The competition

• Market mapping??

  A way of measuring where existing products sit on a two-factor grid.
• Benefits of Market mapping NO1

  spot gaps in the market
• Benefits of Market mapping NO2

  Can focus on features to make their products different to competitors
• Benefits of Market mapping NO3

  Can be used to analyse consumer buying habits and preferences
• Drawbacks of market mapping NO1

  Deciding the most important two factors is difficult.
• Drawbacks of market mapping NO2

  Large investment of time and money in market research to provide a reliable market map.
• Drawbacks of market mapping NO3

  Map is only on on two factors not being fully representative
• Drawbacks of market mapping NO4

  Can be bias leading to wrong and expensive business decisions.
• Competitive advantage??

  Feature that allows a business to perform more successfully in a market compared to others.
• Product differentiation??

  unique feature that makes a product stand out to its competing products .
• Benefit of product differentiation?

  Premium prices
• Added value??

  difference between cost of materials imputed and the selling price of a product
• The more value a product to a customer the higher the price that can be charged.
• Benefit of Adding Value NO1 


  Charge a higher price- increase profit
• Benefit of Adding Value NO2

  Protection against competitors offering lower prices and differentiate.
• Benefit of Adding Value NO3

  Customer loyalty
• Mass market??

  Large-scale production and distribution of goods to a wide audience.
• Niche market??

  A specialized segment of the market.
• stable markets??

  market where there are no major fluctuations in supply and demand so prices charged are roughly the same throughout.
• Dynamic markets??

  Fluctuating demand and supply.
• Changes in demand can be cause by..

  • social trends
  • competitive enciournment
  • changes in technology
  • Consumer tastes
• Benefits of Dynamic markets NO1

  Offers greater convenience to consumer
• Benefit of Dynamic market NO2

  Offers opportunities to businesses

  -lower overhead costs

  -access to wider market