Market Positioning Flashcards
what is market positioning
the process that a business uses when launching a new product
how does market positioning work
the business decides where they want to position their product in the market regarding price, quality, branding, and customer perception
what is market positioning used for
identifying the optimal position for a product in a market
what is a market map
a 2d diagram that shows the positives or characteristics of a product in comparison to similar products
what 2 elements are used to focus on choosing which customers to serve
- market segmentation
- target market
what 2 elements are used to focus on choosing how to serve customers
- product differentiation
- marketing positioning
what is value proposition
deciding how to compete your products in the chosen sections
what is market position defined by
customers opinions
advantages of market positioning
- market gaps can be identified
- you can easily compare products
- easy to make
- clear/easy illustration
disadvantages of market positioning
- gap may exist because it’s unprofitable
- to map the market primary research may be needed
- only 2 criteria are needed which may be too simple
- markets are dynamic and companies may not be able to keep up
why is providing a superior value proposition than the competition a likely source of competitive advantage
customers choose products based on their opinions on the product and competitors
what are 8 sources of competitive advantage
- delivery times
- customer service
- price
- reliability
- brand reputation
- ethical stance
- design
- quality
what does effective differentiation allow business to do?
- help them compete effectively
- build your brand
- add more value
what is a USP
something that sets a product apart from its competitors
8 methods of adding value
- marketing and branding
- functions and features
- packaging
- customisation
- customer service
- convenience
- design
- product differentiation
