1.1 Competitive Advantage and Product Differenciation

Question 1

What is a competitive advantage?

Answer 1

A set of unique features of a business that company and its products that are perceived by the target market as significant and superior to the competiton

Question 2

Easiest ways to gain an advantage:

Answer 2

Lowest cost producer
Differentiate your products

Question 3

How can an advantage be achieved?

Answer 3

Offering more for less
More for a higher price
More for the same price
More for a lower price

Question 4

How can an advantage be achieved?

Answer 4

Offering more for less
More for a higher price
More for the same price
Less for a much less price

Question 5

What is product differentiation:

Answer 5

The unique qualities of a product that lead to a difference between the product and competitors products.

Question 6

Actual ways that a product can be differentiated in:

Answer 6

Design
Features
Performance

Question 7

Perceived ways a product can be differentiated

Answer 7

Branding
Advertising
Sponsorship
Celebrity endorsements

Question 8

Purpose of product differentiation:

Answer 8

Increase customer willingness to pay and generate demand sufficient to recoup added costs and generate enough profits to make the strategy worthwhile