Chapter 14: Marketing strategy

Question 1

What is a Marketing strategy?

Answer 1

A plan to achieve the marketing objectives using a given level of resources.

Question 2

What are Legal controls?

Answer 2

Laws that control the activity of businesses.

Question 3

What kind of laws affect a business’ marketing function?

Answer 3

1. Ones that protect consumers from faulty or dangerous goods.
2. Prevent businesses from using ads to mislead consumers.
3. Protect consumers from being exploited in industries where there is little to not competition.

Question 4

What is domestic market?

Answer 4

The market of goods and services of a business’ country.

Question 5

What are opportunities of entering foreign markets?

Answer 5

If the domestic market of a business is in decline, then entering a new market may revive sales and revenue.

Question 6

What are Barriers to trade?

Answer 6

Taxes, quotas or bans that one country places on goods of other countries, to prevent or increase the cost of them entering that country.

Question 7

What are some problems of entering foreign markets?

Answer 7

1. Differences in language and culture.
2. Lack of market knowledge.
3. Economic differences.
4. Social differences.
5. Differences in legal controls to protect consumers.

Question 8

What are the methods of overcoming the challenges of entering foreign markets?

Answer 8

1. Franchising
2. Licensing
3. Joint ventures