Syllabus: Pearson - A Level Business
Module: 1.1 Meeting Customer Needs
Lesson: 1.1.3 Market Positioning

Introduction

This article explores Market Positioning, a key element of Pearson Edexcel A Level Business 1.1.3. Sitting within Theme 1: Marketing and People, this topic directly supports students’ understanding of how firms identify and occupy a space in a competitive market. It underpins much of the strategic decision-making explored in later units, and is crucial for learners aiming to grasp how businesses differentiate themselves to meet customer needs. Effective delivery of this topic equips students with analytical and evaluative skills vital for both exams and real-world business scenarios.

Key Concepts

The Pearson Edexcel specification outlines the following key concepts under 1.1.3 Market positioning:

• Market mapping: The use of perceptual maps to visually identify how products are positioned in relation to competitors based on key variables such as price and quality.

• Competitive advantage: Understanding how businesses can create and sustain advantages through USP (unique selling points), brand identity, or operational efficiency.

• Differentiation: How businesses distinguish their product or service to appeal to target segments, creating perceived value.

• Adding value: Strategies such as innovation, customer service, design or brand to increase the worth of a product beyond its cost.

These concepts provide the foundations for understanding broader marketing strategies and tie closely to topics such as branding, market segmentation, and product development.

Real-World Relevance

Market positioning is a real and ongoing strategic concern for all businesses. For example:

• Greggs vs Pret A Manger: Greggs has repositioned itself in recent years as a low-cost, quality-driven food-on-the-go option, appealing to a wide demographic, while Pret targets a more premium, health-conscious urban market.

• Dyson: A classic example of market positioning based on innovation and premium design, carving out a niche distinct from cheaper alternatives.

• Supermarkets: Aldi and Lidl have maintained a cost-leadership positioning that challenges the likes of Tesco and Sainsbury’s on value, significantly shifting UK consumer behaviour.

Teachers can use market mapping exercises with these brands to demonstrate how businesses occupy and shift positions in response to market changes.

How It’s Assessed

In the Edexcel A Level Business assessment:

• Paper 1 often includes questions on market positioning when discussing marketing and customer needs.

• Students may encounter data response questions requiring interpretation of a market map or comparison of positioning strategies.

• Typical command words include:

  • Explain (e.g. explain how a firm uses market positioning)

  • Analyse (e.g. analyse the benefits of effective positioning)

  • Evaluate (e.g. evaluate the impact of repositioning on a business’s success)

Exam practice should include interpreting market maps, applying knowledge to new contexts, and justifying strategic decisions with supporting evidence.

Enterprise Skills Integration

Market positioning develops several enterprise competencies:

• Decision-making: Choosing how to position a product based on customer insight and market conditions.

• Analytical thinking: Evaluating data such as customer preferences, pricing, and competitor strategies.

• Creativity: Developing unique selling points and value-added propositions.

• Communication: Articulating a clear brand message aligned with the desired position.

Classroom activities could include a simulated product launch or a brand redesign, requiring students to justify their market positioning choices.

Careers Links

Understanding market positioning supports Gatsby Benchmarks 2 and 4 by linking curriculum learning to real-world business roles. Relevant career pathways include:

• Marketing Executive: Responsible for defining brand image and market placement.

• Product Manager: Makes key decisions about how products meet market needs.

• Brand Strategist: Shapes the perception and competitive identity of a business.

• Business Consultant: Advises firms on strategic positioning and differentiation strategies.

Case studies from employers such as Unilever or Virgin can offer insight into how these roles function in different sectors.

Teaching Notes

• Start with market maps: Use simple two-axis grids comparing, for example, price and quality to map out familiar brands. Then build complexity by adding multiple variables.

• Connect with prior learning: Reinforce links to segmentation (1.1.1) and market research (1.1.2), helping students see the full picture of customer-focused marketing.

• Common pitfalls: Students often confuse positioning with segmentation. Emphasise that segmentation is about who the customer is, whereas positioning is about how a product is seen in relation to competitors.

• Assessment prep: Encourage students to justify decisions using data, rather than opinion, and to critique strategies from multiple perspectives.

• Extension activities: Challenge students to reposition a well-known brand to target a different segment or geographic market. Ask them to explain their reasoning and predict the potential risks and benefits.