1.1.3 market positioning

Question 1

market positioning (def.)

Answer 1

the process a business goes through when launching a new product or service

the business decides where they want to position the product in the market with regards to price, quality, branding and customer perception

Question 2

market mapping (def.)

Answer 2

a tool for identifying the position of a product within a market

Question 3

market mapping adv.

Answer 3

market gaps can be identified

comparisons can be made between a business’ products and those of its rivals

simple to construct and offer a visual illustration

Question 4

market mapping dis.

Answer 4

a gap may exist because it is not profitable to fill

may require primary research - can be expensive

only two criteria can be chosen - may be too simplistic

Question 5

product differentiation (def.)

Answer 5

a business trying to distinguish its products from competitors

Question 6

market targeting (def.)

Answer 6

when a business targets its marketing at a specific market segment (or target market)

Question 7

competitive advantage (def.)

Answer 7

the features of a business and its products that are perceived as superior to its rivals by customers

Question 8

what are some sources of competitive advantage?

Answer 8

design and quality

ethical stance

brand image, customer service and reputation

reliability and delivery

price

Question 9

unique selling point (def.)

Answer 9

something that sets a product apart from its competitors in the eyes of consumers

Question 10

methods of adding value

Answer 10

design, packaging and customisation

convenience

customer service

product differentiation, functions and features

marketing and branding