3.4 - marketing strategy

Question 1

what is a marketing strategy?

Answer 1

a plan to combine the right combination of the four elements of the marketing mix to achieve the objectives of the business

Question 2

what are some legal controls on marketing?

Answer 2

• Weights and Measures Act - making sure the good is the correct weight/measurement ​
• Trade Descriptions Act- Making sure the product is correctly described e.g. the material/ the ingredients ​
• Sale of Goods- Makes sure businesses are supplying goods that are not faulty and a are not dangerous. E.g., Electronics that are safe to use.

Question 3

what are the opportunities of entering new foreign markets?

Answer 3

• more growth potential as have access to more customers in foreign markets e.g., Tiffany Jewellery opening in India ​
• home markets might be saturated and so limited opportunities for growth ​

Question 4

what are the problems of entering new foreign markets

Answer 4

• lack of knowledge of the foreign market e.g., which competitors there are and what customers in that country want ​
• cultural differences- may mean product won’t be popular in other markets e.g., alcohol/pork/beef. May have to modify product which is expensive ​
• exchange rates may negatively impact customers ​
• transport costs may be higher ​

Question 5

benefits and drawbacks of using joint ventures to overcome problems with entering new foreign markets

Answer 5

• can gain important local knowledge about the culture in the country so they adapt the product
• need to share profits between 2 firms​
• management conflicts between the two businesses

Question 6

benefits and drawbacks of using licensing to overcome problems with entering new foreign markets

Answer 6

• goods do not have to be physically transported to the new market which saves time and transport costs
• inexperienced license could damage brand reputation ​
• silence now has access to information about how the product is made – they could develop a better version and become a competitor

Question 7

benefits and drawbacks of using franchising to overcome problems with entering new foreign markets

Answer 7

• local knowledge is used to know where to place the store
• poor management + reputation of one branch can ruin the entire brand image
• cannot keep 100% of the profit from each branch

Question 8

benefits and drawbacks of localising existing brands to overcome problems with entering new foreign markets

Answer 8

• meets local customer needs increasing customer satisfaction
• expensive to change packaging/advertising/develop