Edexcel-Market Positioning 1.1 Flashcards

1
Q

Market positioning

A

Process business goes through when launching a product or service to establish them as a specific type of customer.

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2
Q

Market mapping

A

Two dimensional diagram that identifies the position of a product within a market

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3
Q

Market map advantages

A

Market gaps can be identified
Comparisons can be made
Visual illustration of position of a product in the market

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4
Q

Market map disadvantages

A

Not always a demand with the gaps
Not guaranteed success
Data isn’t always reliable

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5
Q

Competitive advantage

A

Refers to the features of a business that are perceived as superior to rivals

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6
Q

Product differentiation

A

Distinguish products from competitors

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7
Q

Product differentiation purpose

A

Develop competitive advantage

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8
Q

Adding value

A

Difference between price charged to consumers and cost of inputs

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9
Q

Usp

A

Something that sets a product apart from its competitors

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10
Q

Effective product differentiation

A

Profitable

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11
Q

Ways to add value

A

Deliver good customer service
Customisation
Marketing

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12
Q

Benefits of adding value

A

Protection against competitors

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13
Q

disadvantage of Product differentiation

A

strain on resources so higher costs

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14
Q

disadvantage of Added value

A

new customers not drawn to added value

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15
Q

What does it mean if there are no spaces on the market map?

A

Their is no opportunity within this area of the market.

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16
Q

Distinctive

A

Means different from competitors

17
Q

Defensible

A

Means that the business can prevent competitors from copying it

18
Q

Examples of sources of competitive advantage

A

Quality
Delivery time
Low price