ENTREPRENEURSHIP I

 A competitive advantage is an advantage over competitors’ gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

 Positioning is how your target market defines you in relation to your competitors.

 To make your product stand out in a crowd You are competing with all the noise out their competing for your potential customers’ attention If you can stand out with a unique benefit, you have a chance at getting their attention.

 Positioning is how products are perceived in the minds of consumers  How a company sees itself and sees it products are not always the way that customers and potential customers view the products.

 When positioning your product, it is important to focus on how your target market perceives you…. After all they are the consumers most likely to purchase your product  Key tip: you can never make everyone happy, but you MUST make your target market happy in order to SURVIVE!

 Is our product the first in its market? If not, how are our competitors positioned?  Do we have enough money to position our products similarly to the market leader & thus take over as the market leader?  If not, we must find an unoccupied position in the market out target market currently cares about.

 Product Attributes  Benefits  Usage Occasions  Users  Against a Competitor  Away from a Competitor (Quality)  Product Classes

 For example, Krispy Kreme doughnuts were originally available to consumers only at Krispy Kreme bakeries. In the early 2000’s, the company decided to alter its distribution (Place) strategy to include supermarkets and gas stations. While that decision radically increased sales potential by making the product available to more consumers, it also changed how the target market perceived the Krispy Kreme brand.  Think about it: do you view a sandwich that you buy at a gas station differently from a sandwich that you purchase at a casual dining restaurant?

 Product What does the customer want from the product/service? What needs does it satisfy? How and where will the customer use it? How is it differentiated versus your competitors’ products/services?

 Place Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? What do your competitors do, and how can you learn from that and/or differentiate what you do from them?

 Price What is the value of the product or service to the buyer? Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? What discounts should be offered to trade customers, or to other specific segments of your market? How will your price compare with your competitors?

 Promotion Where and when can you get across your marketing messages to your target market? Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct mail? Through PR? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? How do your competitors do their promotions? And how does that influence your choice of promotional activity?