Unit 1.13

Question 1

What is market positioning ?

Answer 1

The process a business goes through when launching a new product or service

Question 2

What is market mapping?

Answer 2

-A two dimensional diagram that shows the characteristics of a product in comparison to its rivals products
-only two criteria’s can be chosen

Question 3

What are the market map analysis?

Answer 3

If there is no space left in the market map:
-the market is saturated
-there is no opportunities to exploit a market niche
-competition is likely to be high and profits low

Question 4

what are the usefulness of market mapping?

Answer 4

1) Market gaps can be identified which can allow businesses to come up with ideas for a new product

2) Comparisons can be made between a business’ products and its rivals

Question 5

What are the limitations of market mapping?

Answer 5

1) a gap in the market may exist but it is not profitable to fill

2) Mapping a market may require primary research which can be expensive

3) Markets are often dynamic and market map only provides information at a specific point in time

4) Only two criteria can be chosen which may prove to not be helpful

Question 6

What is a competitive advantage?

Answer 6

The distinctive and defensible features a business has that makes it better than its rivals

Question 7

How can businesses gain a competitive advantage?

Answer 7

I1) Increasing innovation and reputation (branding)

2) Building strong relationships with stakeholders

3) Adding value to their products

4) Adding Differentiation

5) Doing Market segmentation

Question 8

What is product differentiation?

Answer 8

An Attempt by a business to distinguish its products from competitors

Question 9

What is the advantage of product differentiation?

Answer 9

1) Helps the business better their competitive advantage

2) Creates a USP which businesses can use in their marketing

3) It can allow for a business to increase the price its charges

4) It can build customer loyalty

5) It can increase demand for a businesses products

Question 10

what is meant by adding value?

Answer 10

Increasing the worth or desirability of a product

Question 11

What are some methods of adding value?

Answer 11

1) Marketing and Branding: Building a identifiable brand and customer loyalty

2) Functions and Features: adding unique functions and features

3) Customer service: having a good reputation for customer service

4) Packaging: Having superior and high quality packaging