Syllabus: Pearson Edexcel AS Business
Module: Meeting Customer Needs
Lesson: 1.1.3 Market Positioning

Introduction

This Pearson Edexcel AS Business lesson on Market Positioning forms the final part of the 1.1 module on Meeting Customer Needs, within Theme 1: Marketing and People. It builds directly on prior knowledge of customer segmentation and market research, and introduces one of the most visual and strategic tools in marketing – market mapping.

Understanding how a product or service is positioned in the market is vital for competitive advantage, customer targeting, and long-term strategic planning. This topic aligns closely with Assessment Objective 1 (knowledge and understanding), AO2 (application), and AO3 (analysis), and it frequently underpins higher-mark extended response questions, especially in Paper 1.

Key Concepts

The 1.1.3 lesson covers several interlinked ideas, which are best delivered in sequence:

• Market Mapping: Students learn how to plot businesses or products based on two chosen variables (e.g. price vs quality), helping visualise market gaps and overcrowded segments.
• Product Differentiation: Identifying what makes a product stand out – USP (Unique Selling Point), branding, design, ethics, or convenience. Key for value-added strategies.
• Competitive Advantage: The sustainable edge a firm has over rivals. This could be cost-based (e.g. Aldi) or differentiation-based (e.g. Lush).
• Positioning Strategies: Cost leadership, differentiation, or focus. Students begin to explore how brands like IKEA, Apple, or Primark fit these models.
• The Role of Market Research in Positioning: Revisits earlier content on primary and secondary research to justify positioning decisions.

Tip: Use diagrams early – market maps can be quickly drawn and adapted to various scenarios. It’s visual, interactive, and gets students talking.

Real-World Relevance

Market positioning is one of the most tangible ways to connect abstract marketing theory to real-world decision-making.

• Greggs vs Pret: Same market (fast food/quick service), but positioned very differently. Greggs focuses on value and convenience. Pret positions itself on health, freshness, and ethical sourcing.
• Gymshark: A case study in effective positioning via social media and brand storytelling. It carved out a niche in the saturated fitness market by combining price competitiveness with aspirational branding.
• Barbie vs Bratz vs LOL Surprise: Toys are an excellent case for market mapping. Each brand targets a slightly different age range, design style, and price point.

These examples demonstrate that positioning isn’t just about being different – it’s about being relevant to your target segment.

How It’s Assessed

Paper 1: Marketing and People is the primary location for this content. Common question types include:

• Short-answer: “State one benefit of using market mapping.”
• Application: “Using the data provided, plot the competitors on the market map.”
• Analysis and Evaluation: “Assess the impact of successful market positioning on a new business.”

Command words to watch for:

• “Explain” – students must go beyond definitions.
• “Analyse” – draw out cause-effect, especially how positioning influences sales or pricing.
• “Evaluate” – consider whether market mapping is always useful (e.g. in dynamic or fragmented markets).

Sample question: A new vegan chocolate brand is entering the UK market. Evaluate the usefulness of market mapping to identify an appropriate positioning strategy.

Enterprise Skills Integration

This topic is a strong fit for several Enterprise Skills:

• Decision-Making: Choosing a positioning strategy requires weighing trade-offs.
• Problem-Solving: How should a business respond if the market map shows a saturated field?
• Communication: Explaining a brand’s USP clearly is essential in pitch or marketing materials.

Suggested tool: MarketScope AI
Use this to simulate how different brand messages, pricing decisions, or design changes affect a firm’s perceived position on the market map. Helps students visualise strategy in motion.

Careers Links

This lesson supports Gatsby Benchmark 4 (Linking curriculum learning to careers) and opens up direct pathways to roles such as:

• Marketing Executive – Positioning is part of everyday campaign planning.
• Brand Manager – Responsible for maintaining a product’s identity across touchpoints.
• Market Research Analyst – Uses qualitative and quantitative data to inform positioning decisions.
• Entrepreneur – Understanding gaps in the market is the bedrock of successful start-ups.

For a cross-departmental activity: Invite a local business owner or marketing freelancer to explain how they identified their own market niche.

Teaching Notes

Based on our empathy research with teachers, SLT, headteachers, and careers leads​, here’s how to make this lesson practical, engaging, and time-respectful:

Suggested Starter:
Ask students to plot their favourite fast-food brands on a blank market map (e.g. Price vs Healthiness). Then ask: “Where would you place a new healthy pizza brand?”

Stretch Task:
Give students a failed product (e.g. Crystal Pepsi, Google Glass) and ask them to argue whether poor market positioning contributed to its flop.

Common Pitfalls:

• Students confuse differentiation with just being “better” – emphasise relevance to a chosen market segment.
• Misusing market maps – remind them it’s a tool for analysis, not an exact science.

Teacher Tip:
Link this lesson back to earlier topics like segmentation and market research to reinforce how data supports positioning.

For SLT and Heads:
This lesson is easy to integrate with enterprise initiatives or Gatsby-linked career sessions. It can also slot into cross-curricular work with Media, Design Tech, or even PSHE (e.g. consumer influence).