Market Mapping
Market mapping involves visually representing the competitive landscape within a specific market. It helps in identifying key players, their positioning, and market share. This process provides valuable insights for businesses to understand their competitive environment and make informed strategic decisions.
7 Key excerpts on "Market Mapping"
eBook - ePubMarket Segmentation
How to Do It and How to Profit from It
- Malcolm McDonald(Author)
- 2012(Publication Date)
- Wiley(Publisher)
...However, even in these markets, the emergence of alternative routes to market has made Market Mapping an essential exercise, an exercise that should be revisited and updated on a regular basis. Although in structurally very simple markets you may feel it is possible to skip this step of the segmentation process, it is strongly recommended that you at least review the ‘fast track’ for this step in Chapter 3 and give it most careful thought before deciding that Market Mapping is not relevant. In our experience, Market Mapping is relevant to all organizations. This chapter aims to provide you with a practical guide to Market Mapping so that your first market map(s) can be constructed using information already held by your company. This information can come from departments such as sales, customer services, distribution, accounts, and so on. Past market surveys and industry statistics can also be useful sources of information, assuming you have any. Verification, if required, can be included in any follow-up work you commission for your segmentation project as a whole. Examples of market maps appear towards the end of the chapter. In addition to segmenting those you target with your products and services, it is sometimes necessary to follow this up with a segmentation project for intermediaries, such as retailers, so that you have a detailed understanding of how to win ‘shelf space’...
eBook - ePubMarketing for Tourism and Hospitality
Collaboration, Technology and Experiences
- Alan Fyall, Patrick Legohérel, Isabelle Frochot, Youcheng Wang(Authors)
- 2019(Publication Date)
- Routledge(Publisher)
...13 Market segmentation, targeting, and positioning Key terms market segmentation, targeting, positioning, segmentation criteria, competition Learning outcomes By the end of this chapter, students will: Understand the main stages of the segmentation process (segmentation, targeting, and positioning) Be aware of the various categories of segmentation criteria and their respective contribution to relevant market segmentation Understand the importance of positioning for companies and destinations facing fierce competition both on the domestic and worldwide markets Be introduced to a number of case study scenarios and examples that illustrate various market segmentation, targeting, and positioning approaches. Introduction The purpose of market segmentation is to help companies embark on effective and relevant actions in their markets. Seeking to reach all market segments through common marketing activities is not judicious when a client base is heterogeneous. On the other hand, providing each client with tailor-made services is unrealistic and economically unprofitable. It is only in a few high-end markets, such as tailoring or the luxury hotel sector, that it is feasible and appropriate to allocate resources individual to the company’s best clients. In most cases, market segmentation corresponds to the needs of a business model and its concomitant effectiveness that: show the targeting strategies of one or several groups of clients (segments); unite similar characteristics into one group (individual profiles, purchasing behaviors, etc.); isolate characteristics in between groups/segments. The first step of the market analysis is referred to as market segmentation. This is where companies establish an operational marketing plan adapted to the targeted groups of clients (product/service meeting the clients’ needs, suitable communication plan, attractive and target-appropriate price range, and distribution network providing optimum contact with the target clients)...
eBook - ePubStrategic Marketing
An Introduction
- Tony Proctor(Author)
- 2002(Publication Date)
- Routledge(Publisher)
...Depending on the data source, the map(s) can be displayed in varying colours or shading patterns (with almost unlimited possibilities, according to category, such as proportion of potential or actual customers, per capita spending in a particular product or service group, or sales achievement versus potential). Such maps can be produced with the aid of a spreadsheet package such as Lotus 123. Most mapping sources can produce maps on paper, transparency film, or slides and colour transparency overlays are almost always a possibility. SEGMENTATION, TARGETING AND PRODUCT POSITIONING Having introduced the nature of market segmentation, it is now appropriate to examine how it relates to targeting and product positioning. Marketing executives employ the following steps: • segment the market • target the users • position the products. In order to segment a market, characteristics have to be identified which distinguish among customers according to their buying preferences. Profiles of market segments which reflect different combinations of these characteristics then have to be constructed. To target the users, the financial appeal of all segments should be assessed and segments which have the greatest appeal should be selected for targeting. The selection cr iteria should take account of the relative financial attractiveness of the segments and the organization’s capability to exploit them. In positioning a product, one should aim to match it with that segment of the market where it is most likely to succeed.This involves identifying possible positions for products within each target segment and then producing, adapting and marketing them towards the target market. The product or service should be positioned in such a manner that it stands apart from competing products...
eBook - ePub- Richard M.S. Wilson(Author)
- 2010(Publication Date)
- Routledge(Publisher)
...The majority of writers, however, acknowledge the very real strategic importance of segmentation and, in particular, the ways in which it enables the organization to use its resources more effectively and with less wastage. 9.3 The Nature and Purpose of Segmentation During the past 30 years, market segmentation has developed and been defined in a variety of ways. In essence, however, it is the process of dividing a varied and differing group of buyers or potential buyers into smaller groups, within which broadly similar patterns of buyers’ needs exist. By doing this, the marketing planner is attempting to break the market into more strategically manageable parts, which can then be targeted and satisfied far more precisely by making a series of perhaps small changes to the marketing mix. The rationale is straightforward and can be expressed most readily in terms of the fact that only rarely does a single product or marketing approach appeal to the needs and wants of all buyers. Because of this, the marketing strategist needs to categorize buyers on the basis both of their characteristics and their specific product needs, with a view then to adapting either the product or the marketing programme, or both, to satisfy these different tastes and demands. The potential benefits of a well-developed segmentation strategy can therefore be considerable, since an organization should be able to establish and strengthen its position in the market and, in this way, operate more effectively. Not only does it then become far more difficult for a competitor to attack, but it also allows the organization to build a greater degree of market sector knowledge and customer loyalty. Although the arguments for segmentation appear strong, it is only one of three quite distinct approaches to marketing strategy which exist...
eBook - ePub- David Campbell(Author)
- 2003(Publication Date)
- Routledge(Publisher)
...A business may operate in one or more product markets. In addition, a business will be interested in understanding markets to which it is considering entry on the basis of its core competences and also markets for substitute products. Each of these markets will have its own characteristics and can be analysed in terms of: customer needs and motivations; unmet customer needs; market segments and their profitability; the number of competitors to the market and their relative market shares; the number of customers and their relative purchasing power; access to distribution channels; potential for collaboration with customers; ease of entry; potential for competence leveraging; need for new competence building. Unless an organization's products are sold at a profit, the business will ultimately fail. Market-driven businesses that set out to meet existing customer needs, anticipate their currently unmet needs and actually seek to shape the needs of their customers are likely to be the most successful. For example, the Dutch electronics company Philips created a new customer need when it developed and launched the CD format for music and computer software. Market subgroups An important part of understanding the market is identifying subgroups within the market that share common needs. Such shared characteristics will cause specific customer groups to have different needs and to act and behave differently to other customer groups (or segments). Fundamentally, segmentation means subdividing the total market into customer subgroupings, each with their own distinctive attributes and needs. Customer groups are commonly segmented according to demographic variables (or ‘people dividers’) such as age, sex, occupation, socio-economic grouping, race, lifestyle, buying habits, geography (i.e. where they live), although other segmentation instruments are widely used (see Chapter 5)...
eBook - ePubThe Essential Management Toolbox
Tools, Models and Notes for Managers and Consultants
- Simon Burtonshaw-Gunn(Author)
- 2009(Publication Date)
- Wiley(Publisher)
...The marketing function should not be an isolated internal management activity as it draws a heavy reliance on an understanding of the market needs from customer analysis; from an understanding of the market in terms of growth potential, sustainment and attractiveness and from marketing intelligence. These factors provide reliable information on which to base market decisions which are then reflected in the product design and development, and in the strategic level business planning task. STEPS TO THE PRODUCTION OF A MARKETING STRATEGY NATURE OF DEMAND When examining who buys a company’s products, customers are likely to fall into any one of four categories: Sceptics - once the product enters saturation/maturity and sales level off, the group buying the product is often referred to as the ˋlate majorityʹ or sceptics: • they question the truth in claims • they let the product become ˋtried and testedʹ • they buy it in the late stages of market growth Traditionalists - here the product moves to the decline stage and those who buy it are often referred to as ˋlaggersʹ, ˋnon-adoptersʹ or traditionalists: • they only buy the product when fully established • they cling to the status quo Innovators - are the first customers to buy newly introduced products; normally exhibit dominant values including: • being adventurous • taking risks • eager to adopt and be technically informed Adopters - upon product entering the next stage of growth (i.e. success) with dramatic sales increase; adopters are those who rush and buy the product: • they seek respect • they are well respected by peers • they are also opinion leaders STAKEHOLDER MAPPING: THE POWER/INTEREST MATRIX Analysing the importance of the customers and stakeholders in relation to the business allows companies to know where to concentrate their efforts in managing these important relationships. Reproduced with kind permission of Springer Science and Business Media, from A...
eBook - ePubMarketing Strategy
Overcome Common Pitfalls and Create Effective Marketing
- Jenna Tiffany(Author)
- 2021(Publication Date)
- Kogan Page(Publisher)
...A marketing plan – rather than being a road map – is an assessment of the terrain you’ll be covering. This is what we started in Chapter 2 when we analysed the external and internal contexts of the organization. Marketing planning involves looking at the wider context in which your strategy will be operating. A good marketing plan informs the strategist about the state of the market, the competition, what resources are available and how the consumers are feeling. Marketing planning has many benefits: It provides a structured means of analysing the marketplace, considering its dynamics and causing managers to both question and challenge. It provides a sense of direction, involving staff who can then take ownership of the plan. It identifies what resources are needed and where to focus. It improves communication of proposed actions. It provides a sound basis for control, because actual results can be measured against it. A good marketing plan is a blueprint for marketing your products and services. Essentially, a marketing plan is a step-by-step guide which details how to deliver your marketing strategy. You have already started to ‘plan’ your strategic approach by analysing the macro and micro environments of your organization in Chapter 2. A marketing plan also identifies the resources needed, and the areas which require the most focus (we’ll explore this in Chapter 7). As we uncovered in Chapter 1, everyone in the organization must be moving in the same direction and fulfilling the organization’s vision. Your marketing plan will improve cross-team communication, and make sure that everyone knows what’s required of them to achieve the brand’s goals. The detail of the activities required to implement the plan such as budget, timescales and resources are included in Chapter 7. The measurement for each activity is covered in Chapters 8 and 9. Because, once the plan is defined, it doesn’t stop there...
