Theme 1.1.3: Market Positioning

Question 1

Market Positioning

Answer 1

Examines customers views on individual products or brands, in relation to each other. This may involve variations in price or quality, style or technical features. Market research can reveal customer perceptions of a range of competing products

Question 2

Positives of Market Mapping

Answer 2

. Helps a business design a product that fits the preference of a target market
. Any gap identified can be filled with little or no competition
. Helps a business differentiate

Question 3

Negatives of Market Mapping

Answer 3

. Just because there is a gap dose not mean there is a need to fill it
. Some products or services are hard to categorise

Question 4

Product Differentiation

Answer 4

Occurs when each business creates a distinctive product, this may involve giving it unique features in order to attract customers, or can be changing perceptions of the product e.g Guinness changed their market from older men to the younger drinkers

Question 5

Market Map

Answer 5

A tool that plots brands in the market according to how they meet customers needs. It illustrates the way a business may position its individual products in a wider market

Question 6

What two categories are markets usually mapped on

Answer 6

. Price

. Quality

Question 7

Competitive Advantage

Answer 7

Having an edge over rival products, it may be based on low costs and attractive prices, an innovative design feature, or a good reputation.

Question 8

What usually plays a big part in having a competitive advantage?

Answer 8

Product Differentiation

Question 9

How can a business gain a competitive advantage?

Answer 9

. Lower Price
. Improve Quality
. Improve Efficiency
. Invest in new technology
. Improve relationships with employees and suppliers
. Improve the actual product or the image

Question 10

Adding Value

Answer 10

When a business increases the worth customers place on the product by improving it or creating a fresh image. This allows them to charge more. The difference between the selling price and the costs involved in production or delivery of a service

Question 11

What is something Adding Value or having a Competitive Advantage likely to do?

Answer 11

Increase sales

Question 12

Unique Selling Point

Answer 12

Features that make the product stand out and look unique from other products. This can be an example of adding value

Question 13

Repositioning

Answer 13

Establishing a product or business in a new position of the market map that they previously did not operate in e.g going from high quality high price to medium quality low price