meeting consumer needs: market positioning

adding value

offering extra features when selling a product to exceed customer expectations

competitive advantage

advantage that enables a business to perform better that its rivals

market maps

a 2 dementional diagram that shows 2 of the qualities or the characteristics of a brand that rivals other brands

market orientated

a business approach which places the needs of the consumers at the centre of their decision making process

market positioning

the view customers have about the quality, value for money and image of a product in relation to its competitors

market segments

parts of whole market where a particular customer group has simalar characteristics

product differentiation

a attempt by a business to distinguish its product from its competitors

unique selling point

the aspect of a product that clearly distinguishes it from its competitors

product orientation definition

a business approach that focuses on the production process and the product itself

product orientation explanation

• focuses on the production process and the product itself

• focuses consumer wants

• product research,testing and focus

• belief that the product is superior

• not garanteed to meet the needs of the target market

market orientation explanation

• focuses on continually identifying,reviewing and analysing the market’s needs

• they respond more quickly to changes in the market

• greater competitive advantage

• can anticipate market changes

• greater confidence in success of the product

• more market research

• suitable prices

• reduced waste

factors affecting product or market orientation

• nature of a product

• policy decisions

• views of shareholders/owners

• nature of the market → higher production costs lead to market orientation

• degree of competition → less competition means product orientation

factors used to position a market

• benefits of a product

• USP

• qualities of a product

• origin of the product

market mapping

illustrates a range of positions a product can take in a market based on the factors important to a customer

4 types of market segmentation

• psychographic

• geographic

• demographic

• behavioral

geographic

• where the consumer lives

• different parts of the country hve diferent condtitions that affect consumer needs/wants

psychographic

a groups attitudes,opinions and styles

e.g political views

behavioral

usage rate

time and date of consumption

demographic

Social class

Age

Gender

Income

Ethnicity

Religion

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advantages of market segmentation

• improves customer engagement and brand loyalty

• increases competitive advantage

• informs business decisions

• increased customer satisfaction

• increased rate of success

• cost efficient

disadvantages of market segmentation

• requires market research

• time consuming

ways to gain a competitive advantage

• promotion

• product design

• product quality

• customer service

• delivery times

• economies of scale

• flexibility

• ethical stance

product differentiation

an attempt by a business to distinguish it product from its competitors

why is product differentiation used

• make a product different from its competitiors

• highlight unique selling points

• increase competitive advantage

effects of using differentiation on a business

• flexible pricing (adds value and charge premium prices)

• recognition (increases customer appeal )

• product range (can serve multiple segments

• brand development (strong brand identity)

• overcome competition (increases market share and production costs

ways to add value

• customer service

• bundling

• frequent buyer offers

• packaging

• speed of response

• customization