Using the marketing mix to build competitive advantage

Competitive advantage

refers to the features of a business and its products that are perceived as superior to its rivals by customers

Competitive advantage is how a firm’s product is made both…

Distinctive - that is it different from the competitors

Defensible - the business can prevent competitors from compying it

Sources of compeitive advantage

There are many ways a firm can gain competitive advantage including…

innovation, reputation (branding), and building strong relationships with stakeholders, adding value, differentiation, market segmentation and price leadership

Sources of business competitive advantage

• Quality - e.g. Audi is well known for the exceptional quality of the finishing inside their cars

• Delivery times - e.g. Amazon Prime delivers products within 24 hours of ordering

• Low Price - e.g. Primark is considered to provide the best value/low price combination

• Reliability - e.g. Apple Macs have an excellent reputation for long life and reliability

• Ethical stance - e.g. Tony's Chocolonely only uses cocoa in their chocolate which is 100% free of slave/child production

• Design - e.g. Dyson vacuum cleaners stand out from the crowd with their original design

• Brand image & reputation

• Price

• Customer service

Integrated marketing mix

one which correctly combines each element in the best possible way

An integrated marketing mix can help to…

build a competitive advnantage by creating a cohesive marketing strategy that resonates with customers and sets the business apart from its competitors

Nike is an example of a business with an integrated marketing mix

• Product - The company’s products are known for their high quality and innovative design. This has helped create a perception of exclusivity and premium

• Price - Pricing strategy is focused on premium prices that reflect the value of product. This reinforces the brand’s premium positioning

• Promotion - Promotion strategy is focued on creating a unique brand image and messaging that resonates with its target audience. Their slogan ‘Just Do it’ campaigns its focus on celebrating athleticism and determination

• Place - Distribution strategy is focused on creating a seamless online and offline shopping experience. This makes it easy for customers to purchase the brand’s products