Positioning Mapping 1.1.3

Positioning map - is used to place products in a range of positions in the market based on two significant qualities that customers feel are important when looking for the best product in contrast with other products in the market.

Competitive advantage - an advantage over competitors gained by offering consumers greater value either by means of low price or by providing greater benefits and services that justifies high prices.

Possible properties of products customers may be interested in
- low price / high price
- basic quality / high quality
- ethical / not very ethical
- high reputation / low reputation
- light / heavy

Whilst positioning maps are useful conceptual models, care has to be taken when using them in marketing decision making.

ADVANTAGES OF POSITIONING MAPS
☆ help spot gaps in the market that a business could potentially fill
☆ useful for analysing competitors to see who is your main competition and whether there is a need for product differentiation
☆ encourages use of market research so that the business can clearly see what customers value the most in that market

DISADVANTAGES OF POSITIONING MAPS
⊙ just because there is a "gap" doesn't mean there's demand and therefore the gap may not be a profitable one
⊙ not a guarantee of success
⊙ the market research may not be reliable, it could be subjective as it is only one groups opinion of what they feel that brand should do.

☆ MARKET POSITIONING AND COMPETITIVE ADVANTAGE ☆

Remember the customers choose products based on the perception of a product value proposition. How they see the merits of the product is relative to the alternatives (competing products)
Therefore providing a superior value proposition than the competition is a likely source of competitive advantage but only if it can be sustained.

Various possible value differences that have the potential to deliver competitive advantage, for example:
• Offering more for less (good quality at low price)   >  E.g. Aldi,  Lidl,  Costco, Value packs

• Offering more for more (high priced luxury products with prestige value) > Emirates Airlines with more space and higher service

• Offering more for the same (introduce new features or better performance for same price) > E.g. car industry free car servicing for 3 years with a purchase of a car

• Offering less for much less  (no frills, low cost) > Ryan air = basic flying at cheap prices

The main challenge for a business strategy is to find a way of achieving a sustainable competitive advantage over the other competing products and firms  in a market.