1.1.3 : Market Positioning Flashcards
How do businesses use marketing to create value or customers ?
Choose which customers to serve - market segmentation + targeting
Decide how to serve those customer - product differentiation + market positioning
What is value proposition ?
Having chosen which segments to target - businesses need to decide how to compete in those segments
What is a market map ?
Illustrates the range of positions that a product can take in a market based on two dimensions hat are important to customers
What are the advantages of a market map ?
Helps spot gaps in the market
Useful for analysing competitors
Encourages use of market research
What are the disadvantages of using a market map ?
Just because there is a gap doesn’t mean there is a demand
Not a guarantee of success
Ow reliable is the market research
What are the possible positioning strategies?
Offer more for less
Offer more for more
Offer more for the same
Offer less for much less
What is product differentiation ?
It arises when customers perceive a distinct a difference between your product and the alternatives provided by your competitors
What is the purpose of product differentiation ?
Positioning v competition
Protect and build a brand
Did more value
What are the requirements for effective product differentiation ?
Delivers things that are impotent to customers
Distinctive
Communicative and visible to customers
Not easily copied by competitors
Affordable for the customers
Profitable
What are the ways to add value ?
Build a brand
DeLiver excellent customer service
Add product features
Operate efficiently
What are the business benefits of adding value ?
Charge a higher price
Creates a point of difference it’s competitors
Protection against competitors offering lower prices
Focuses business on its target market segments
