An analysis of how consumers define or perceive a product compared to other products in a market
Position/perception map
A visual representation of how consumers perceive a product in relation to other competing products
Constructing a perception/position map
1. Draw an x and y axis
2. Label each axis with customer perceptions (e.g. price, quality)
3. Place the product in the category that fits it best
Perception/position map helps a firm establish who are its close competitors, identify gaps in the market, present research data, and help with identifying consumer needs and wants
Unique Selling Point/Proposition (USP)
A product's feature that differentiates it from other competing products in the market
A USP helps establish competitive advantage, leads to customer loyalty/repeat purchases, increases revenue as customers are willing to pay higher prices, and makes it easier to market a product
One of the main reasons for creating a USP is to stand out from competitors
Other ways a business can differentiate from competitors
Differentiation Strategies
Marketing planning helps a firm establish who are its close competitors, identify gaps in the market, present research data, and help with identifying consumer needs and wants
Segmentation, targeting and positioning are part of marketing planning
Niche market and mass market are part of marketing planning
The importance of having a unique selling point/proposition (USP) is part of marketing planning
How an organisation can differentiate themselves and their products from competitors is part of marketing planning
