LO3- 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. 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...
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