Considering some features of a market on a diagram and plotting where different competitors are in relation to these features. Examples of dimensions include high price Vs low price and basic quality Vs high quality.
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What is market mapping used for?
Identifying where the gaps in the market are.
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What is competitive advantage?
An advantage a business has over its competitors allowing it to succeed in the market.
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What is product differentiation?
How a business differentiates its products through reputation, service, features or value.
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What is perceived differentiation?
Because of marketing and branding etc we see things as being different.
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What is genuine differentiation?
Actually being different.
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What are the advantages of product differentiation?
Being different to rivals protects sales because of loyalty. Also enables higher prices to protect profit margins (demand is not too price elastic if the product is more unique).
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What is added value?
The process of increasing the worth of resources by modifying them to make them worth more in the eyes of the consumer. It makes the product more desirable to a consumer, so they will pay more for it. Not just manufacturing, but also advertising.
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