in the market, not to assess financial performance.
• Variables commonly used in market mapping exclude those not typically relevant, such as 'Brand Lifetime vs. Market Demand.'
• Market mapping helps start-ups focus on market-oriented strategies rather than purely on product characteristics.

Product and Market Orientation

• Product orientation focuses on a business's internal production capabilities rather than consumer desires, often used when competition is minimal or consumer knowledge is low.
• This approach may limit innovation as seen with companies like Apple, which create products primarily based on internal vision rather than existing consumer demand.

Summary of Key Concepts

• Understanding market orientation helps businesses anticipate customer needs effectively.
• Recognizing the limitations of market research is crucial for developing comprehensive marketing strategies.
• Concepts such as competitive advantage and product differentiation are essential for successful positioning in the market.

Explore the concept of market mapping, a process that identifies and visualizes brand differentiation in a market. This quiz covers key variables such as premium vs. traditional and mass vs. niche markets, helping you understand how to spot market gaps effectively.