1.1 meeting customer needs (booklet 3) Flashcards
Market positioning
views customers have about quality, value for money and image of product
Market map
a 2d diagram which compares two features of a brand e.g quality and price
why is market mapping good
it can identify a gap in the market by looking at what competitors have to offer
Competitive advantage
an advantage, USP, which enables businesses to perform better than rivals
what are competitive advantages of market mapping
- design, differentiation
- quality
- promotion, advertising
- customer service
- delivery times
- ethical stance, fair-trade
- focusing on particular market segment
purpose of product differentiation
to gain competitive edge
- flexible pricing, create perceived high quality, allows premium pricing
- recognition, appealing packaging
- extended product range, e.g first class
- brand development, differentiate, usp
- overcome competition, outcompete rivals
how can you add value to items
- bundling items
- customer service
- speed of response to customers
- packaging
- frequent buyer offers
- customisation, branding, logos
product differentiation
attempt by business to distinguish from competitors by perception of customers, rather than actual difference
usp
aspect or a feature that distinguishes it from its rivals
adding value
extra features which may be added e.g high quality customer service.
