market segmentation and mapping

how to segment a market

• age

• demographics

• lifestyle

• location

• income

• gender

benefits if segmentation

• meet specific customer needs

• differentiate a product to focus on a specific groups needs

• target marketing techniques

• develop a unique brand image

• build closer relationships with customers

limitations of segmentation

• costly

• might miss another opportunity

• customer characteristics can change overtime where the product may no longer be useful

market mapping

diagram that can be used to position and compare products in a market

used to identify gaps in the market

benefits of mapping

• helps to identify gaps in the markets

• identify closest rivals

• supports segmentation

• help business to make decisions about marketing and positioning its brand

head to head competition

if theres enough demand in the market

if the business is able to meet customer needs better than its competitors