Market Positioning (1.1.3) Flashcards
(14 cards)
What is Market positioning?
Refers to the process a business goes through when launching a new product or service. Business decides where they want to position the product in the market with regard to price, quality, branding and customer perception
What is Market Mapping?
A map that helps a business Spot a gap in the market. Helps to understand your competition, encourages you to do research and encourages you to develop ways of creating a competitive advantage.
It means that there less competition and doesn’t guarantee success, can increase costs of a business as have to take out market research.
What are the two criteria’s do you use for market mapping? (parts on the axis)
- Price and Quality
- Age and Income
What is it called when there are no spaces left on the market map?
It means the market is saturated and there are no opportunities. Competition is likely to be high and profits low
How is market mapping useful?
-Market gaps can be identified which can help businesses come up with new ideas
-Comparisons can be made between businesses products and rivals products
-Simple to construct and offer visual representation
What are the limitations to market mapping?
-Gap in the market may exist because not profitable
-May require primary research which can be expensive
-Only two criteria can be used
-Markets often dynamic and market map only provides insight at specific point in time
What is a competitive advantage?
Refers to the features of a business and its products being perceived as superior to its rivals by customers. How its different from its competitors
What are sources of competitive advantage?
-Delivery times
-Customer service
-Price
-Reliability
-Brand image and Reputation
-Ethical stance
-Design
-Quality
What are ways a firm can gain a competitive advantage?
-Innovation
-Branding
-Strong relationships with stakeholders
-Adding value
-Differentiation
-Market segmentation
-Price leadership
What is Product Differentiation?
The process of making a product unique or distinctive of a businesses to distinguish from those products of its competitors.
What can strong product differentiation help the firm develop?
Competitive advantage
How does Product Differentiation set you apart from competitors? (5 ways)/ What does successful product differentiation help a business to do?
-Its hard to copy
-Build a connection with customers
-Strengthen Brand Loyalty
-Adding value increases price
-Increased Profit Margins
What is adding value?
Adding value means making something more useful, better, or worth more to someone. It’s when you take a product, service, or idea and improve it in a way that makes people willing to pay more for it or appreciate it more.
What are methods of adding value?
-Marketing + Branding
-Functions + Features
-Packaging
-Customisation
-Customer service
-Convenience
-Design
-Product differentiation
