market mapping

Question 1

define market mapping

Answer 1

the technique used by businesses to understand where competitors products stand in the market based on 2 characteristic

Question 2

advantages of market mapping

Answer 2

1. helps decide whether to set up in a market (gap or not)
2. decide where to position new products
3. gain a better understanding of competition and understand customer perception

Question 3

disadvantages of market mapping

Answer 3

1. people might have different perceptions of the quality of a product/service = subjective
2. new entrants will change the market
3. just because there’s a gap doesn’t mean there’s demand

Question 4

define differentiation

Answer 4

is the process of making a product different from a competitor’s products

• linked to usp

Question 5

define competitive advantage and examples

Answer 5

a sustainable way the business can keep its product services ahead of the competition in the long term

e.g. price, innovation, reliability, advertising, brand image

Question 6

purpose of product differentiation

Answer 6

• positioning vs competition
• protect and build a brand
• add more value
• higher price