positioning strategies

Question 1

what does strategic positioning mean?

Answer 1

• strategic positioning means choosing how to compete with the other businesses in the market.

Question 2

how does a businesses’s positioning strategy apart of the marketing strategy?a business’s positioning strategy is part of the marketing

Answer 2

a business’s positioning strategy is part of the marketing strategy - the choice influences the general direction a business develops in and affects all areas of the business

Question 3

wha things effect what positioning strategy is chosen?

Answer 3

• the positioning strategy chosen will be affected by a number of things
• the product itself
• state of the economy
• company’s image and resources
• the business’s mission

Question 4

what is a business’s competitive advantage often gained through?

Answer 4

competitive advantages are often gained through a firm’s core competences

Question 5

what are the 2 types of competitive advantages porter identified?

Answer 5

• cost advantage
• differentiation advantage

Question 6

what is the cost advantage competitive advantage?

Answer 6

• a business can get a competitive advantage by selling a similar product at a lower cost than its rivals
• low-cost airlines like easy jet and ryanair use a ‘no frills’ strategy to keep their costs at a minimum - they use cheaper airports like luton and cut out travel agents’ fees by using online booking

Question 7

what is the differentiation advantage competitive advantage?

Answer 7

• selling better products at the same or a slightly higher price creates a competitive advantage
• offering a product that consumers see as different from competitors’ products can make consumers think it’s better.
• this is called product differentiation

Question 8

how can competitive advantages build brand loyalty?

Answer 8

• customers associated the particular advantage with the brand, which makes them more likely to choose that brand in the future

Question 9

why is having a competitive advantage great for a company?

Answer 9

• they’ll either sell a high volume of products at a low price and make a large profit or they’ll be able to sell enough products at a high price to make a large profit

Question 10

how is holding onto your competitive advantage tricky?

Answer 10

• maintaining low cost production might be difficult. competitiors can lower their prices or copy your unique features
• consumer tastes can change and a changing economy can alter the demand for luxury or value products.
• businesses need to continuously monitor both internal and external factors in order to keep their advantage