Market Positioning

Question 1

market positioning

Answer 1

the place a product occupies in customers minds relative to competing products

Question 2

marketing map

Answer 2

illustrates the range of positions that a product can take in a market based on two dimensions

Question 3

dimensions examples

Answer 3

low price / high price
basic quality / high quality
healthy / unhealthy
simple / complex

Question 4

marketing map adv

Answer 4

-helps spots gaps in the market
-useful to analyse competitors

Question 5

marketing map dis

Answer 5

-just because there is a gap doesn’t mean there is a demand
- not a guarantee of success

Question 6

positioning and competitive advantage

Answer 6

-customers choose products based on value proposition

Question 7

possible positioning strategies

Answer 7

offer more for less, offer less for less, offer more for the same

Question 8

product differentiation

Answer 8

arises when customers perceive a distinct difference between your product and the alternative provided by competitors

Question 9

Purpose of product differentiation

Answer 9

• build a brand
• add more value
• strengthens customer loyalty
• strong differentiation allowes higher prices

Question 10

unique selling point

Answer 10

something that sets a product apart from its competitors in the eyes of customers

Question 11

requirements for effective product differentiation

Answer 11

• deliver things that are important to customer
• affordable by target audience
• not easily copied by competitors

Question 12

added value

Answer 12

difference between the price of the finished product/service and the cost of the input involved in making it

Question 13

ways to add value

Answer 13

• build a brand
• deliver excellent customer service
• add product features customers want

Question 14

benefits of adding value

Answer 14

• charge a higher price
• create a point of difference with competitors
• protection against competitors offering lower prices