Market mapping an Competion by Greg

Market Mapping

An entrepreneur must target which part of the market they think their product would do well in. After they have done that they need to map out that section of the market in a market map. A market map basically shows which parts of the market are being filed such as high quality high price or vice versa. there are also arts of the market that are not so well such as high price low quality. The entrepreneur must then find gaps in the market where they think their product would. they are also limited to where they sell by how much it cost to make their product. for example if the product costs a lot to make they wouldn't put it into the low price section. An example would be that Divine chocolate did a study and found out that a large amount of their customers would be wiling to pay a premium price for their very good quality chocolate. The company then went on to the high price high quality section of the market and beat their competitors to it. Entrepreneurs must do extensive market research to find out if the gap in the market that they are trying to target is going to fulfill customer needs.

Competition

The amount of competition in the market varies between different markets. A competitive market would be the internet book sellers as a lot of the companies sell the same products at very similar prices which means that they make much less profit than they normally would if there was less competition. There are different types of competition. There is direct competition. this is where two companies sell similar or even the same products at similar prices to try and get more customers to leave the other competitor for them. Indirect competition is when two companies although not in the same market are still competing for money coming from the same type of customer.