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.
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.
3
Q
What is competitive advantage ?
A
Anything that gives a business an edge over its competitors.
4
Q
Give two examples of a competitive advantage.
A
- Cost advantage.
- Differentiation advantage.
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.
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.