1.1.3 Market Mapping

• What is market segmentation?

  Division of a market into groups
• Why do businesses segment markets?

  To target products at the right people
• What are two common bases for market segmentation?

  Demographic and geographic
• What are two common bases of a demographic segment?

  Age and gender
• Give an example of market segmentation based on age.

  Video games for teenagers
• How do luxury brands target income segments?

  By targeting high-income groups
• How might geography influence product offerings?

  Winter products in colder climates
• What is the purpose of a market map?

  Helps plan routes from one place to another
• What is market mapping?

  A visual tool for product features
• What does market mapping help businesses understand?

  Competitor behavior and market gaps
• What do the key axes in market mapping represent?

  Opposite features of products
• What are some examples of key axes in market mapping?

  High quality vs. low quality
• How did Burberry reposition itself in the market?

  By appealing to a younger audience
• What are the steps to create a market map?

  Identify dimensions, place competitors, analyze
• What types of brands are included in the sports brand category?

  Nike, Adidas, New Balance
• What is a potential gap identified in the electric car market?

  High-performance and eco-friendly options
• What is the value of market mapping for business start-ups?

  Identifies gaps in the market
• How can existing businesses benefit from market mapping?

  Reposition products to align with preferences
• What should you identify for exam preparation in market mapping?

  Industry and five competitors
• What should you do after plotting businesses on a market map?

  Identify potential gaps in the market
• What is the purpose of market mapping in business strategy?

  To analyze competition and market opportunities