1.1.3 Market Positioning

Question 1

What approaches might a business use to position its products?

Answer 1

-The benefits offered by the products,
- the unique selling point
- the attributes of the products,
-the origin of the product,
- the classification of the product

Question 2

What is a perceptual map for cars?

Answer 2

Look at photos

Question 3

Limitations of market maps?

Answer 3

• It represents a very simplistic version of consumer decision-making.
• It is often time-consuming and expensive to collect this type of data.
• There can be differences between the customer’s perception of a product and the actual qualities of the product.

Question 4

How can a business develop a competitive advantage (PPPC)

Answer 4

• Product design. - If a firm kind develop a product that has superior design, this might appeal to a significant portion of a market.
• Product quality - Often high-quality products is a common way of gaining a competitive edge in the market. The main advantage of this approach is that a premium price can be charged.
• promotion- Effective cremation use increase of advertising might give a firm it competitive edge
• Customer service. Some businesses pay less attention to the product itself and rely on high-quality customer service to gain a competitive edge.

Other examples :
- delivery times
- economies of scale
- ethical stance

Question 5

What is the purpose of product differentiation

Answer 5

• Flexible pricing
• Recognition
• Extended product range
• brand development

Question 6

Some ways a business can add value to a product and services

Answer 6

• Bundling
• customer service
• speed of repose to customers
• packaging
• frequent buyer offers
• customisation

Question 7

Advantages of adding value to a product

Answer 7

• It may be possible for a business to charge a higher price
• Adding value can be used to differentiate a product and gain a competitive edge
• Adding value may help a business protect yourself from competitors, charging lower prices in a bid to steal customers.

Question 8

Added value

Answer 8

• The extra features that may be offered by a business when selling a product such as high-quality customer service which helps to exceed customer expectations.

Question 9

Competitive advantage

Answer 9

Advantage that enables a business to perform better than its rivals in the market.

Question 10

Market maps or perceptual maps

Answer 10

Typically, a two-dimensional diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market.

Question 11

Market positioning

Answer 11

The view consumers have about the quality, value for money and image of a product in relation to those of the competitors.

Question 12

Product differentiation

Answer 12

An attempt by a business to distinguish its products from those of competitors.

Question 13

Reposition

Answer 13

Change the view of consumers have about a product by altering some of his characteristics

Question 14

Unique selling point (or proposition)?

Answer 14

That aspect of feature of a product that clearly distinguishes it from its rivals