1.1.3 Market Positioning

Question 1

Positioning

Answer 1

Where a product is placed in the market relative to its competitors

Question 2

Influences on positioning include:

Answer 2

*Internal constraints e.g. budgets
*Internal strengths e.g. creativity and innovation
*Market conditions e.g. degree of competition
*External environment e.g. state of the economy

Question 3

Market mapping

Answer 3

A market map is a diagrammatic technique that enables businesses to display the perceptions of customers

Question 4

Name three things that market mapping is used for

Answer 4

Any three from: -Compares product and consumer variables.
-Analyses buying habits and preferences (e.g. price vs quality).
-Identifies market gaps for new products.
-Compares products across competitors.
-Provides insight into market competition.

Question 5

Competitive advantage of a product or service

Answer 5

Competitive advantage is a feature of a business that allows it to perform more successfully than others in the market

Question 6

Example of competitive advantage

Answer 6

-Same quality of product at a lower price
-Superior product achieved through differentiation

Question 7

Factors contributing to a competitive advantage include:

Answer 7

-Product differentiation
-Ability to add value
-Operational efficiency
-Position relative to competitors