1. Candidates should be able to: Define market mapping
– Market positioning– syllabus
Candidates should be able to:
Define market mapping
Assess the factors influencing the competitive advantage of a product or service
Describe the purpose of product differentiation
Evaluate how firms might add value to products/services

2. Market positioning and mapping – definition
Market positioning is concerned with the perceptions _________ have about products, e.g. factors such as quality, USP, status and value for money. Consumers often position a product or firm in relation to its ______________
Market mapping is used when launching a new product or service in order to decide _______ to position the brand in relation to customer perceptions and the positioning of competitors.

3. Market mapping – two stages
1. Identify two pairs of key features of consumers and their perceptions within a market – these will relate to tastes, features of the product etc. (this is subjective and up to the business to decide, may use market research)
2. Place every brand/company in a grid – this will show where the competition is concentrated and where there might be ‘gaps’ in the market

4. Market mapping – fast food example
1. The key features could be young versus older consumers and enjoyable versus healthy!
2. Place every brand/company in a grid – this will show where the competition is concentrated and where there might be ‘gaps’ in the market McD, BK, fish & chips, M&S sandwiches, Subway
healthy
younger customer
older customer
enjoyable

5. Market mapping – benefits and drawbacks

6. It may be through product differentiation or promotion.
Competitive advantage - definition
“Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match” Philip Kotler
It may be through product differentiation or promotion.
What is the competitive advantage of Lidl & Aldi? Waitrose? What might this mean for Tesco?

7. What is product differentiation?
E.g.
How many substitutes will there be for a highly differentiated product?
The differentiation is referred to as the USP, what does this stand for?

8. Actual or perceived differences:
How might product differentiation be created?
Actual or perceived differences:

9. What is the purpose of product differentiation?

10. Cost leadership – aim to have the
Michael Porter’s methods of gaining competitive advantage
Cost leadership – aim to have the
Differentiation – aim to offer a
Focus – aim to meet the needs of a

11. E.g. what is the figure in catering?
Adding value
Adding value is the value of the process of transforming the materials (inputs) into products and services (outputs)
How is it measured?
E.g. what is the figure in catering?
When a business adds value, the value of the finished product is ___________ than the sum of all the values of the inputs

12. How can a business add value and what are the benefits?