Marketing Principle

A competitive advantage

A competitive advantage is a collection of circumstances that allow a corporation or firm to deliver services and items at a lower cost or in a more advantageous manner for their customers. The conditions allow the company to make more profits than its competitors in the same industry. Intellectual property, brand, cost structure, customer service, and cost structure are all variables that contribute to a competitive advantage.

Marketing differentiation

It is critical for a business to differentiate itself from the competition in terms of marketing to guarantee that their ideas reach the clients in a unique way that will entice them to return for the product while remaining cost efficient to the firm. There are ways in which one can make their business different from the others. One is through relationship differentiation. The relationship you build with your clients goes a very long way in retaining them and attracting more loyal clients. Creating a customer interface will allow the clients to feel more valued by the company. The interface will allow communication between the clients and the company and encourage feedback.

Service differentiation

The second one is service differentiation, where the company can come up with a concept where the clients design their own shoes. In such a scenario, the clients get to choose the color, type, or even size of their desired shoes from the comfort of their home. The third is distribution differentiation, where the company delivers the shoes to the clients' doorsteps.

Super-Fast Shoes

One company that has stood out from its competitors is Super-Fast Shoes. They used a strategy where they maintained an extremely low cost on all their expenses except for marketing, where they spent most of their time and funds. The strategy enabled them to reach out to all their target markets in a short time, making them the most profitable in the game (Whitehead, 2014).

Creating value and customer loyalty

Differentiation enables you to provide remarkable value to clients at a reasonable price while creating a win-win scenario which will guarantee customer loyalty in the even in the long-term.

References

Whitehead, A. (2014). New Shoes Marketing Simulation (1st ed., p. 2). Retrieved from http://community.mis.temple.edu/raymondharmer/files/2014/04/New-Shoes-Marketing-Simulation.pdf.