Understand the individual elements of the extended market mix Explain how products are developed to sustain competitive advantage 3. 1) Competitive advantage is when a company has a strategic advantage over its rivals. Products can be developed to have a competitive advantage if all developments are made to the product before it goes on the market instead of having many versions of a product which get better as more updated versions of the product are released. The development of new products has to be based on the wants and needs of the customers.
Rather than simply releasing a product and waiting to see if the demand is there for it, firms should be conducting market research beforehand in an attempt to find out whether there is a) a demand for a product and b) a gap in the market for the particular product if the firm releases it. You can make your product different from products made by your opposition, if you can differentiate your product from that of your competitors, then you can position yourself in a prime position in the market.
If you can provide unique and special benefits to your customers that no one else can provide them, then you are well-positioned to maintain them as loyal customers. Explain how distribution is arranged to provide customer convenience 3. 2) There are several ways in which businesses arrange distribution to provide customer convenience. The methods used may vary slightly based on what sort of business is being operated. Distribution comes under the place category in the market mix and companies develop proper distribution systems because accessibility of the customers enhances the potential sales for a company.
... company or product/service capability provided it is relevant to your market and your distribution route. Developing new products does not ... is to adopt a market penetration strategy of gaining more usage from existing customers and gaining customers from competitors. A ... s or distribution arrangements. Other products and services may be more mature, with little or no competitive advantage, in which ...
For example, if the Coca Cola Company does not outsource its distribution services and Coca Cola bottles would have been available only from the factories then customers might not have been willing to get them. It is more convenient for the customers to get Coca Cola drinks from nearby retailers as opposed to getting it from a wholesaler. Therefore, distribution can become a major strength or a weakness for a company. Explain how prices are set to reflect an organisations objectives and market conditions 3. ) Prices are always established with an organization’s objectives or goals and market conditions in mind. Management decides the marketing strategy, sets the organizational goals and objectives, and decides on what product lines and services are worth pursuing. For this reason, prices are always subject to the character and beliefs of those who lead the organization. Prices are also established based on an organization’s goals and the market conditions at any given time in the business’s operations. Companies examine the market and look at the way certain products are performing.
This is how they determine if a product is going to be included in their own product lines or services that they offer. This is also how they decide if they are going to continue to produce a particular product. Products that don’t perform well are often discontinued. Sometimes, prices may be lowered, but this is difficult to do if production costs are still high. A business that cannot see a profit or a sufficient profit on a particular product will simply discontinue it rather than lower the purchase price and lose money on production.
Businesses also look at market conditions in terms of competitor performance and pricing in order to set their own success measures. This is why you will see many businesses producing similar products and pricing those products very similarly as well. Illustrate how promotional activity is integrated to achieve marketing objectives 3. 4) Marketing objectives include objectives to do with profits earned for the company and promotional activities really encourage sales, attract new customers and promote products which help them sell even more quickly and help the company earn more money.
... product. The company must try to capture the competitors market as well as new customers. Customer engagement The new product launched will engage customers ... intangible qualitative aspects of the launch process can make or break a launch ... to the initial, moderately-priced line. The Company Essex Watches is a ... watch industry. Company believes that developing new and enhanced services and technology ...
Promotional activities include in-store demonstrations such as samples of new product being given away to customers for free this promotes certain products, coupons which encourage people to buy products because they get discounts on the items and advertising campaigns which attract people attention to your company and also advertisements help build awareness of both the company and its products. People would not know a particular company offers certain products unless the company advertises them.
Analyse the additional elements of the extended marketing mixes 3. 5) The additional 3p’s added to the traditional 4p’s are physical layout (how a shop looks), provision of customer service (how well customers are served) and processes. Physical layout -today consumers typically come into contact with products in retail units – and they expect a high level of presentation in modern shops – e. g. record stores, clothes shops etc. Not only do they need to easily find their way around the store, but they also often expect a good standard or presentation.
Provision of customer service – customer service is very important in modern service industries. Customers are likely to be loyal to organisations that serve them well – from the way, in which a telephone query is handled, to direct face-to-face interactions. Processes – associated with customer service are a number of processes involved in making marketing effective in an organization e. g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc.