- 20 Marks
Question
Marketing mix refers to the particular combination of key variables under a company’s control that can be used to affect demand and to gain competitive advantage.
Explain the following:
a) Competitive advantage. (4 marks)
b) Corporate reputation. (4 marks)
c) List the key variables of the marketing mix and, within each, FOUR associated sub-variables.
(12 marks)
Answer
a) ‘Competitive advantage’ may be termed as anything which gives an organization an edge over its rivals in the products it sells or the services it offers. It can also refer to a situation where an organization does something that its competitors cannot do or which they can do only at a disproportionate cost to them. (4 Marks)
b) ‘Corporate reputation’ is an image that describes an organization for its achievements and what it stands for. It also serves as goodwill to the firm. Circumstances that can result in a company having a positive reputation include integrity, good customer relations, reliability, and quality of products/services. A good corporate reputation results in increased demand for company products. (4 Marks)
c) The key variables of the marketing mix may be listed as:
| Key Variables | Sub-Variables |
|---|---|
| Product | Product variety, Quality, Design, Features, Brand name |
| Price | List price, Discounts, Allowances, Payment period, Credit terms |
| Promotion | Sales promotion, Advertising, Sales force, Public relations, Direct marketing |
| Place | Channels, Coverage, Locations, Assortments, Inventory |
(12 Marks)
Total: 20 Marks
- Tags: Competitive Advantage, Corporate Reputation, Marketing Mix, Marketing Strategy
- Level: Level 1
- Topic: Competitive advantage and strategic direction
- Series: NOV 2015
- Uploader: Dotse