1.1.3 market positioning

Question 1

1.1.3

what is market positioning?

Answer 1

the perception consumers have about products

Question 2

1.1.3

what affect your perceptions of a product?

Answer 2

• unique product features
• through value for money
• origin of the product
• attributes of the products

Question 3

1.1.3

what is a market map?

Answer 3

a visual way for a business to identify their position in the market and identify gaps

Question 4

1.1.3

pros and cons of market maps?

Answer 4

+ businesses gain a better understanding of its competition
+ identifies gaps in the market
+ compares businesses
- markets and consumer perceptions are very complex
- requires a lot of primary research

Question 5

1.1.3

what is competitive advantage?

Answer 5

a way that business can make its products/services appear superior to the competition and the market

Question 6

1.1.3

what is cost advantage and reputation?

Answer 6

cost advantage - a business has a skilled work force and efficient operations to provide low cost value to consumers

reputation - brand values are hard to replicate and may take years to build

Question 7

1.1.3

benefits of products differentiation

Answer 7

• customer loyalty
• charge a premium price
• overcome competition

Question 8

1.1.3

how can businesses make their products different?

Answer 8

• through reputation
• through product features
• better customer service and after sales service
• through value for money

Question 9

1.1.3

what is adding value?

Answer 9

the process of increasing worth of a product/ service by modifying them

Question 10

1.1.3

how can you add value?

Answer 10

• branding/ packaging
• increasing quality and efficiency
• good customer service
• having a brand