1.1.2-3 Market positioning and segmentation Flashcards
define market positioning?
view that consumers have on quality and image of the product in relation to rivals
3 approaches to market positioning?
emphasising on one product
USP
origin of product
What are market/perceptual maps?
two dimensional diagrams with two attributes of brand and rivals
What are the limitations to market maps?
they can analyse 2 attributes at a time
What is competitive advantage?
it enables businesses to perform better than its rivals
What are three ways in which businesses can gain competitive advantage?
product design
product quality
customer service
What is product differentiation?
gain competitive edge over rivals
What are three reasons to businesses gaining product differentiation?
Flexible pricing - can charge higher prices
Recognition - make products more appealing
Extend product range
What is added value?
extra features that affect customers expectations
2 ways of giving businesses added value?
Bundling - putting together package of benefits
Speed response to customers - people don’t like waiting
What is market segmentation?
part of whole market where customer group has similar characteristics
What is geographic segmentation?
depending on where a business target audience is it can alter what they want
What is demographic segmentation?
businesses divide into markets according to age, gender, income, and religion
What are the limitations of demographic and geographic segmentation?
Can range dramatically and can change quickly
What is psychographic segmentation?
Groups of consumers according to their attitudes, opinions and lifestyles
