Market Positinioning Flashcards
Product / market orientated
PRODUCT: the business focuses on the production process and the product itself.
MARKET: Business focuses on the needs and wants of customers when developing the product
Market positioning
concerned with the perceptions consumers have about products.
Customers categorise products (quality, status, value)
How businesses position products
• The benefits offered by the product. Ex. In cars; safety, quality, style.
• The unique selling point. This is the key aspect of the product or service that sets it apart from its competitors.
•The characteristics/qualities of the product. Ex. M&M’s melts in your mouth , emphasizes quality.
•The origin of the product
Market mapping
typically a two- dimensional diagram that shows two of the qualities or characteristics of a brand and those of rival brands in the market.
Adv and disadv market mapping
-Provides a visual representation of information.
-Clear and easy to interpret when the marketer needs to make a quick decision.
-only two characteristics can be analysed
-there is a difference between customers perception of brands benefits and actual benefits.
Markets segments
parts of a whole market where a particular customer group has similar characteristics.
Geographic segmentation
Different customer groups are likely to have different needs depending on where they live. For example, groups living in hot climates, such as Australia or South Africa, wil have different needs to groups living in mild climates such as Denmark.
Demographic segmentation:
-AGE: Kids, teenagers and old people have different needs.
-GENDER: Men & women have different needs
-INCOME: People can afford different products.
-ETHNICITY: Chinese people are spend more on leather.
-RELIGION: Different tastes. Ex. Muslims pork
Psychographic segmentation
This groups customers according to their attitudes, opinions and lifestyles.
• Sports products may be aimed at those who are interested ni ‘extreme’ sports such as snowboarding.
• People’s attitudes: some people only want to buy ethical products.
• Clothes may be geared at those who are interested in ‘retro’ fashions from earlier decades.
Behavioural segmentation
Behavioural segmentation attempts to segment markets according to how consumers relate to a product.
-Usage rate: This is when consumers are categorised
according to the quantity and frequency of their purchases. One example of this is British Airways, which established an ‘Executive Club’ to encourage and develop the custom of regular business travellers.
-Loyalty: Consumers can be categorised according to their product loyalty.
-Time and date of consumption: Consumers often consume particular products at particular times and dates. many restaurants seek to encourage different groups of consumers. For example, they often have deals for students or lunchtime deals for local offices.
Competitive advantage
an advantage that enables a
business to perform better than its rivals in the market.
How a business can develop competitive advantage
-Product design: If a firm can develop a product that has superior design, this might appeal to a significant proportion of a market. Ex, IPhones are really easy to use.
-Product quality: Offering high-quality products is a common way of gaining a competitive edge ni a market. Can charge high price.
-Promotion: Effective promotion using creative
advertising, for example, might give a firm a competitive edge.
-Customer service: Some businesses pay less attention to the product itself and rely on high-quality customer service to gain a competitive edge.
-Delivery times: Some customers demand fast delivery of products.
Adding value to products are services
In highly competitive markets a business may try to
add value to its product. This means that the business provides ‘extra’ features for the customer that go beyond their standard expectations.
How can business add value
• Bundling. A business might be able to add value by putting together a ‘package’ of benefits or services that make up the whole product. For example, in the holiday industry tour operators may offer flights, accommodation, transters, insurance, childcare facilities and excursions all for one price.
• Customer service. Staff that come into direct
contact with customers can play a very big role in adding value. Well-presented, friendly, thoughtful
and professional staff create a good image and make customers feel at ease.
• Speed of response to customers.
• Customisation.
