Market Maps

Question 1

What is a Market Map?

Answer 1

A Visual illustration that presents how businesses are perceived in the market.

Question 2

Benefit of Market Map? (6)

Answer 2

1. Identify Gaps in the market
2. Once conducting R&D can make a product that matches the characteristics of
3. A product that is unique
4. Lack of substitutes means product is price Inelastic
5. Increase Price without fall in demand
6. Increase revenue and profit

Question 3

Drawback of Market Maps? (5)

Answer 3

1. Based off consumer opinions
2. To ensure they are valid needs to be based off a large sample size
3. Will Require researchers to create the map
4. Increase Outflows on wages
5. Lower net cash flow