Identifying products or market niches

AS Business

Task 2

• List as many different markets as you can in 3 minutes

• Do not share your answers!!

• Example • Sports Cars• Televisions • Fashion clothes

Extended task• Now you have 3 minutes to walk

round the room and get more answers.

• You must give an answer to get one

• You can only use 1 person once

So who are the leaders of these markets

How are markets configured (seen) • Markets are divided

into segments

Segments

What do we mean by segments

• Do car manufactures like Ford make a car for everyone?

• Companies target specific groups of individuals

Some ways segments are divided

• Age• Gender (sex)• Income (salary)• Employment• Hobbies & interests• Relationship status (partner)• Family situation (children)

Extended segmentation

• Age• 16 – 21• 22 – 31 • 32 – 41• 42 – 55• 56 – 75 • 75 +

• Gender (sex)• Income (salary)• Employment• Hobbies &

interests• Relationship

status (partner)• Family situation

(children)

Magazines

Target marketing A business may target a particular group, or segment.

It is better to get a product or service right for one small group, than get it wrong for all of them

Niches

• Smaller businesses try to find a gap in the market

• A large business has the money to research and develop products in competitive markets

• Small businesses look for a gap, where there are fewer competitors

Niches

• Finding a product or service that is not often offered by main stream competition

Spotting the gap

• There are many ways in which a gap in the market can be identified

Timing

• Any business could consider changing its opening hours to earlier, later or longer to get new customers that may often shop somewhere else

Size

• If the business made products in a different size would that appeal to a new market

Adapting

• An idea that is working in a certain part of the globe, may be welcomed in different areas.

Location

• Although in the UK internet sales are becoming increasingly more popular, with home delivery offered by almost all businesses.

• Having a business or product that is easy to get to can encourage sales

Impulse purchases

An impulse buy is something you maybe do not need, but will buy as you know you like, and it is easy to do so