1.1.3 Market positioning Flashcards
What is market positioning?
Market positioning refers to the process a business goes through when launching a new product or service, where they want to position the product depending on the price, quality and branding.
What is market mapping?
Market mapping is a tool for identifying the position of a product within a market.
What are the limitations of market mapping?
- A gap in the market may exist because it is not profitable to fill
- Mapping a market may require primary research which can be expensive
- Only two criteria can be chosen which may prove too simplistic
- Markets are often dynamic and a market map only provides insights at a specific time
What usefulness does market mapping offer?
+ Market gaps can be identified which may enable a business to come up with ideas for new products
+ Comparisons can be made between a business’ products and those of its rivals
+ Market map are simple to construct and offer a visual illustration
Examples of competitive advantage.
/ Quality
/ Delivery times
/ Low price
/ Reliability
/ Ethical stance
/ Design
What is product differentiation?
Product differentiation is an attempt by a business to distinguish its products from those of competitors
What is competitive advantage?
Competitive advantage refers to the features of a business and its products that are perceived as superior to its rivals by customers
What is adding value?
Adding value is the difference between the price that is charged to the customer and the cost of inputs required to create the product or service. For example customers are willing to pay more for a potato that is packaged as oven chips.
Methods of adding value.
/ Marketing and branding
/ Functions and features
/ Customer service
/ Customisation
/ Packaging
