3.4 Marketing Strategies

Question 1

what is legal controls

Answer 1

laws that control the activity of businesses

• Protect consumers from faulty and dangerous goods
• Prevent the businesses from using advertising to mislead consumers
• Protect consumers from being exploited in industries where there is little or no competition, also known as monopolising

Question 2

problems and entering foreign market

Answer 2

• Lack of market knowledge
• Difference in language and culture
• Economic differences
• Social differences
• Difference in legal controls to protect consumers

Question 3

method to overcome problems of entering foreign market

Answer 3

Joint venture - an agreement of two business to work together on a project

Question 4

Advantages(4) of joint venture

Answer 4

• Reduces risks and cuts costs
• Each business brings different expertise to the joint venture
• The market potential for all the businesses in the joint venture is increased
• Market and product knowledge can be shared to the benefit of the businesses

Question 5

Disadvantages(2) of joint venture

Answer 5

• Any mistakes made will reflect on all parties in the joint venture, which may damage their reputations
• The decision-making process may be ineffective due to different business culture or different styles of leadership