Final answer:
The term for a firm having a better marketing mix than its competitor is 'competitive advantage.' This is achieved through product differentiation, where a firm's products are seen as distinct and more attractive based on factors such as quality, location, or brand reputation.
Step-by-step explanation:
The term that means a firm has a marketing mix that the target market sees as better than a competitor's mix is e. competitive advantage. This can be achieved through actions such as product differentiation, where firms aim to make consumers perceive their products as distinct from those of their competitors. This could involve differentiating physical aspects of the product, its location, intangible aspects, or consumer perceptions. Moreover, firms sometimes follow the pattern of making strategic moves to occupy better market positions, such as the example of two competing firms on Main Street using location strategy to capture more customers.
Even in sectors with little to no economies of scale compared to market size, a competitive advantage can result from a well-established reputation, price leadership, or the strength of a well-respected brand name. Every action taken by a firm that leads to the attraction of more customers or more efficient production is considered a part of creating a competitive advantage.