1.1.3 market positioning Flashcards
1
Q
market map
A
diagrammatic techinique that enables businesses to display the perceptions of customers
(can be used to analyse customers buying habits + preferences)
2
Q
product differentation
A
when customers percieve a distinct difference between the product + the alternatives provided by competitors
3
Q
purpose of product differentation (3)
A
- positioning v competition - competitive advantage
- protect + build - increase customer loyalty, intangible value
- add value - increase profit margins
4
Q
market segments
A
helps to identify different types of consumers with different needs/wants
5
Q
added value
A
the difference between the cost of the product and its selling price
6
Q
how can value be added to a product? (5)
A
- packaging
- advertising
- flavouring
- celeb endorsement
- branding
7
Q
what does usp stand for?
A
Unique Selling Point
8
Q
what does a usp do? (4)
A
- sets a product away from its competitors
- source of competitive advantage
- helps make demand more price inelastic
- leads to increase in profits
