Balancing the marketing mix based on the competitive environment
The term competitive environment A market where there are other businesses producing the same or similar products and services. refers to the pressure placed on a business by its competitors. Businesses that operate in a mass market A market for products and services that are aimed at large groups of customers with similar characteristics. have a tough competitive environment as there are many other businesses offering very similar products and services. This means that if a business charges too much then its customers will go elsewhere. An example of a business that operates in a mass market is the fast food industry.
Businesses adapt their marketing mixA description of marketing–product, price, promotion, place. to try to convince customers that their product is better than the products of their competition. The aim of these adaptations is to gain a competitive advantageHow a business endeavours to outperform its rivals.. They can do this by:
- offering a product or service that fills a gap in the marketA gap in the market refers to a place in the market where there is demand for a product or service that is not currently being met.
- offering better sales promotions, such as buy one get one free (BOGOFF), online discount codes or cashbackCashback is a discount scheme some businesses offer, where a percentage of the cost of an item is paid back to the customer.
- creating a unique selling pointThe distinctive factors that make a product or brand stand out from rivals. (USP)
- developing relationships with existing customers to make them more likely to buy again
