Market mapping Flashcards
1
Q
what is market mapping
A
A tool used to analyse competition in a specific market
2
Q
what two variables can it be measured by
A
price v quality
price v customer age
3
Q
what can you learn from using a market map
A
- which markets you don’t want to enter as it is too saturated
- Find gaps in the market
4
Q
what are some implications of high quality & low price
A
high quality = high costs
low prices = low revenue
impossible to make profit because cost may outweigh revenue
5
Q
what is a good thing about finding gaps in the market
A
low competition = higher sales = more revenue & profit
6
Q
why else might a business use market maps
A
an existing company may want to change their product range and find new segments to target their goods = more sales
7
Q
3 pros of market mapping
A
- start ups = find gap in the market / existing = reposition their brand
- find saturated areas
- simple way to analyse market = good decisions = reducing risk
8
Q
3 cons of market mapping
A
- no gurantee of success
- only 2 variables = can’t handle complex markets e.g. ethicality
- depends on who did market map = opinion bases/ bias
