3.

1 Explain how products are developed to sustain competitive

advantage
Every company wants to manage the sustainable competitive advantage. Competitive advantage
helps company to maintain and improve the competitive position of the company in the market. To
get a better competitive advantage company should focused on research because research helps in
to give better knowledge about customer and competitor. The companies can achieve many
strategic benefits by developing innovating new products and by giving better service quality to
customers in compare to competitors. It is essential that company understand the need of
customers, technological innovation, and government regulation so they can sustain in competitive
advantage (Cooke, 2000). For example Sainsbury is introducing a new clothing range in the market
to get a competitive advantage they should improve their clothes quality. In UK people are more
focus on quality rather than price. So if product quality is better than people will prefer their clothing
range.

3.2 Explaining how distribution is arranged to meet customer

convenience requirements
Process through the customer avail companies products and services is known as channel of
distribution. Product can easily accessible by customers if company develop proper distribution
system and it also helps in improve the sales of the company and company revenue is also
increased. Three types of distribution strategies are used by companies such as intensive, selective,
exclusive distribution strategy. For their new clothing range Sainsbury should follow exclusive
distribution strategy. In this distribution strategy their clothing range is only available to Sainsbury
outlets and their online websites. They should avail this clothing range to their websites so they can
easily attract with customer, know about their needs and demand and provide them products
(Hanssens and Dekimpe, 2004).

3.3 Explaining how prices are set to reflect an organizations

objectives and market conditions
On particular product and service the amount of money that customers are willing to spend can be
defined as price. In marketing mix price is the most vital components. Pricing strategy which is
followed by companies is competitive pricing, cost based pricing, value pricing, anti competitive
pricing strategies. Sainsbury should adopt competitive pricing strategies for its new product so they
can sustain in the business operations. With the help of this strategy Sainsbury maintain leading
position in market and compete with competitors. In order to stay competitive in the market this
strategy is directing the company. In different locations according to the income level of the
customers Sainsbury has tailored its prices. As to give value of products to its customers and

achieve the short term sales they focus on value based pricing to better position. Market which is
price sensitive or to attract a particular segment they follow the low cost pricing strategy (Hlavinka
and Ferguson, 2007).

3.4 Illustrate how promotional activity is integrated to achieve

marketing objectives
To achieve marketing objectives integrated strategies are required by companies. Promotional mix is
a part of these strategies (Manktelow and Carlson, 2013). The promotional strategies focus on
strategies where to tell about its products to consumers business can use provide information to
consumers. Promotional strategies which should be used by Sainsbury are advertising, sales
promotion and personal selling. The advertisement strategy is integrating combination of price and
place. In this company advertise its product tell about the price and the location where this product
can find. Personal selling strategy is integration of promotion and price strategy because in this
salespeople is trying to sell their product on price basis. Sales promotion strategy is integration of
price, product and places. This all strategies are working together to achieve the organization
objective (Arnett and Hunt, 2004).