Market Positioning

Question 1

What is product orientated?

Answer 1

An inward approach to a new product development when key focus is on what products can be made and production process

Question 2

What is a market orientated businesses?

Answer 2

an outward approach to a new product where focus is on consumers by adapting.

Question 3

What are positives and negatives of being product orientated

Answer 3

+ less likely to have to do market research, spend money on R&D instead, more innovative, harder for competition to exist
- lead to unsuccessful products

Question 4

What are positives and negatives of being market orientated?

Answer 4

+ more likely to produce a product/service that a customer wants, gives a business a competitive advantage, brand loyalty is more likely to be increased, word of mouth marketing increases, may be easier charge higher prices
- can be time consuming, costly, changing consumer trends (dynamic markets)

Question 5

What is market segmentation?

Answer 5

when the market is split into sub groups of consumers with similar characteristics

Question 6

What is market segmentation split into?

Answer 6

demographic
geographic
income
behavioural

Question 7

What is a demographic segmentation?

Answer 7

identifies subgroups of the population based on their demographic profile or characteristics

Question 8

What is geographic segmentation?

Answer 8

defines market categories based on where people live eg regions

Question 9

What is income segmentation?

Answer 9

identifying subgroups of the market based on their levels of income and profession eg luxury goods

Question 10

What is behavioural segmentation?

Answer 10

characteristics subgroups based on their behaviour patterns of the consumer rather than their characteristics

Question 11

What are benefits of segmenting a market?

Answer 11

+ advertising can be targeted at specific segments, most profitable and least profitable areas can be found, and possibly avoided

Question 12

What is market positioning?

Answer 12

how individual products or brands are seen in relation to their competitors by their consumers. This may stem from pricing,marketing or quality.

Question 13

What is market mapping?

Answer 13

the use of a grid showing two factors of a markets such as price or consumer age.

Question 14

Why would a business use market mapping?

Answer 14

it gives insight on whole markets and competition

Question 15

What are positives and negatives of market mapping?

Answer 15

+ spot gaps, help business differentiate.

- hard to categorise all products, identify gaps means there isn’t a need,

Question 16

What is adding value?

Answer 16

value of the finished good or service over and above the cost of achieving it.

Question 17

What are 4 factors about production?

Answer 17

land labour capital enterprise

Question 18

What are methods to add value?

Answer 18

manufacturing
marketing
branding
technology
customer service
A USP

Question 19

What are benefits of adding value?

Answer 19

+ charge higher prices, create a point of difference from competitors, protection from competitors stealing customers, focuses a business on its target market segment

Question 20

What is a competitive advantage?

Answer 20

an advantage over competitors gained by offering consumers greater value.

• low prices
• greater benefits
• good services

Question 21

What is cost leadership?

Answer 21

When the objective is to be the lowest cost producer in the industry producing in large batches (E.o.s) with low differentiation

Question 22

What qualities of cost leadership?

Answer 22

high production levels
high capacity utilisation
economies of scale
lean production
capital intensive
most effective distribution channels

Question 23

What is differentiation focus?

Answer 23

When the objective is the differentiate just one or a small number of target market segments which requires customers to want varied production in niches

Question 24

What is differentiation leadership?

Answer 24

When a business selects one or more criteria used by buyers in a market and positioning the business according to meet criteria.

Question 25

What is a method of differentiation leadership?

Answer 25

superior product quality
branding
industry wide distribution
consistent promotional support eg sponsorship

Question 26

What is in the marketing mix?

Answer 26

product
place
price
promotion

Question 27

What is marketing?

Answer 27

the process of meeting the needs and wants of customer

Question 28

What is the marketing mix?

Answer 28

The combination of factors to help the business to take into account customer needs when selling a product

Question 29

What is the design mix?

Answer 29

a way in which all aspects if a products design are considered.

Question 30

What are the parts of design mix?

Answer 30

aesthetics
function
economic manufacture

Question 31

What is the function?

Answer 31

way in which the product performs. Products need to work and be reliable

Question 32

What is aesthetics?

Answer 32

degree of beauty or style as perceived by customers

Question 33

What is economic manufacture?

Answer 33

Must be able to make profits and be viable

Question 34

What are social trends?

Answer 34

the way the whole society acts and behaves

Question 35

What social trends influence manufacture?

Answer 35

resource depletion
recycling and re-using
waste minimisation
ethical sourcing

Question 36

What is resource depletion?

Answer 36

materials become scarce and costs increase

Question 37

What is waste minimisation?

Answer 37

keep waste low and reduce quantity and toxicity

Question 38

What is recycling and re-using?

Answer 38

• instead of dumping
• efficient resources
• fair trade