Lesson 1.1.3

1.1.3 Market mapping, positioning and differentiation Quiz: Pearson Edexcel Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.1.3, Market mapping, positioning and differentiation: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.

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The 20 questions

  1. What diagram illustrates the relative position of competing products using two key features?

    • Market map
    • Ansoff matrix
    • Supply curve
    • Decision tree

  2. Which term describes an edge over rivals that enables a business to outperform them?

    • Market positioning
    • Competitive advantage
    • Value addition
    • Comparative advantage

  3. What is the primary aim of product differentiation?

    • Distinguish from rivals
    • Lower production costs
    • Eliminate competitors
    • Increase unit supply

  4. Which action is a direct method of adding value to a product?

    • Reducing staff training
    • Providing a warranty
    • Increasing batch size
    • Lowering selling price

  5. On a market map with price and quality axes, a business is positioned in the high-price, high-quality corner. This is called:

    • A premium position
    • A mass-market position
    • A penetration position
    • A budget position

  6. What does market positioning primarily aim to influence in the target market?

    • Production efficiency
    • Profit margins
    • Customer perception
    • Supply chain speed

  7. Which source of competitive advantage is most difficult for competitors to copy?

    • Patented technology
    • Standard packaging
    • Temporary price cuts
    • TV advertising

  8. On a market map, how is a high-price, high-quality product categorized?

    • Premium product
    • Mass market product
    • Bargain product
    • Economy brand

  9. A product costs £5 to make and sells for £8. A new feature raises unit cost by £1 and price by £3. What is the new profit per unit?

    • £5
    • £6
    • £4
    • £3

  10. How does successful product differentiation affect price elasticity of demand?

    • Makes it unitary
    • Has no effect
    • Makes it elastic
    • Makes it inelastic

  11. On a market map, which firms face the highest level of direct competition?

    • Niche operators only
    • Widely spaced firms
    • Market leaders only
    • Closely plotted firms

  12. A cafe introduces organic ingredients and a mobile app. What is this strategy?

    • Cost minimisation
    • Market penetration
    • Adding value
    • Price skimming

  13. Which of the following is a non-price method of building a competitive advantage?

    • Reducing retail prices
    • Offering seasonal discounts
    • Matching rival prices
    • Excellent customer service

  14. What is an unfilled section on a market map called?

    • Market trend
    • Market segment
    • Market gap
    • Market share

  15. What helps a business maintain a long-term competitive advantage against fast-following rivals?

    • Standardised packaging
    • Unskilled labour
    • Strong brand identity
    • Frequent price cuts

  16. A product sells 2,000 units at £15. Differentiation allows a £3 price rise with no fall in units. How much extra revenue is generated?

    • £6,000
    • £30,000
    • £2,000
    • £3,000

  17. What is a key limitation of using a market map?

    • Requires complex maths
    • Cannot show price
    • Oversimplifies customer views
    • Ignores competitors entirely

  18. Why might a competitive advantage based solely on product features be short-lived?

    • Increases fixed costs
    • Reduces profit margins
    • Lowers brand equity
    • Easily copied

  19. How does adding value benefit a business regarding its pricing strategy?

    • Guarantees tax relief
    • Enables higher prices
    • Eliminates variable costs
    • Forces price cuts

  20. A firm has a 10% share of a market of 2,000,000 units and wants a 15% share, with the market size unchanged. How many extra units must it sell?

    • 50,000
    • 100,000
    • 200,000
    • 300,000

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