Market Positioning (Theme 1 Edexcel A Level Business)
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These revision notes cover 'Market Positioning', which is the third topic within 'Meeting Customer Needs' in Theme 1 of Edexcel A Level Business.
Specification topic reference: 1.1.3 Edexcel Business.
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What is a market map?
- Market mapping compares two features of a product or a brand, e.g. price and quality.
Why can market mapping be useful to a business?
- Can help a business decide which products to sell to which markets.
- Can identify gaps in the market.
- Can see the closest competitors and work out a differentiation strategy.
What are the limitations of market mapping?
- Only compares two features/over-simplified.
- Very subjective; based on individual opinion.
What is a competitive advantage? How many examples can you think of?
- Something that allows a firm to be more successful than its competitors, such as:
- Lower costs;
- Advertising and branding;
- Functionality;
- Performance;
- Customer service;
- Sponsorships.
What is added value?
- The difference between the cost of making the products and the selling price.
- Added value = price the product is sold for – cost of producing the product.
Please feel free to leave a comment below if there's anything you'd like clarifying!
Tag: Edexcel Specification A Level Business.
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