1.1.3 Market Positioning Flashcards
What is a market map?
A diagram of competitors on to axis Illustrating the range of position as a product can take on the market
What are the positives of market maps ?
Identify gaps in the market
analyse competitors
Force business to carry out market research
What are the negatives of market mapping? 4(
May be in accurate due to bias
variables are too
simplistic unless we use specific numbers elements of subjectivity which can impact outcomes
A gap does not mean there is the m demand 
What is a competitive environment?
More than one business competing in the same market
What is direct competition and indirect competition
Direct competition is when the business sells the same products to the same target market and
indirect competition is where they sell different products but compete with the same target market
How is the competitive advantage gained ?
Gained by offering consumers greater value lower prices of providing better benefits
Ethical stance
Product design.
Customer service
What is a diagram used to gain competitive advantage?
Porters generic strategies
What are the two ways Porter said he can achieve a competitive advantage?
Cost focus
Business make a cheaper for materials keep the price the same
and differentiation focus- Add more value to the product
What are porters five forces?
Board cost leadership differentiation leadership everything they do has to be differentiated and low-cost
Narrow cost focus and differentiation focus only one aspect has to be lower cost or only one segment of the products have to be differentiated
How do we achieve low-cost approach?
High capacity utilisation
bargaining power the more we produce the more negotiating power we have
large-scale economies of scale
effective use of tech
access to the Wide distribution channels
How do we achieve differentiation approach?
Superior product quality - benefits of durability
branding - brand loyalty
industry- wide distributions on access all major channels
consistent promotion -dominated by advertising
What is the third way we can differentiate our products ?
Adding value through adding features- extra features that goes above consumers expectations
Eg - fridge- may offer free delivery
Instal fridge
And adding value - increase in price through the increase in value of the products as a result of the businesses activity
What are the 5 ways we can add value ?
Brand- the name or logo we associate with a business
Customers are loyal to brands - will pay more
Convenience - how easy it is for a customer to use business - pay more
USP - unique selling point - makes product different from everyone else
Quality - has better quality than your competitors
Design - design diff from competitors
What are the limitations of porters generic strategies?
Not as relevant in a very dynamic market
Not useful in a crisis situation
Oversimplifies market
What is the use of the Boston matrix ?
Where are we with you review the product portfolio for the future strategy and budget
