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.
What is market mapping?
Market mapping is a tool for identifying the position of a product within a market.
What are the advantages of market mapping?
Gaps in the market can be identified.
Comparisons can be made between a business’ products and those of its rivals.
Market maps are easy to make and analyse.
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.
Markets are often dynamic and a market map only provides insight at a specific point in time.
What is product differentiation?
Product differentiation is an attempt by a business to distinguish its products from those of competitors.
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.
What are some of the methods in which a business can add value?
Customer service
Branding and marketing
Functions and features
Packaging
Customisation
