chapter 17

Question 1

define marketing strategy

Answer 1

a marketing strategy is a plan to combine the right combination of the four elements of the marketing mix for a product to achieve particular marketing objectives

Question 2

what can be the marketing strategy include

Answer 2

• increasing sales of an existing product
• increasing sales of a product or service by improving it
• increasing market share

Question 3

if the marketing strategy does not combine the elements of the marketing mix correctly then the marketing objectives will not be achieved. for example:

Answer 3

• a product which meets customer needs and is priced at a suitable price which the target market is prepared to pay but potential consumers are not informed about it, promotion is ineffective
• a product which does not meet the needs of the target market will not sell at any price

Question 4

what should be considered when recommending and justifying a marketing strategy for a business

Answer 4

• marketing objective
• marketing budget
• target market
• balanced marketing mix

Question 5

what are some of the following firms on consumer protection

Answer 5

• weights and measures
• trade descriptions
• sales of goods

Question 6

why has there been a large number of business markets in many different countries

Answer 6

• markets in other countries might have much greater growth potential than existing markets. countries in different parts of the world are now developing
• home markets might be saturated and these new markets give chance for higher sales
• there is a wider choice of location to produce products

Question 7

what are the problems of entering foreign markets

Answer 7

• lack of knowledge
• cultural differences
• exchange rate changes

Question 8

what are some of the methods to overcome the problems of entering new markets abroad

Answer 8

• joint ventures
• licensing
• international franchising
• localising existing brands

Question 9

what are the main limitations of joint ventures

Answer 9

• management conflict between two businesses
• profits shared

Question 10

what are the main limitations of licensing

Answer 10

• quality problems caused by inexperienced licensee could damage brand reputation
• licensee now has access to information of how a product is made

Question 11

what are the main limitations of international franchising

Answer 11

• quality problems or poor service offered by franchisees
• training and support will need to be provided by franchiser

Question 11

what are the main limitations of localising existing brands

Answer 11

• may be less successful than a new product made to meet local cultures
• expensive change packaging