Positioning the business

To make your business more successful, you need to identify a potential market, by using market research. 

Turning the idea into reality will require information found to influence strategy and tactics.

Strategy: Co-ordinated long-term planning.

Tactics: Opportunities to influence problems. 

• Standardised products
• Products that everyone needs (Milk, Petrol, Potatoes)
• Most customers buy the same
• Some companies attempt at branding and differentiation. 

• A business needs to sell the product for more than the cost it took to make the inputs of the product.
• This requires  the customers to pay more for the product because of the added value the company have placed on the product. 

The characteristics of products/customers are sub-divided into market segments.

Products

• Price
• Speed
• Safety
• Size
• Appearance

Customer

• Age
• Gender
• Location 
• Social Class
• Income
• Behaviour (spending habits)
• Psychological

With stakeholders who have an interest in the business. 

•  Business is their friend
• Has customer interests at heart. 

Why: Customer loyalty

Owners/Shareholders: Owners of the company hope for profits. 

Employees: Employees are entitled to safe working environment and agreed wages. 

Consumers: Quality and standards of the goods/service

Creditors: Expect payment on time. 

Local Community: awareness of the local community and environment.