AS Chapter 3 Market Positioning Booklet

Involves dividing a market into parts that reflect different customer needs and wants.

A smaller segment of a larger market, where customers have specific needs and wants & successful products are highly differentiated

The largest part of the market, where there are many similar (undifferentiated) products offered by competitors

The set of customers sharing common needs and wants that a business tries to connect with

Where a product has a value proposition that is sustainably different from the competition

The place a product occupies in customer minds relative to competing products.

The process of adding value to the cost of inputs into and through the transformation process

Dividing a market into segments based on demographic variables such as age, gender, family lifestyle, religion, nationality ethnicity etc.

Dividing markets into different income segments, often on the basis of social-economic grouping

Dividing a market into segments based on the different ways customers use or respond to a product and the benefits they seek

Dividing a market into different geographical units, such as nations, regions, cities, neighbourhoods or other territories

A market (or positioning) map illustrates the range of “positions” that a product can take in a market based on two dimensions that are important to customers.