1.1.3 - market positioning Flashcards
1
Q
two key judgements required in successful market mapping
A
- choosing the right variables to place on each axis
- placing rival brands in the correct places on the map
2
Q
why use a market map?
A
- allows a business to identify gaps in the market more easily
3
Q
two major generic routes to finding a competitive advantage
A
- be the lowest cost producer
- find a sustainable point of differentiation
4
Q
key to a competitive advantage
A
- it should be sustainable in the long term
5
Q
actual product differentiation (tangible)
A
- design
- different functions
- taste
- performance
6
Q
perceived product differentiation (psychological)
A
- branding
- advertising
- sponsorship
- celebrity endorsement
7
Q
the purposes of product differentiation
A
- insulating the product from the actions of competitors
- allowing prices to be increased without a major fall in demand or sales
8
Q
how businesses may add value
A
- through tangible, engineering methods (e.g. creating a great design)
- through perception (e.g. advertising and branding)
