Which term describes a diagram illustrating the position of products against variables such as price, quality, and target market?

Which term describes a diagram illustrating the position of products against variables such as price, quality, and target market?

• A. Product Range
• B. Position Map
• C. Price Elasticity
• D. Product Life Cycle

Answer: (B)

A position map is a two-dimensional diagram that places products according to how customers perceive them along key attributes, such as price and quality, and sometimes other factors like target market. By plotting each product, a business can see how it sits relative to competitors, identify gaps in the market, and decide whether to reposition a product or adjust pricing, features, or marketing to attract a desired segment. The other concepts describe different ideas: product range looks at how many products a firm offers, price elasticity measures how demand responds to price changes, and the product life cycle tracks sales over time.

A position map is a two-dimensional diagram that places products according to how customers perceive them along key attributes, such as price and quality, and sometimes other factors like target market. By plotting each product, a business can see how it sits relative to competitors, identify gaps in the market, and decide whether to reposition a product or adjust pricing, features, or marketing to attract a desired segment. The other concepts describe different ideas: product range looks at how many products a firm offers, price elasticity measures how demand responds to price changes, and the product life cycle tracks sales over time.