Strategic Positioning Flashcards
Porter's Theory, Bowman's Theory, Marketing Strategies
Niche Market
A smaller segment of a larger market.
Mass Market
Products aimed at a broad market segment.
Competitive Advantage
Having a sustained advantage over competition. e.g improving quality, investing in R & D
Positioning
How to compete effectively in the target market.
Cost Leadership
Being the lowest cost producer in a market.
How to achieve cost leadership?
The use of economies of scale to reach low cost per unit.
Cost Focus
Attracting potential customers based on lower price.
Differentiation
A business distinguishing a product or service from similar offerings in the market.
Differentiation Focus
A business distinguishing itself from competitors through the quality of its products or services.
How to achieve differentiation?
By using branding, Specific channels, patenting
Porters Generic Strategies
Refers to competitive advantage, certain generic strategies are pursued.
Ansoff’s Matrix
Shows the strategic direction of a business.
Market Penetration
A growth strategy where the business focuses on selling existing products into existing markets.
Market Development
A growth strategy that involves selling your existing products or services to a new group of customers.
Product Development
The processes involved in bringing a new product to market.
Diversification
A growth strategy that involves entering into a new market or industry.
Patent
An individual creator or company’s right to exclusively produce, market, and sell an item for a set period of time
Marketing Channels
Monopoly
A single company supplying a good or service, a lack of competition within the market, and no similar substitutes for the product being sold.
Price Skimming
A strategy where a business starts of by setting the highest price customers are willing to pay.
Price Penetration
Offering a low price initially to attract customers to a new product or service.
