34: Marketing and competitiveness

Question 1

Degree of competition

Answer 1

The number and size of businesses operating in a given market, be it local, regional, national or international.

Question 2

Marketing conditions

Answer 2

The nature of the product, the needs of consumers, the number of firms and the ease of entry to the market.

Question 3

Competitiveness

Answer 3

Characteristics that permit a firm to compete effectively with other businesses.

Question 4

Competitive advantage

Answer 4

Discovering and using methods of competing which are distinct and offer consumers greater received value, than those of rivals in the market.

Question 5

Marketing methods to increase competitiveness:

Answer 5

• MARKET RESEARCH. Will identify needs of consumers which can be met by the business through an effective integration of the main elements.
• PRODUCT. Product developments can be make to existing products during the product life cycle, and new products can be launched into the market, possibly with a USP or at least clear differentiation.
• PROMOTION. By using the full range of options available, a firm can create a promotional mix that will attract the attention of consumers and encourage them to choose one business over others in the market.
• PRICING. Pricing is a difficult element for smaller firms to use, as they are not free to choose the prices they charge. Must select best tactics to make short-term gains such as loss leaders to increase overall sales.
  The importance of elasticity of demand should not be underestimated. A very small short-term drop in price can have a positive impact on total revenue, particularly in a competitive market.
• PLACE. By keeping up with e-commerce developments, one business can gain a significant cost advantage over rivals. Using the most appropriate outlets and distributors can certainly help to create competitive advantage.