1.3.5 Market Strategy

Question 1

What is marketing strategy

Answer 1

A plan that aims to achieve a marketing objective

Question 2

Strategies for mass market

Answer 2

• Product:
  Differentiate (USP) will allow the product to stand out from the competition (preferred but not essential)
• Price
  Competitive pricing is used to avoid a ‘price war’. Firms often follow the dominant business (price leadership).
• Promotion
  Heavy advertising and promotion are common e.g. TV
• Place
  Firms will use a varied distribution network (wholesalers, retailers, websites). Consider supermarkets as an example.

Question 3

Strategies for niche market

Answer 3

• Product
  Significant USP e.g. restaurants
• Price
  Firms have more flexibility and can charger higher prices
• Promotion
  Targeted at certain customer groups rather than using national media e.g. loyalty schemes (offering discounts and targeting repeat purchases
• Place
  Distribution channels are chosen selectively and mainly use a single option

Question 4

How do firms develop customer loyalty

Answer 4

Keep customers informed
High quality customer service
Loyalty schemes