1.1.3 Market Positioning Flashcards
1
Q
definition for market mapping
A
Two axis, plus two variables (price and quality) to plot all the competitors in the markets.
2
Q
advantages of positioning maps
A
- gaps in the market
- closest competitors
- if the sales of products are declining
3
Q
disadvantages of positioning maps
A
- just because there is a gap doesn’t mean there is also demand
- how reliable is market research
4
Q
what is a competitive advantage
A
a condition which allows a business to generate more sales and be more profitable than its rivals. To achieve it needs to be different.
5
Q
How can businesses have a competitive advantage
A
- lower costs
- product innovation
- advertising
- product differentiation
- good customer service
6
Q
product differentiation
A
- Unique selling point (USP)
- stand out from competitors
- market and advertise so it is communicated and visible to consumers
7
Q
adding value
A
this means increasing the difference between the cost of making the product and the price the customer pays. this increases profits.
- increase selling price
or - decrease cost of making product
