Model Answer (Market Mapping)

žWhat are the benefits to a restaurant of using market mapping and what are the implications in them positioning their business incorrectly(i.e. Setting high price for poor quality)?
If a restaurant uses market mapping, the restaurant is able to position their business in the market so that consumers are aware what to expect from different restaurants. e.g The Cheesecake Factory is positioned in a relatively high price with a high quality expectation from consumers. It allows a restaurant to establish the correct targeted consumers who are willing to pay certain prices, expect specific product quality etc. If a business positions itself incorrectly, consumers may not be offered the quality of food they expect for the price they are paying eg. low quality foods for high prices.  The restaurant may ultimately suffer a decrease in demand and therefore profits if the pricing strategy does not match the quality of food available on the menu. It is hard then for a business to re-position themselves without losing creditably or their established customer base. With loss of profits and demand, the business may be forced to change their complete brand image, cut costs through lowering quality of meals or even cut staff to maintain business operation with decreased revenue.