market mapping 2 Flashcards
1
Q
what is a USP?
A
USP = something that sets a product apart from its competitors in the eyes of customers
2
Q
benefits of having a USP
A
- competitive advantage
- helps make demand more price inelastic
3
Q
requirements for effective product differentiation
A
- distinctive compared to competitors
- communicated and visible to customers
- not easily copied by competitors
- delivers things that are important to customers
4
Q
define adding value
A
the difference between the price of the finished product/service and the cost of the inputs involved in making it
5
Q
ways to add value
A
- build brand
- excellent customer service
- operate efficiently
- add product features and benefits that customers want
5
Q
ways to add value
A
- build brand
- excellent customer service
- operate efficiently
- add product features and benefits that customers want
6
Q
benefits of adding value
A
- charge a higher price
- protection against competitors offering lower prices
- create a point of difference with competitors
