1.1.3 market positioning

Question 1

market mapping

Answer 1

in order to identify a gap in the market, businesses contract a diagram of where competitors are on two axis

Question 2

competitive advantage

Answer 2

a way that the business can make its products or services appear superior to the competition to the target market

Question 3

cost advantage

Answer 3

a business has skilled worked force and efficient operations to provide low cost value to consumers

Question 4

differentiation advantage

Answer 4

resources are used by a business to create superior value for the consumer

Question 5

product differentiation

Answer 5

where a product is different from the competition in some way

Question 6

methods of differentiation

Answer 6

reputation
customer service / after sales service.
value for money
product features

Question 7

adding value

Answer 7

the difference between the price that is charged to the customer and the costs of inputs required to create the product or service

Question 8

how can a business add value?

Answer 8

design - develop new technology / design features.
production - achieving quality and efficiency adds value.
marketing - creating an image that makes the product more desirable

Question 9

benefits of adding value

Answer 9

charge a higher price = increase profit.
protection against competitors offering lower prices.
customer loyalty