Market Positioning Flashcards
What is product orientated?
An inward approach to a new product development when key focus is on what products can be made and production process
What is a market orientated businesses?
an outward approach to a new product where focus is on consumers by adapting.
What are positives and negatives of being product orientated
+ 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
What are positives and negatives of being market orientated?
+ 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)
What is market segmentation?
when the market is split into sub groups of consumers with similar characteristics
What is market segmentation split into?
demographic
geographic
income
behavioural
What is a demographic segmentation?
identifies subgroups of the population based on their demographic profile or characteristics
What is geographic segmentation?
defines market categories based on where people live eg regions
What is income segmentation?
identifying subgroups of the market based on their levels of income and profession eg luxury goods
What is behavioural segmentation?
characteristics subgroups based on their behaviour patterns of the consumer rather than their characteristics
What are benefits of segmenting a market?
+ advertising can be targeted at specific segments, most profitable and least profitable areas can be found, and possibly avoided
What is market positioning?
how individual products or brands are seen in relation to their competitors by their consumers. This may stem from pricing,marketing or quality.
What is market mapping?
the use of a grid showing two factors of a markets such as price or consumer age.
Why would a business use market mapping?
it gives insight on whole markets and competition
What are positives and negatives of market mapping?
+ spot gaps, help business differentiate.
- hard to categorise all products, identify gaps means there isn’t a need,
What is adding value?
value of the finished good or service over and above the cost of achieving it.
What are 4 factors about production?
land labour capital enterprise
What are methods to add value?
manufacturing marketing branding technology customer service A USP
What are benefits of adding value?
+ charge higher prices, create a point of difference from competitors, protection from competitors stealing customers, focuses a business on its target market segment
What is a competitive advantage?
an advantage over competitors gained by offering consumers greater value.
- low prices
- greater benefits
- good services
What is cost leadership?
When the objective is to be the lowest cost producer in the industry producing in large batches (E.o.s) with low differentiation
What qualities of cost leadership?
high production levels high capacity utilisation economies of scale lean production capital intensive most effective distribution channels
What is differentiation focus?
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
What is differentiation leadership?
When a business selects one or more criteria used by buyers in a market and positioning the business according to meet criteria.
What is a method of differentiation leadership?
superior product quality
branding
industry wide distribution
consistent promotional support eg sponsorship
What is in the marketing mix?
product
place
price
promotion
What is marketing?
the process of meeting the needs and wants of customer
What is the marketing mix?
The combination of factors to help the business to take into account customer needs when selling a product
What is the design mix?
a way in which all aspects if a products design are considered.
What are the parts of design mix?
aesthetics
function
economic manufacture
What is the function?
way in which the product performs. Products need to work and be reliable
What is aesthetics?
degree of beauty or style as perceived by customers
What is economic manufacture?
Must be able to make profits and be viable
What are social trends?
the way the whole society acts and behaves
What social trends influence manufacture?
resource depletion
recycling and re-using
waste minimisation
ethical sourcing
What is resource depletion?
materials become scarce and costs increase
What is waste minimisation?
keep waste low and reduce quantity and toxicity
What is recycling and re-using?
- instead of dumping
- efficient resources
- fair trade
