1.1.3 Market Posititiining Flashcards
What is market positioning?
Market positioning in is the process a business goes through when launching a new product of service
What is market mapping?
Market mapping is a tool for identifying the position of a product within a market
What are the 2 criteria usually chosen on a market map?
Price and quality
What are the advantages of a market map?
- Market gaps can be identified
- Comparisons can be made easily
- Market maps are simple to make
What are the disadvantages of a market map?
- A gap doesn’t always mean it is profitable to fill
- Mapping a market may require primary research which can be expensive
- Only 2 criteria
- Markets are often dynamic so only show at a specific point in time
What are the sources of competitive advantage?
Delivery times
Customer service
Price
Reliability
Brand image & reputation
Ethical stance
Design
Quality
What is product differentiation ?
Product differentiation is an attempt by a business to distinguish its products from competitors
What is adding value?
Adding value is the difference between the price that is charged to the customer and the cost of inputs required to create the product
What are methods of adding value?
- Marketing & branding
- Functions & features
- Packaging
- Customisation
- Customer service
- Convenience
- Design
- Product differentiation
