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There are lots of ways that businesses can to their products and services.
They can do this by improving the product or service in some way or by branding to improve the that the customer has of the product or service. For example with Lexus and Toyota cars, customers would identify the Lexus as the superior brand even if they had never driven one.
Added value can be defined as the difference between the final price charged to the customer and the cost of any processes applied to the product. For example in fish fingers, the customer gets added value because the fish has been gutted and prepared, the fish has been cut into bite-sized fingers and the breadcrumbs have been applied ready for oven baking or frying. In this example the customer gets the benefit of added value through the of the product.
Market mapping is a diagram that is used as a decision-making tool in business. It plots the current products or industry rivals on the map in order to identify in which sector there may be a .
The axes used for each diagram are specific to that industry, e.g. high quality and low quality axes might be applied to the home entertainment system market. Market map diagrams can be used by a start-up to identify who their main competitors are or by an established business as a way of formulating a strategy to the business in the marketplace.
The purpose of is to identify that the product or service is different from its close competitors in some way. Consider the market for headphones: there are some that are available for as little as £1.99 but others like Beats which can cost £299 upwards. Companies can differentiate their products through and reputation, through customer service, through value for money or through product features.