Market mapping:
A market map (perceptual map) is a diagram that identifies all the products in the market using two key features.
Competitive advantage of a product or service:
Why buy Coca Cola.......
......rather than Pepsi?
There are two different types of competitive advantage:
1.Cost competitive advantage.
Creating maximum value for consumers.
In retailing: Lidl / Aldi
In snacks:
Airlines:
2. Product / service differentiation.
A unique design.
A unique product function.
A unique taste
Superior performance.
The second type of differentiation involves creating differences that exist in the minds of consumers.
A powerful brand can make a product stand out.
The most powerful brands in the world. Details here.
A reputation for quality can also make a product stand out.
Adding value:
Inputs, outputs and the nature of the transformation of resources into finished products. |
Frozen pepperoni pizza is the output.
What would be the required inputs?
Watch this: https://youtu.be/tM4n4upANvQ
Abimbola Balogun started her business in Nigeria with an investment of just 400 naira (£1.60) which bought her enough beads to make two necklaces.
She sold them for 5,000 naira - more than 1,100% profit - reinvested the
money and never looked back. Click on the picture.
The transformation process: 
Pizza and a necklace are manufactured products. We
call manufacturing the secondary sector.
But the transformation process also occurs in the primary and
tertiary parts of the economy. How?
Let me know by leaving a comment below.
Added value = Price of finished product – cost of resources
Adding value can occur through the transformation process or can occur in the mind of the consumer.
Why might people pay more for Polo mints?
$56,000 for a mobile phone?
