Market positioning Flashcards
What is market positioning
the process a business goes through when launching a new product or service
What is market mapping
a tool for identifying the position of a product within a market
What is competitive advantage
factors that allow a company to produce goods or services better or more cheaply than its rivals
What is adding value
the process of adding value to the cost of inputs into and through the transformation process
What is price elasticity
measures the effect on quantity demanded of a change in price, with all other factors held constant.
e.g: a company which if they alter their prices someone will just shop elsewhere
What is price inelasticity
where a change in price leads to a less than proportional change in quantity demanded
e.g: bread or milk, if the price goes up people will still buy it anyway
What is unique selling point
What is a market map
- a two dimensional diagram (shaped like a + )
- only two criteria can be chosen
e.g: price and quality, age and income etc …
What are methods of adding value
- marketing / branding
- functions / features
- packaging
- customisation
- customer service
- convenience
- product differentiation
