Businesses can segment markets and map markets to better understand customer groups and identify opportunities. Market segmentation involves dividing a market into distinct subgroups with similar characteristics. It is used to target specific groups. Market mapping diagrams show how products compare along two features to identify gaps and overcrowding. It helps businesses position products and identify extensions or niches. Unilever produces many shampoo brands to target different segments defined by factors like age, gender or price point. Mapping the chocolate market showed where brands are positioned and gaps exist to enter or extend ranges.

1. Market segmentationMarket segmentation
andand
market mappingmarket mapping

2. Learning objectives:
be able to understand …
… how businesses
can identify
market segments
… how businesses
can map their
market to
identify key
features
… how businesses use this
information to identify and target
gaps in the market

3. Market segmentsMarket segments
Definition
A part of a market that
contains a group of buyers
with similar characteristics
and buying habits
Definition
A part of a market that
contains a group of buyers
with similar characteristics
and buying habits

4. • Age
thirty somethings, ‘grey’
• Gender
male, female
• Household type
DINKYs, KIPPERs, Pink £
• Income levels
low, middle, high
• Ethnic group
white, Asian, Afro-Caribbean
• Geographical
North West, Europe, South East Asia
• Socio-economic group
working class, middle class
How businesses segmentHow businesses segment
• Religion
Jewish, Muslim

5. Group Type
1 Higher managerial and professional occupations
1.1 Large employers and higher managerial occupations
1.2 Higher professional occupations
2 Lower managerial and professional occupations
3 Intermediate occupations
4 Small employers and own account workers
5 Lower supervisory and technical occupations
6 Semi-routine occupations
7 Routine occupations
8 Never worked and long-term unemployed
Socio-economic groupsSocio-economic groups

6. Task 1: which segment?Task 1: which segment?
 In pairs, look at two adverts and decide which
market segments the company is targeting.
 Record your ideas on your worksheet
 Be ready to feedback your ideas to the rest of
the class

7. Task 2: homeworkTask 2: homework
 For next lesson see if you can find an advert
which is targeted at you or your family
 Stick this advert in your worksheet in the
space provided
 Write 3 sentences about why you think this
advert is targeted at you or your family

8. Task 3: why does UnileverTask 3: why does Unilever
produce so many shampoos?produce so many shampoos?

9. Task 4: extended writingTask 4: extended writing
 Unilever offers a range of different types and
brands of shampoo.
 Explain why it does this (8 marks)

10. Market mappingMarket mapping
Definition
A market map is diagram that
shows the range of possible
positions for 2 features of a
product
Definition
A market map is diagram that
shows the range of possible
positions for 2 features of a
product

11. • High priced / low priced
• For young / for old
• Modern / traditional
• For men / for women
• Low fat / high fat
How markets can be mappedHow markets can be mapped

12. Task 5: map the chocolateTask 5: map the chocolate
marketmarket
 Let’s have a go at mapping the chocolate
market
 We will use the following criteria
 luxury chocolate / everyday chocolate
 light chocolate / filling chocolate
 When you are called to come up to the
whiteboard
 choose a brand of chocolate
 decide where it should be placed on the market map
 drag the brand to your chosen position
 justify your decision to the rest of the class

13. Luxury
Everyday
Light
Filling
x Twix
x Mars
x Turkish Delight
x Crunchie
x Kit Kat
x Milk Tray
x Dairy Milk
x Maltesers
x Snickers
x Caramel
x Snaps
x Celebrations
x Lindor balls
x Milky way
x Fudge
x Milky bar
x Buttons
x Galaxy
x Flake

14. Task 6: paired discussionTask 6: paired discussion
 Using the chocolate market map we have
created, discuss why a market map would be
useful to a business
 Record your ideas on the worksheet

15. Uses of market mapping for
existing businesses
To show where a
sector is
overcrowded
To show where a
sector is
overcrowded
To identify gaps
in the market to
extend product
range
To identify gaps
in the market to
extend product
range
To stop the producer becoming
over reliant on one sector which
may decline
To stop the producer becoming
over reliant on one sector which
may decline

16. Use of market mapping for
new businesses
To identify gaps in the market in
order to enter as a ‘niche’ provider
To identify gaps in the market in
order to enter as a ‘niche’ provider

17. Task 7: exam practiceTask 7: exam practice
 Complete the three multiple choice questions
on the worksheet to check your
understanding of the topic we have now
completed.
 Record your mark on your worksheet.