Using the marketing mix to build competitive advantage
The A description of marketingâproduct, price, promotion, place. is usually used to gain a How a business endeavours to outperform its rivals. over other businesses. A competitive advantage can be gained through:
- offering products at lower prices than competitors
- ensuring that the product has The difference between the cost price and selling price. to distinguish it from those of the businessâ competitors
Not every product can have the lowest price. Therefore, it is important for businesses to use the marketing mix to highlight other ways that they have added value to their products and make their products stand out from those of their competitors. This might include:
- product â highlighting how the product is better than competing products, especially if it has a The distinctive factors that make a product or brand stand out from rivals.
- price â deciding whether to charge the lowest possible price or highlight the quality of a product by charging a price that reflects the quality
- place â choosing whether the product will be widely available or sold in a smaller number of outlets
- promotion â ensuring that the promotion activity is consistent, and fits in with any brand image the business wants to maintain
Certain elements of the marketing mix may be more important than others, and this will vary according to the product, market and competitors. For example, a manufacturer of premium mobile phones may focus more on the features of the phone and the The method by which goods or services are promoted to their potential consumer base. and brand promotion around it. In contrast, a manufacturer of a budget mobile phone is likely to put more emphasis on the price.