4: Market Positioning Flashcards
1
Q
Market Map (2)
A
- A grid plotting where each existing brand sits
- On scales based on two important features of a market
2
Q
Benefits of Market Mapping (3)
A
- Visual representation
- Used to spot untapped market niches
- And to identify where competition is concentrated
- Allowing firms to position their product/service
- In order to maximise sales
3
Q
Downsides of Market Mapping (3)
A
- Opinion based
- Time consuming (opportunity cost)
- What not how
4
Q
How to achieve actual product differentiation (5)
A
- Unique product function
- Unique taste
- Ergonomic factors (Ease of use)
- Aesthetic factors
- Superior peformance (E.g. Dyson)
5
Q
How to achieve percieved product differentiation (3)
A
- Persuasive advertising
- Celebrity endorsment
- Sponsorship
6
Q
Benefits of product differentiation (6)
A
- Lower price elasticity
= Less vulnerable to external factors
- e.g. actions of competitors
- Also, able to charge a higher price
= Higher contribution per unit
= Improved gross profit margin
7
Q
Product differentiation is an example of a _____________. Another example is _____
A
- Competitive advantage
- Cost
