1.1.4 Market positioning Flashcards
What is the market position?
It’s defined by customers and is the place a product occupies in their minds in comparison to competitors
What does market positioning link with?
-Market mapping
-Market strategy
-Competitiveness
(help bus identify how ppl see the, and what they wanna change)
What is a marketing map?
A range of positions a product can sit on in a market based on 2 dimensions
What are an advantage and disadvantage of a marketing map?
-Spot a gap in the market
-Maybe a gap but no demand
What is a competitive advantage?
Where customers choose products based the benefit the product offers them
What are the position strategies for a competitive advantage?
-Offer more for less (good quality, low price)
-Offer more for more (high quality, high price)
-Offer more for the same (new feature, same price)
-Offer less for much less
What is product differentiation?
Businesses distinguish a product or service from other similar ones available in the market
What is the purpose of product differentiation?
-Build a brand
-Add value
What is a unique selling point?
Something that sets a product apart from its competitors in the eyes of a customer
What is added value?
The difference between the price of a finished product and the cost of making it
What 2 ways can you add value?
-Branding
-Good customer service
What are the benefits of adding value?
-Charge a higher price
- Creates differentiation with competitors
