1.1 Business key terms (part 3)

Question 1

added value

Answer 1

the extra features that may be offered by a business when selling a product
such as: high quality customer service
which then exceeds consumers expectations

Question 2

competitive advantage

Answer 2

the advantages a business has over its rivals, in provision of its products + services, which enables it to operate better in the market

Question 3

market maps/perceptual maps

Answer 3

typically a 2D diagram that shows two of the attribute or characteristics of a brand and those of rival brands in the market
e.g. price (high and low)
quality (high and low)

Question 4

market positioning

Answer 4

the view consumers have about the quality, value for money and image of a product in relation to those of competitors

Question 5

product differentiation

Answer 5

an attempt by a business to distinguish its products from those of competitors

Question 6

reposition

Answer 6

change the view consumers have about a product by altering some of its characteristics

Question 7

unique selling point (USP)

Answer 7

the aspect or a feature of a product that clearly distinguishes it from its rivals