1.3 Market Positioning

Question 1

Market positioning

Answer 1

Market positioning is how consumers perceive a product. It simplifies choices by grouping products based on factors like quality, status, and value.

Question 2

Perception factors: product benefits

Answer 2

Emphasis on safety, quality or value
Eg. In cars

Question 3

Perception factors: unique selling point (USP)

Answer 3

Unique feature setting the product apart, e.g., dandruff removal in shampoos.

Question 4

Perception factors: product attributes

Answer 4

Specific qualities highlighted in marketing
Eg. M&Ms slogan

Question 5

Perception factors: product origin

Answer 5

Place-linked name (Lancashire cheese)

Question 6

Perception factors: product classification

Answer 6

Names suggesting comparisons
Eg. “I can’t believe its not butter”

Question 7

Repositioning

Answer 7

Adjusting products’ target market, features, or image due to changing markets, e.g., detergent repurposing after decline in cloth nappy demand.

Question 8

Market mapping purpose

Answer 8

To understand brand position based on consumer perception, e.g., if perceived as low-quality, sales impact will reflect this, even if the business perceives it as high-quality.

Question 9

Market mapping uses

Answer 9

. Determine target market attributes
. Gauge acceptable price and necessary promotion

Question 10

Market mapping uses

Answer 10

. Determine target market attributes
. Gauge acceptable price and necessary promotion

Question 11

Market mapping limitations

Answer 11

. Limited to two attributes.
. More brand-specific; corporate brands might not benefit as much.
. Requires costly primary market research.
. Intuitive maps lack data precision and may reflect management bias.

Question 12

Competitive advantage

Answer 12

Unique features giving a product an edge, making it desirable to consumers.

Question 13

Strategies for competitive advantage: product design

Answer 13

Unique, aesthetic or ergonomic appeal

Question 14

Strategies for competitive advantage: product quality

Answer 14

High quality allow premium pricing
Eg. Savile Row suits

Question 15

Strategies for competitive advantage: promotion

Answer 15

Persuasive advertising to enhance consumer perception

Question 16

Strategies for competitive advantage: customer service

Answer 16

High service quality enhances customer satisfaction
Eg. Enterprise car rentals

Question 17

Strategies for competitive advantage: delivery speed

Answer 17

Fast delivery as key selling point

Question 18

Strategies for competitive advantage: economies of scale

Answer 18

Lower production costs enable competitive pricing

Question 19

Strategies for competitive advantage: flexibility

Answer 19

Customisation options increase appeal

Question 20

Strategies for competitive advantage: ethical stance

Answer 20

Ethically sourced products attract conscious consumers

Question 21

Strategies for competitive advantage: focused segments

Answer 21

Target niche segments for tailored competitive edge

Question 22

Product differentiation purpose

Answer 22

To stand out in competitive markets by making products distinct through physical or perceived uniqueness.

Question 23

Product differentiation advantages (5)

Answer 23

. Flexible Pricing: Allows premium pricing, especially for perceived differences.
. Market Recognition: Unique packaging or features catch consumer attention.
. Range Extension: Serve multiple market segments, e.g., different cruise options.
. Brand Development: Sustained differentiation builds strong brands, e.g., Coca-Cola.
. Competitive Edge: Perceived or real differences attract new customers, increasing market share and economies of scale.

Question 24

Adding value

Answer 24

Enhancing product features beyond the standard expectations.

Question 25

Adding value methods

Answer 25

. Bundling: Package benefits, e.g., inclusive holiday deals.
. Customer Service: Knowledgeable and attentive staff improve experience.
. Response Speed: Fast service reduces wait times, e.g., first-class airline perks.
. Packaging: Attractive wrapping adds perceived value.
. Frequent Buyer Offers: Loyalty programs for repeat purchases.
. Customization: Tailored options make products feel unique.

Question 26

Adding value benefits

Answer 26

. Enables premium pricing and creates brand loyalty.
. Differentiates products from competitors, attracting consumers.
. Helps the business focus closely on target market segments.