1.1.3 Market Positioning

Question 1

What is Market Positioning?

Answer 1

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

Question 2

How can positioning be achieved?

Answer 2

Positioning can be achieved by changing elements of the marketing mix to meet the needs of the target market

Question 3

What are some Influences on Market Positioning?

Answer 3

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 4

What is Market Mapping?

Answer 4

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

Question 5

What can Market Mapping be used for?

Answer 5

It can be used to:

• analyse consumer buying habits and preferences
• identify what segment of the market is underprovided for and look at producing a product to fill that gap

Question 6

What is a competitive advantage?

Answer 6

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

Question 7

What are some Factors contributing to a competitive advantage?

Answer 7

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