Edexcel-Market Positioning 1.1 Flashcards
Market positioning
Process business goes through when launching a product or service to establish them as a specific type of customer.
Market mapping
Two dimensional diagram that identifies the position of a product within a market
Market map advantages
Market gaps can be identified
Comparisons can be made
Visual illustration of position of a product in the market
Market map disadvantages
Not always a demand with the gaps
Not guaranteed success
Data isn’t always reliable
Competitive advantage
Refers to the features of a business that are perceived as superior to rivals
Product differentiation
Distinguish products from competitors
Product differentiation purpose
Develop competitive advantage
Adding value
Difference between price charged to consumers and cost of inputs
Usp
Something that sets a product apart from its competitors
Effective product differentiation
Profitable
Ways to add value
Deliver good customer service
Customisation
Marketing
Benefits of adding value
Protection against competitors
disadvantage of Product differentiation
strain on resources so higher costs
disadvantage of Added value
new customers not drawn to added value
What does it mean if there are no spaces on the market map?
Their is no opportunity within this area of the market.
