3.3a - Market Mapping

Question 1

Market mapping definition

Answer 1

A method of showing the range of positions that a product can take in a market based on two factors that are important to customers e.g. low price vs high price

Question 2

Advantages of market mapping:

Answer 2

• Spot gaps in the market
• Analyse competitors
• Encourages use of market research
• Understand public perception of business as a brand then use the information to reposition
• Help with pricing strategy

Question 3

Disadvantages of market mapping:

Answer 3

• Not a guarantee of success
• A gap in the market does not mean there is a demand
• Market research may be unreliable
• Over-simplify (doesn’t take into account other factors such as location)
• Based on opinion (may be biased)