Market positioning

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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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