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L2: Market Mapping

Revision and practice on constructing and interpreting market maps.

Key vocabulary: Market Map, Perceptual Map, Market Positioning

Key Concepts

What Is a Market Map?

A market map (also known as a "perceptual map") is a simple two-dimensional grid that plots products or businesses based on two key variables chosen by the researcher. The most common variables are price (low to high) and quality (low to high), but any two relevant dimensions can be used, such as convenience vs choice, or traditional vs modern.

Purpose of a Market Map

  • To spot a gap in the market
  • To gain an understanding of competitor activity and where rivals are positioned

Value and Limitations of Market Mapping

Value of Market MappingLimitations of Market Mapping
Value of Market MappingEasy to understand — it's visualLimitations of Market MappingSubjective — depends on the researcher's judgement of where a brand sits
Value of Market MappingIdentifies opportunities/gapsLimitations of Market MappingOnly uses two variables — real markets are more complex
Value of Market MappingSupports positioning decisionsLimitations of Market MappingA gap doesn't always mean a viable opportunity — there may be a gap because demand doesn't exist there
Value of Market MappingUseful for communicating decisions to managersLimitations of Market MappingStatic snapshot — only shows one point in time, and markets move

Real-World Case Studies

The UK gym market — a real market map in three tiers

UK gym membership has settled into three broad tiers that map neatly onto a price/quality-of-facilities grid: budget gyms like PureGym (typically £15–£25 a month, no-frills, no long contracts), mid-range chains (around £40–£60 a month), and premium clubs like David Lloyd (£100-plus a month, pools, spa facilities and family amenities, usually on 12-month contracts). PureGym has built its position on volume — low price, high membership numbers — while David Lloyd competes on quality and experience for a smaller, higher-spending customer base. Both are highly successful, but from clearly different positions on the same market map.

Source: verified via search, September 2026 — Male Optimal and Morningfold's 2026 UK gym chain comparisons.

The rise of niche online retailers — filling a market map gap

Alongside large generalist retailers, a growing number of UK online businesses have succeeded by identifying a clear gap on a market map and building a brand specifically around it — for example specialising in eco-friendly household goods, personalised gifts, or vintage/collectable items, rather than trying to compete directly with broad-range retailers. Commentators note that the most successful of these niche e-commerce businesses tend to understand their specialist stock at a level a generalist competitor can't easily match, which is exactly the kind of "gap" a market map is designed to help a business spot.

Source: verified via search, September 2026 — Daily Business Group coverage of the rise of niche online retailers in the UK.

Matching Activity

Tap a term, then tap its matching definition.

0 of 4 matched

Quick Knowledge Check

Short, snappy recall questions — tap to reveal the answer.

What is another name for a market map? (1 mark)

A perceptual map.

Give one limitation of market mapping. (1 mark)

Any one of: subjective, only uses two variables, a gap doesn't always mean a viable opportunity, static snapshot.

What are the two most commonly used variables on a market map? (2 marks)

Price (low to high) and quality (low to high).

Key Term Flashcards

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Tap a card to flip it, then rate yourself.

Market Map
A two-dimensional grid plotting products/businesses against two chosen variables — usually price and quality.
Perceptual Map
Another name for a market map.
Market Positioning
How a brand is perceived by customers relative to competitors on key variables like price and quality.
Static snapshot (limitation)
A market map only shows one point in time — competitor positions can shift after it's drawn.

A*/A Stretch

Examiner's eye

A strong exam answer doesn't just describe where a brand sits on a market map — it evaluates whether an apparent "gap" is genuinely worth entering, considering whether there's real customer demand there, what barriers to entry exist, and how rivals might react if the business tries to fill it.

Synoptic link

Connecting to market segmentation: a market map and market segmentation both help a business understand a market's structure, but they answer different questions — a market map shows how existing products/brands compare to each other, while segmentation shows how customers themselves differ. Using both together gives a fuller picture: segmentation identifies a target group, and a market map shows whether there's an unclaimed position to serve them.

Try This With AI

Before using this: AI tools can get facts or mark scheme details wrong, and quality varies by tool. Always check anything factual against your notes or ask your teacher.

Give me a short scenario describing 4 competing brands in one UK market. Ask me to describe where I'd plot each one on a price/quality market map, and to identify one possible gap. Then challenge my answer by asking why that gap might not actually be a viable opportunity.