Theme 1 - 1.3 Market positioning Flashcards

1
Q

What is market mapping ?

A

A diagram of products in the market to identify a gap in the market.

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2
Q

What is added value ?

A

Added value is the difference between the price that is charged to the customer and the cost of inputs required to make the product.

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3
Q

What is competitive advantage ?

A

Anything that gives a business an edge over its competitors.

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4
Q

Give two examples of a competitive advantage.

A
  • Cost advantage.
  • Differentiation advantage.
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5
Q

What are the ways a business can add value ?

A
  • Marketing - creates a strong brand image that makes the product more desirable.
  • Production - achieving high quality goods adds value (will ensure higher prices can be charges).
  • Design - developing new technology adds value as it differentiates product.
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6
Q

What are some benefits to adding value to a product ?

A
  • Businesses can charge a higher prices.
  • Protects businesses against competition charging low prices.
  • Develops customer loyalty.
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