1.1.3 Market positioning

Question 1

Market positioning

Answer 1

• how individual products/brands are seen in relation to their competition by consumers
• may stem from pricing, marketing, quality

Question 2

Product differentiation

Answer 2

• occurs when businesses make their product different from competing products
• may involve giving it unique features

Question 3

market mapping

Answer 3

• use of a grid
• showing 2 features of market (price/consumer age)
• individual brands/business added to grid
• potential niches/gaps in market
• typically products compared between all competitors
• gives firm an insight into competition with dams market as its own product

Question 4

ADVS and DIS of market mapping

Answer 4

ADV:

• spot gaps
• help differentiate its products from competition

DIS:

• hard to categorise same products/services
• gap does not mean there is need for product
• more market research

Question 5

Added value

Answer 5

• value of finished good/service over and above the cost of achieving it
• this is achieved when a business increase the worth of its factor inputs by creating new output

Question 6

Factor inputs

Answer 6

4 factors of production

CELL 
capital 
enterprise 
labour 
land

Question 7

6 ways to achieve added value

Answer 7

1-branding 
2-USP 
3-manufacturing 
4-marketing 
5-customer service 
6-technology

Question 8

benefits of adding value

Answer 8

• charge higher prices
• point of differentiation
• protecting from competitors trying to steal customers by charging lower prices
• focusing a business more closely on its target market segment

Question 9

measuring added value

Answer 9

can be measured in terms of financial growth

input + process = added value + output