1.1.3 - theme 1

Question 1

what is added value?

Answer 1

The increase in value that a business creates when producing a product/service. The difference between the price the customer pays and the total cost of inputs needed to create a product.

Question 2

What is competitive advantage?

Answer 2

A feature of a business and/or its products that enable it to compete effectively with rival producers/products.

Question 3

What is differentiation?

Answer 3

Using differentiation/USP to have an edge over the competition.

Question 4

What is market mapping?

Answer 4

A form of market positioning using a 2-dimensional diagram that plots products or services in a market using two key variables.

Question 5

What is market positioning?

Answer 5

An effort to influence consumer perception of a brand or product, relative to the perception of competing brands or products.

Question 6

What is product differentiation?

Answer 6

The act of distinguishing a product/service from competitors to make it more attractive to a particular target market.