1.1.3 Flashcards
Name 4 sources of competitive advantages.
Quality
Delivery times
Customer service
Reliability
What is market mapping?
A tool used to identify the position of a product within a market.
What is the purpose of market mapping?
To find any gaps in the market.
What are 4 ways to add value to a product?
Branding
Functions and features
customer service
Packaging
3 advantages of market mapping?
Gaps can be identified
Comparisons can be made
Simple to contract
What is adding value to products?
The difference between the selling price and the cost to make the good or service.
What is market positioning?
The area of the market that a business attempts to penetrate.
3 limitations of market mapping?
A gap may not be profitable
Requires primary research = expensive
Only provides an insight at a specific time
What is competitive advantage?
Features of a product that are perceived as superior to competitors.
Why does market mapping not guarantee success?
There may not be demand
What do market maps consist of?
2 variables
What is product differentiation?
Businesses attempt to distinguish its products from competitors.
What is a gap?
A group of customers whose needs are not being met.
Why can you not utilize certain gaps?
High price low quality
Impossible to maintain
What does it mean when a product is defensible?
Business can prevent competitors from copying it.
