Edexcel Alevel Business Theme 1 1 1 Meeting

Edexcel A-level Business Theme 1 1. 1 Meeting Customer Needs 1. 1. 3 Market Positioning Market positioning is the view customers have about the quality, value for money and image of a product in relation to those of competitors. Some approaches include: • The benefits offered by the product • The USP • The attributes of the product • The origin of the product • The classification of the product Markets change so businesses will have to reposition their product to match the needs of the target market Competitive advantage is a set of unique features of a company and its products that are perceived by customers as significant and superior to the competition. A competitive advantage can be developed by: • Product design • Product quality • Promotion • Customer service • Delivery times • Economies of scale • Flexibility • Ethical stance • Focusing on a particular market segment Market maps are 2 dimensional diagrams that shows two of the attributes or characteristics of a brand those of rival brands in the market LIMITATIONS: • Only 2 dimensional – only 2 attributes can be analysed on the same map • Information needed to plot correctly can be expensive • Consumers perceptions can be different (hard to group) All these can lead to misconceptions and a wrong market map In highly competitive markets, businesses add value to their products. These are the extra features that may be offered by a business when selling a product, which helps to exceed customer expectations so that they chose to purchase from them and not rivals. Examples include: • Bundling • Customer service • Speed of response to customers • Packaging • Frequent buyer offers • Customisation = differentiation, charging a higher price, and meeting the needs of customers better so protecting from competition! Product differentiation is used by businesses to gain a competitive edge over their rivals. In highly competitive markets where lots of firms produce similar goods (homogenous), firms will try to make their product unique in some way so that it stands out. Differentiation can achieved through: • Using flexible pricing • Recognition • Extended product range • Brand development = hopefully beating the competition!