Market Positioning 1.3 Flashcards
Market Positioning Def
Market positioning is how consumers perceive a product. It simplifies choices by grouping products based on factors like quality, status, and value.
Approaches businesses might use to position their products
Product Benefits: Emphasis on safety, quality, or value, e.g., in cars.
Unique Selling Point (USP): Unique feature setting the product apart, e.g., dandruff removal in shampoos.
Product Attributes: Specific qualities highlighted in marketing, e.g., M&Ms slogan.
Product Origin: Place-linked names (Lancashire cheese).
Product Classification: Names suggesting comparisons, e.g., “I Can’t Believe It’s Not Butter.”
Repositioning:
Adjusting products’ target market, features, or image due to changing markets, e.g., detergent repurposing after decline in cloth nappy demand.
Market Mapping purpose
To understand brand position based on consumer perception, e.g., if perceived as low-quality, sales impact will reflect this, even if the business perceives it as high-quality.
Market Mapping uses
Determine target market attributes.
Determine acceptable price and necessary promotion.
Market Mapping limitations
Limited to two attributes.
More brand-specific; corporate brands might not benefit as much.
Requires costly primary market research.
Intuitive maps lack data precision and may reflect management bias.
Competitive Advantage def
Unique features giving a product an edge, making it desirable to consumers.
Strategies:
Competitive Advantage- strategies
Product Design: Unique aesthetic or ergonomic appeal.
Product Quality: High quality allows premium pricing, e.g., Savile Row suits.
Promotion: Persuasive advertising to enhance consumer perception.
Customer Service: High service quality enhances customer satisfaction, e.g., Enterprise car rentals.
Delivery Speed: Fast delivery as a key selling point.
Economies of Scale: Lower production costs enable competitive pricing.
Flexibility: Customisation options increase appeal.
Ethical Stance: Ethically sourced products attract conscious consumers.
Focused Segments: Target niche segments for tailored competitive edge.
Product Differentiation purpose
To stand out in competitive markets by making products distinct through physical or perceived uniqueness.
Product Differentiation advantages (5)
Flexible Pricing: Allows premium pricing, especially for perceived differences.
Market Recognition: Unique packaging or features catch consumer attention.
Range Extension: Serve multiple market segments, e.g., different cruise options.
Brand Development: Sustained differentiation builds strong brands, e.g., Coca-Cola.
Competitive Edge: Perceived or real differences attract new customers, increasing market share and economies of scale.
Adding Value
Enhancing product features beyond the standard expectations.
Adding Value— methods (6)
Bundling: Package benefits, e.g., inclusive holiday deals.
Customer Service: Knowledgeable and attentive staff improve experience.
Response Speed: Fast service reduces wait times, e.g., first-class airline perks.
Packaging: Attractive wrapping adds perceived value.
Frequent Buyer Offers: Loyalty programs for repeat purchases.
Customisation: Tailored options make products feel unique.
Adding Value- benefits (3)
Enables premium pricing and creates brand loyalty.
Differentiates products from competitors, attracting consumers.
Helps the business focus closely on target market segments.
