1.1.3 Market Positioning Flashcards
Define market positioning
Where a product is placed in the market relative to its competitors
Positioning can be achieved by
Changing elements of the marking mix to meet the needs of the target market
Influences on positioning includes
Internal constraints-budget
Internal strengths - innovation
Market conditions - competition
External environment- economy
What is market mapping
A diagrammatic technique that enables businesses to display the perceptions of customers
Used to analyse consumer buying habits and preferences
High quality Low price + High price
Low quality
What is a competitive advantage
Is a feature of a business that allows it to perform more successfully than others in the market
- same quality , lower price
- superior product , with differentiation
Factors contributing to a competitive advantage include
- product differentiation
- ability to add value
- operational efficiency
- position relative to competitors
Describe low cost
- a firm that operates with the lowest cost can charge the lowest price but does not necessarily have to
- both operation and financial objectives must focus on cost minimisation
- price is a key Element in the marketing mix
- low cost can be successful in either mass or niche market
What are the 4 elements of marketing
Price
Place
Product
Promotion
Describe differentiation
It can be successful in either a mass of niche market
- being able to offer a product or service that stands out from the competitors
- unique selling point
Product differentiation allows firms to
Add value
Charge premium prices
Gain brand loyalty
Value can be added in many ways including
Manufacturing Marketing Technology Customer service USP
Input + process =
Added value
