1.1.3 market positioning

Question 1

what does market positioning mean

Answer 1

where a product is placed in the market relative to its competitors

Question 2

how can market positioning be achieved

Answer 2

by changing elements of the marketing mix to meet the needs of the target market

Question 3

what influences market positioningr

Answer 3

• internal constraints e.g budgets
• internal strengths e.g creativity and innovation
• market conditions e.g degree of competition
• external environment e.g state of the economy

Question 4

what does market (positioning) map

illustrates

Answer 4

it illustrates the range of “positions” that a product can take in a market based on two dimensions that are important to customers

Question 5

what are the advantages of market map

Answer 5

• helps spot gaps in the market
• useful for analysing competitors
• encourages use of market research

Question 6

what are the dissadvantages of market positioning

Answer 6

• just because there is a “gap” doesnt mean there is demand
• not a guarantee of success
• how reliable is the research?

Question 7

what are the positioning and compwtitive advantage

Answer 7

• customers choose products based on the value proposition
• providing superior value than the competition is a source of competitive advantage (if it can be sustained)
• there are various possible values differences which cam deliever competitive advantage

Question 8

what are the possible positioning strategies

Answer 8

-offer more for less
(eg aldi:good quality at low prices)
-offer more for more
(eg high priced luxury products with prestige value)
-offer more for the same
(e.g introduce new features and better performance for the same price)
-offer less for much less
(e.g no-frills low cost flying and hotels; good quality,back to basics and low price)

Question 9

what are some examples of some dimensions you could use for a marketing map

Answer 9

low price–>high price
basic quality–>high quality
necessity–>luxury
light–>heavy