Market positioning

Question 1

What is market positioning?

Answer 1

Where a brand is placed in the minds of consumers. A business can improve its market position through product differentiation ands adding value.

Question 2

What are the advantages of a market positioning map?

Answer 2

• Helps spot gaps in the market.
• useful for analysing competitors.
• Encourages the use of market research.

Question 3

What are the disadvantages of a market positioning map?

Answer 3

• A gap in the market doesn’t mean there’s a demand.
• Not a guarantee of success
• Market research may not be reliable.

Question 4

How does market positioning link to competitive advantage?

Answer 4

Customers will choose products based on how they perceive the brand. By offering a superior value position this will have a business to dominate over competitors.

Question 5

What is product differentiation?

Answer 5

Where a product is different from the competition and consumers may be willing to pay a premium price.