5b. Using the Marketing Mix to Build Competitive Advantage

What is a competitive advantage?

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

What are the types of competitive advantages?

• Distinctive - a product that is different from competitors

• Defensible - ensuring competitors can’t easily copy the product

What are the sources of competitive advantage?

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

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

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

• Brand image & reputation

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

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

• Customer service

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

What are ways a firm can gain a competitive advantage?

• Innovation

• Reputation (branding)

• Building strong relationships with stakeholders

• Adding value

• Differentiation

• Market segmentation

• Price leadership

What is an integrated marketing mix?

Correctly combines each element in the best possible way to ensure consistency and effectiveness

How can an integrated marketing mix help build a competitive advantage?

It creates a cohesive marketing strategy that resonates with customers and differentiates the business from competitors

How does Nike use an integrated marketing mix to build its competitive advantage?

• Product: High quality and innovative design create a perception of exclusivity and quality

• Price: Premium pricing reflects the value of the product, reinforcing the brand's premium positioning

• Promotion: Unique brand image and messaging, like the "Just Do It" campaign, resonate with the target audience and align with Nike’s leadership in sports apparel

• Place: Seamless online and offline shopping experience makes purchasing Nike products easy for customers