Chapter 3.4 Flashcards
(22 cards)
What is a marketing strategy?
A plan that combines the 4Ps (Product, Price, Place, Promotion) to meet business goals.
What are the goals of a marketing strategy?
Increase market share, grow sales, use extension strategies, or change branding.
What are the 4Ps of marketing?
Product, Price, Place, Promotion.
What happens when a business uses the 4Ps well?
Sales, reputation, and profit increase.
Example of a company using a good marketing strategy?
Apple with its MacBook Pro.
What is Apple’s product strategy for MacBook Pro?
Custom Apple chip, macOS, Apple ecosystem, high specs, AppleCare.
What is Apple’s place strategy for MacBook Pro?
Available globally in Apple stores and local retailers.
What is Apple’s promotion strategy?
Large marketing budget to advertise widely.
What are legal controls in marketing?
Laws that control quality, price, and advertising.
What are businesses not allowed to do in advertising?
Make false claims or give wrong product descriptions.
What does “fit for purpose” mean in legal controls?
The product must work as claimed.
What is a minimum price law?
A law that prevents selling below a set price (e.g. alcohol in Scotland).
What is market growth potential?
Opportunity to increase sales by entering new markets.
Why expand to foreign markets?
More customers and more profits due to globalization.
What problems can occur in foreign markets?
Language, culture, lack of knowledge, laws, and economic differences.
How can businesses reduce risk in new markets?
Use joint ventures or franchising.
What is a joint venture?
Two businesses share costs, risks, and skills in a new market.
Advantage of joint ventures?
Shared risk and expertise.
Disadvantage of joint ventures?
Shared mistakes and culture clashes.
What is franchising?
Letting someone use your brand and business model in another market.
Advantages of franchising in foreign markets?
Known brand, support, and raw materials are provided.
Disadvantages of franchising?
High cost, shared profit, and less control.
