Market Positioning

• market positioning: the process a business goes through when launching a new product or service - the business decides where they want to position the product in the market with regard to price, quality, branding, and customer perception
• market mapping: a tool for identifying the position of a product within a market
• if a market map has no spaces left:

  • the market is saturated
  • competition is high
  • profitability is low
• what is one strength and one weakness of market mapping?

  strength: comparisons can be made with rivals

  weakness: a gap may only exist because it is not profitable to fill
• competitive advantage: the features of a business and its produtcs that are perceived as superior to its rivals by customers
• product differentiation: a business attempts to distinguish its products from those of competitors
• adding value: the difference between the price that is charged to the customer and the cost of inputs required to create the product