1.1.3 Market mapping and competitive advantage

• What are some sources of competitive advantage?


  Quality, reliability, delivery times, mobility, design, customer service, brand image, price, ethical stance
• How does customer service contribute to competitive advantage?


  It enhances customer satisfaction and loyalty, influencing repeat purchases
• What are methods of added value?


  Marketing and branding, functions and features, packaging, customization, customer service, convenience, design, product differentiation
• What is market positioning?


  • Ability to influence consumer perception of a brand or product
  • Establishes image or identity relative to competitors
  • Example: A chocolate bar with a unique service
• What are the key components of positioning strategies?


  Price, quality, product benefits, competitors
• What are the steps to create an efficient market positioning?


  1. Compare company uniqueness
  2. Identify current market position
  3. Develop a strategy
• What is market repositioning?


  It is when a company changes its existing brand in the marketplace
• Why do customers often choose products based on their value?


  Because they assess the benefits relative to the price
• What is a useful source of competitive advantage in positioning?


  Providing a superior value proposition if it can be sustained
• What is market mapping?


  • Illustrates the range of positions a product can take in a market
  • Based on two dimensions important to customers
  • Common dimensions: price, quality, healthiness, luxury
• What are the advantages of market mapping?


  Helps spot gaps in the market, useful for analyzing competitors, encourages market research
• What are the disadvantages of market mapping?


  Not a guarantee of success, reliability of market research, gaps may not indicate demand, too simple and expensive, only two criteria
• What are some sources of competitive advantage?


  Reliability, customer service, brand image, price, and ethical stance
• How does customer service contribute to competitive advantage?


  It enhances customer satisfaction and loyalty, leading to repeat business
• What is product differentiation?


  It is the process of distinguishing a product from others in the market
• What are the functions and features of packaging?


  • Protection of the product
  • Information provision
  • Convenience for consumers
  • Aesthetic appeal
• What does market positioning refer to?


  It refers to the ability to influence consumer perception regarding a brand or product relative to competitors
• What is the purpose of positioning strategies?


  To establish the image or identity of a business in the marketplace
• What are the steps to create an efficient market positioning?


  1. Compare company uniqueness
  2. Identify current market position
  3. Develop a strategy
• What does market repositioning involve?


  It involves changing an existing brand's position in the marketplace
• What influences customer product choices?

  Customers choose products based on their value proposition and comparison to other products
• What is a likely source of competitive advantage?


  Providing a superior value proposition that can be sustained
• What does Market Mapping illustrate in a market?

  It illustrates the range of positions a product can take based on two dimensions important to customers.
• What are common dimensions used in Market Mapping?

  Price, quality, and healthiness.
• What are the advantages of Market Mapping?

  • Helps spot gaps in the market.
  • Useful for understanding competitors.
  • Encourages the use of market research.
• What are the disadvantages of Market Mapping?

  • Not a guarantee of success.
  • Reliability of market research can be questionable.
  • A gap does not necessarily mean there is demand.
  • Can be simple and expensive.
• What is a limitation of Market Mapping regarding market research?


  It raises questions about how reliable the market research is.
• Why might a gap in the market not indicate demand?


  Because just because there's a gap doesn't mean that there is demand.
• What is one of the criteria mentioned in the study material regarding Market Mapping?

  Only two criteria are considered in Market Mapping.