Market Positioning

• Market positioning is where a product is placed in the market relative to its competitors.
• Market Mapping is the process of finding the variables which differentiate brands in a market and then plotting them on a map to identify a gap in the market.
• Competitive Advantage is a feature of a business that allows it to perform more successfully than others in the market.
• Competitive Advantage can be done by:

  • Same quality of products at a lower price.
  • Superior products achieved through differentiation.
• The theory of competitive advantage is based off Porters Generic Strategies.
• three parts of porters generic strategies are:

  1. Cost Leader.
  2. Strategic Drift.
  3. High Differentiated.
• Cost Leaders charge lower prices as they have lower costs than their competitors.
• High Differentiated can charge premium prices.
• Strategic Drift is stuck in the middle.
• A business can develop a competitive advantage through:

  • Price Leadership.
  • Added Value.
  • Innovation.
  • Reliability.
  • Quality.
  • Advertising.
  • Convenience.
  • Branding.
  • Customer Service.
• Price Leadership is the setting of prices in a market by a dominant company which is followed by others in the same market.
• Added Value is the difference between the cost of making something and the price of selling it.
• Innovation is the process of getting a product from research to markets.
• Reliability means that a product will keep doing what it was designed to do without letting down the customer.
• Quality could mean the customer service attached to the product or company or how good the product is.
• Advertising is making awareness of their company.
• Convenience is offering stores in places that are easy to get to and sells convenient procucts.
• Customer service is dealing with problems that customers have over the company.
• A business can differentiate their products by:

  • Reputation.
  • Customer Service.
  • Value.
  • Product Features.
• Business Differentiate because:

  • Customer loyalty.
  • Brand loyalty.
  • Increased profit margins.
  • price competition.
• A business can add value by:

  • Design- developing new technology/design features to make their product unique.
  • Production- achieving quality and efficiency.
  • Marketing- Creates an image that makes the product more desirable.
• Adding Value is the amount by which the value of a product/service increased at each stage of its production.
• Benefits of adding value include:

  • more value means higher prices charged meaning higher profit margins.
  • Protection against competitors offering lower prices.
  • Customer Loyalty.