3. Market positioning

Question 1

market orientated

Answer 1

An approach to business which places the needs of consumers at the center of the decission-making process

Question 2

Product orientated

Answer 2

An approach to business which places the emphasis upon the production process and the product itself

Question 3

market positioning

Answer 3

The view consumers have about the quality, value for money and image of a product in relation to those of competitors

Question 4

Type of market segmentation:

Answer 4

• Geographic segmentation
• Demographic segmentation
• Psycographic segmentation
• Behavioural segmentation

Question 5

Benefits of market segmentation:

Answer 5

• Businesses that produce different products for different market segments can increase in revenue
• Customers may be more loyal to a business that provides products that are tailored specially to them
• Businesses can avoid wasting promotional resources by not targeting products at customers that do not want them
• Some businesses can market a wider range of goods to different customers groups

Question 6

Competitive advantage of a product or service:

Answer 6

• Product design
• Product quality
• Promotion
• Customer service
• Delivery times
• Economies of scale
• Flexibility
• Ethical stance
• Focusing on a particular market segment

Question 7

Purpose of product differentiation

Answer 7

• Flexible pricing
• Recognition
• Extend product range
• Brand develpment
• Overcome competiton

Question 8

adding value

Answer 8

offering extra features when slling a product such as high-quality customer service, which helps to exceed customer expectations

Question 9

market segments

Answer 9

parts of a whole market where a particular customer group has similar characteristics

Question 10

reposition

Answer 10

change in the view consumers have about a product by altering some of its characteristics

Question 11

USP

Answer 11

the aspect or feature of a product that clearly distinguishes it from its rivals