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A competitive advantage is an advantage gained over rivals by offering consumers greater value, either by means of lower prices.
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Let’s recap:
What is the marketing mix?
Revision time…
Marketing mix – the elements
Marketing
element
Description
Product The good or service that the customer obtains
Price How much the customer is paying for the product
Promotion How the customer is found and persuaded to buy
the product
Place How the product is distributed to the customer
A competitive advantage is an advantage
gained over rivals by offering consumers
greater value, either by means of lower prices
or by providing greater benefits and service
that justifies higher prices.
The business will balance all elements of the
marketing mix in order to establish a
competitive advantage over rivals.
What is a competitive advantage?
Remember Nike:
Let’s review the launch of Nike’s running shoe
As you watch the clip, focus specifically on the product element of the marketing mix: v Identify the features that will help differentiate Nike’s running shoe from those offered by its competitors and therefore enable Nike to enjoy a competitive advantage
How should Nike price its new running shoe? Justify your decision
Product
Price
Promotion
How will the product and price
influence how the shoes are promoted?
High priced, differentiated running shoe for long distance runners. Promotion needs to reach the target market and create a “buzz” around the brand.
Creating a competitive advantage –
product differentiation
A large scale business may seek
to create a competitive
advantage through charging
lower prices than its
competitors. In this situation,
the business will seek to
minimise costs, operate on a
large scale, charge a low price
and sell high volumes of
products.
Linking your knowledge to a business context:
Whitbread plc’s latest hotel brand – hub by Premier Inn
Make sure you watch carefully
In the format of a tweet
280 characters, your
challenge is to describe
the Hub to potential
customers
#Aboutthehub
In your same group of 3, explain how the hub by Premier Inn
uses each element of the marketing mix
ENSURE YOUR ANSWER IS IN CONTEXT
Product
Price
Promotion
Place
Be prepared to share your ideas
