1.1.3 : Market Positioning

Question 1

What is market positioning?

Answer 1

Where a product is placed on the market relative to its competitors - positioning can be achieved by changing elements of the marketing mix to meet the needs of the target market

Question 2

What are the influences on positioning ?

Answer 2

Internal constraints (budgets)
Internal strengths (creativity + innovation)
Market conditions ( degree of competition)
External environment (state of the economy)

Question 3

What is market mapping ?

Answer 3

A market map illustrates the range on positions that a products can take in a market - it is based on two variables / factors that are importantly to others

Question 4

What are the advantages of market mapping ?

Answer 4

Useful for analysing competitors
Helps spots gaps in the market
Encourages the use of market research that has been proven to reduce the likelihood of failure

Question 5

What are the advantages of market mapping ?

Answer 5

Just because there is a gap in the market , it doesn’t mean there is a demand
Products and services change constantly so a market map never stays accurate for long
Need a large sample size for accuracy

Question 6

What is the link between positioning and competitive advantage ?

Answer 6

Customers choose products based on the value proposition - providing superior value than the competition is a source of competitive advantage
Offer more for less
Offer more for more
Offer more for the same
Offer less for more
Offer less for less

Question 7

When does product differentiation occur ?

Answer 7

It arises when competitors perceive a distinct difference between your products and this offered by your competitors

Question 8

What are the requirements for effective product differentiation ?

Answer 8

Delivers things that are important to customers
Distinctive - compared to competitors
Communicated and visible with customers
Not easily copied by competitors
Affordable by the target customers
Profitable