KT7: 1.3.6 The competition, 1.6.1 Revenue and costs

Question 1

Market positioning

Answer 1

Market positioning - the way a product is seen in comparison with rival products. Market research helps to position products so that businesses can match customer preferences or appeal to different market segments.

Question 2

Repositioning

Answer 2

Repositioning - means targeting a different market segment, on with more potential sales revenue and/or profit.

Question 3

Market map

Answer 3

Market map - a tool that plots brands in the market according to how they meet customers’ needs. It allows a business to position individual products effectively.

Question 4

Competitive advantage

Answer 4

Competitive advantage - having an edge over rival products. There are many ways of making the perception of a product positive, depending on the nature of the market and its consumers.

Question 5

Product differentiation

Answer 5

Product differentiation - unique feature which distinguish a product from its rivals. This may based on special characteristics or a distinct image which has been developed.

Question 6

Competitive pricing

Answer 6

Competitive pricing - takes account of prices charged for similar products competing in the same market. Prices will usually be the same or a little below that of the closest rival.