Market positioning
- Created by: alexialexi
- Created on: 28-12-20 11:39
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- Market Positioning
- Def: the view consumers have about the quality, value for money and image of a product in relation to those of competitors
- Approaches that a business might use to position its products
- the benefits offered by the product- safety, quality, value for money
- the unique selling point (USP)
- the attributes of the product
- the origin of the product- name of product may be derived from where it comes from
- the classification of the product
- Market mapping
- displays the information obtained from market research
- helps businesses see where their brand is positioned in the market- helps understand how customers see the brand compared to competitors
- Limitations
- two dimensional- only 2 product attributes can be analysed on the same map
- more relevant for individual brands, not for corporate brand image
- requires primary market research- expensive
- customers' perception of brand's benefits and the actual ones differ
- questionable how valuable they are- they just give the appearance of credibility
- Repositioning- hard decisions on how market is shifting and competitors' reactions
- with insufficient information
- positioning is hard to measure- customer perception of a product may not have been tested using quantitative techniques
- Competitive advantage
- an advantage that enables a business to perform better than rivals
- product design, product quality, promotion, customer service, delivery times, economies of scale, flexibility, ethical stance, focus on a particular market segment
- Purpose of product differentiation
- an attempt by a business to distinguish its product from rivals
- flexible pricing, recognition, extend product range, brand development, overcome competition
- Adding value to products and services
- extra features that may be offered by a business when selling a product to help exceed customer expectations
- bundliing (package of benefits or services), customer service, speed of response to customers, packaging, frequent buyer offers, customisation
- benefits: charge higer prices, differentiate products anf gain a competitive edge, , protect from competitors charging lower prices, focus more closely on the target marketand meet customers' needs
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