-market positioning-

Question 1

What is market positioning?

Answer 1

The place a product occupies in customer minds relative to competing products.

Question 2

What is a market positioning map?

Answer 2

Illustrates the range of positions that a product can take within a market based on two dimensions that are important to customers.
For example:
low price - high price
basic quality - high quality
low vol - high vol
necessity - luxury

Question 3

Adv of positioning maps:

Answer 3

Helps to spot gaps in market.
Useful for analysing competitors.
Encourages use of market research.

Question 4

Disadv of positioning maps:

Answer 4

Just because there is a gap, doesn’t mean there is demand.
Not a guarantee of success.
Is the market research reliable?

Question 5

What is product differentiation?

Answer 5

Where a product has a value proposition that is sustainable different from the competition.

Question 6

What is adding value?

Answer 6

The process go adding value to the cost of inputs into and via the transformation process.
E.g a restaurant using people, ingredients and buildings so that value is added during cooking and through customer service.