Marketing Positioning Flashcards
Define market segment
small part of the market that has its own characteristics, needs and wants and buying preferences
In which ways can the business segment their market?
- Demographically
- Geographically
- By Income
- Physchographically
- By behaviour
What are the benefits to market segmentation?
- More targeted promotion
- Businesses can better meet customer needs
- Reduced costs due to successful marketing
- Differentiated products mean premium prices can be charged
Define Market mapping
it allows a business to identify their position in the market in relation to competitors
What are the advantages of market mapping?
- Helps firms to identify gaps in the market
- Identifies opportunities to re-position existing products
- Gives businesses a better insight in how their product is viewed in relation to competitiors
What are the disadvantages of market mapping?
- Only measured against two variables
- Although there may be a gap, there isn’t necessarily demand
- the market research the map is based on may be inaccurate or bias
Define product differentiation
A unique feature that helps to distinguish a product from competitors. This can be done through having a USP
Define Added Value
Difference between the price of the finished product and costs of making it
What is price elasticity
a measurement of the extent to which a products demand changes when its price is changed
