Marketing advantage
| Marketing advantage |
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| See also |
Marketing advantage is one form of competitive advantage with special attention paid to superiority of marketing activities, promotion, marketing mix, marketing strategies, marketing processes, market reach, perception of brand, and other strengths connected to this functional strategy of the corporation.
Marketing is essentially concerned with exchange and trade. Marketing depends on marketing research, advertising, distribution. Main purpose of marketing is the promotion of the company. Because of marketing - company and brand becomes more recognizable and goes to a larger number of potential customers. The most important advantages of marketing is improving sales and profit the business[1].
Promotion
Promotion - very important activities in the business. Consist of providing information to the client to increase the knowledge about products or services and create name brand more popular. Clever and effectively promotion depends on that clients respond to sales promotion because of the positive experience or because of good value for the customers[2].
The advantages of the promotion[3]:
- acceleration of testing a new product introduced to the market (free product samples and price cuts)
- increase in product sales (discounts and rebates, price cuts, rewards)
- increasing customer loyalty (free substantive help, advice, training)
- financial support allows the organization to acquire a new sales point
- discounts (attractive additions) of prices allow to increase sales in the off-season,
- discounts and rebates for regular customers are a reward and satisfaction for them
- promotions allow you to regulate the content of magazine
Marketing mix
The marketing mix consist of all marketing decisions and actions taken to ensure the success of a product, service or brand on its market. Authors a lot of books think that marketing mix should contain of: product, price, branding, distribution channels, personal selling (face to face), advertising, promotion, packaging, displays, servicing, physical handing, fact finding and analysis. Each from this activities could in positive way affect to increase profit for the company[4].
Marketing mix (grouping these variables into four categories)[5]:
- product
- price
- place
- promotion
Summarized, every company should be provide as follows; in the right product, the right place, at the right price, a the right time.
Advantages of marketing mix[6]:
- creating a product or service that potential client need
- selling product or services in a right place regularly visited by customers
- offered products or services at price that customer expectations
- providing products or services when these customers want it
- make it available when these customers want it
Advantages in the customer relationship
Marketing has a lot of advantages but one of them is making good relationship with partners. Marketing directs own attention to orientation[7]:
- value, innovation and variety. Because of this the organizations which using marketing in company building strong and competitive position into relation to the competition in the market.
Branding
Branding is a process when company creating brand awareness and building the desired image in the eyes of consumers. This process effectively emphasizes values and distinguishes the brand. This is good way to provide information to the target group. Strong and famous brand build the trust and loyalty of customers. Branding allows to effectively show knowledge and experience a whole company[8].
Advantages of branding[9]:
- greater range of the offer
- good reputation of the company
- higher margins
- building the desired image
- consolidation in the memory of customers
Market research
Market research - consist of all activities to gather information about target markets and customers. It helps to have an advantage over the competition. During the process of market research information is regularly collected and using in statistical methods - it should helps to making good decision[10].
Advantages of market research[11]:
- improve the communication with current and potential client
- helps to identify opportunities in the market
- minimizes risks
- measures a company's reputation
- identifies problems
- helps plan ahead
- help establish trends
- helps establish market positioning
Examples of Marketing advantage
- Brand Recognition: Having a recognizable brand is a marketing advantage. Companies that have a strong, recognizable brand are able to build customer loyalty, as customers will recognize and trust the brand. This also makes it easier for the company to build relationships with new customers and to stand out from competitors.
- Digital Presence: Companies that have a strong digital presence can reach more customers, as customers are now increasingly using the internet to shop. Companies with a strong digital presence can also take advantage of digital marketing techniques, such as SEO and social media, to reach their target audience.
- Customer Insight: Companies that have a strong understanding of their customers can create tailored marketing campaigns that are more effective in reaching their target audience. This includes having a deep understanding of customer demographics, behaviors, and preferences, as well as utilizing customer feedback to inform marketing strategies.
- Innovative Strategies: Companies that are creative and innovative in their marketing strategies can gain an advantage over their competitors. This includes creating unique campaigns, utilizing new technologies, and finding new ways to reach customers.
- Adaptability: Companies that are able to quickly adapt to changes in the marketplace can gain an edge over their competitors. This includes understanding customer trends and being able to quickly make changes to product offerings or marketing strategies in order to capitalize on emerging opportunities.
Limitations of Marketing advantage
- Limited Reach: Marketing advantage depends on the company's ability to reach their target market. If a company has a limited budget or is unable to access the right channels, they may not be able to reach their full potential customer base.
- Limited Resources: Companies may lack the resources to effectively implement their marketing strategies. Without the necessary budget, staff, or technology, a company may not be able to effectively execute their marketing plans.
- Market Dynamics: The changing nature of the market can make it difficult to maintain a marketing advantage. Companies must be able to quickly adapt to changes in the market and evolve their strategies to remain competitive.
- Brand Perception: A company's brand perception can make or break their marketing advantage. If customers have a negative perception of a company's brand, it can be difficult for them to gain a marketing advantage.
- Price: Price is an important factor in gaining a marketing advantage. Companies must be able to offer competitive prices while still maintaining a healthy profit margin.
- Competition: The competition in a market can make it difficult for a company to establish a marketing advantage. Companies must be able to differentiate themselves from their competitors in order to gain a competitive edge.
An effective marketing strategy can be used to gain a competitive advantage in a variety of ways. Some of these approaches include:
- Positioning: Using unique and effective positioning techniques, a company can stand out from its competitors and attract customers. By positioning the product or service in the minds of customers and prospects, a company can create preference and loyalty.
- Messaging: Crafting the right message and delivering it in the right way can help customers to connect with a brand. Well-crafted messaging can create an emotional connection between the customer and the brand, leading to higher customer loyalty.
- Branding: Creating a strong and recognizable brand can help a company to stand out from its competitors and build customer loyalty. A strong brand identity can help customers to form a stronger connection with a company.
- Pricing: Setting the right price for a product or service can provide a competitive advantage. Pricing the product or service too high can drive away customers, while pricing it too low can cut into profits.
- Promotion: Promoting a product or service using the right channels and methods can help to create visibility and awareness. Creating the right promotion strategy can help to reach the right customers and generate more sales.
In summary, marketing advantage can be achieved through a number of approaches, including positioning, messaging, branding, pricing, and promotion. By applying these approaches, a company can gain a competitive advantage and build customer loyalty.
References
- Belohlavek, P. (2008). Unicist Marketing Mix, The Unicist Research Institute, Blue Eagle Group.
- Brown, L.O. (2008). Market Research and Analysis, Wildside Press LLC.
- Bruhn, M. (2003). Relationship Marketing: Management of Customer Relationships, Pearson Education.
- Hunt, S. D., & Lambe, C. J. (2000). Marketing's contribution to business strategy: market orientation, relationship marketing and resource‐advantage theory. International Journal of Management Reviews, 2(1), 17-43.
- Jayachandran, S. (2002). Marketing Management, Excel Books India.
- Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The resource-based view and marketing: The role of market-based assets in gaining competitive advantage. Journal of management, 27(6), 777-802.
- Yeshin, T. (2006). Sales Promotion, Cengage Learning EMEA.
Footnotes
Author: Anna Klisiewicz
