1.1.3 - Market Positioning Flashcards
What is market positioning?
Process of deciding where they want to position a product within a market regarding price,quality and branding
What is product differentation?
Distinguishing product/service from rival firms
What is a market map?
A grid showing the possible positions in a market regarding two features
Positives of market maps
- Helps spot gaps
- Useful for analysing competitors
- Encourages market research
- Simple to construct
Limitations of market maps
- Gap doesn’t mean ‘demand’
- Not a guarantee of success
- Only two criteria can be chosen
What is competitive advantage?
Refers features that are perceived superior to rivals by customers
Ways to gain competitive advantage
- Lower prices
- Design
- Service
- Quality
- Promotion
- Delivery times
What is product differentation?
Attempt to distinguish products from competitors
Examples of differentiation
USP or extended product range
How does differentiation help a business
- Increases demand for products and loyalty
- Therefore can charge higher prices
What is added value?
Difference between price of raw materials and selling price
Ways to add value
- Good customer service
- New tech
- Convenience
Benefits of adding value
- Higher price
- Point of difference from competitors
