3.4 Marketing Strategy Flashcards
What is marketing strategy?
Marketing strategy is the overall plan for achieving a businesses marketing objectives, within the marketing budget.
What does marketing strategy contain?
It contains all the elements of marketing we have looked at from market research, through brand image to the 4Ps.
What is a crucial part of the marketing strategy?
A crucial part of marketing strategy is a balanced marketing mix, where each of the 4Ps works together in order to achieve the marketing objectives.
Each product is unique and will have a unique marketing mix.
For a music streaming service the place is not so important, as consumers can access the service from anywhere with an internet connection.
For a coffee shop or restaurant location is key, as the location must be convenient for consumers.
What is the effect of legal action on businesses?
This is usually a very high cost for a business, damages a business’ reputation and has a negative effect on brand image
What are the things that can result in legal action in businesses?
business can’t make false or misleading claims about its products, like pills that will cure all illnesses or a dating site that guarantees you will find true love.
business must make sure its products are fit for purpose and safe to use.
businesses must make sure they don’t use their dominant position to stop competitors or exploit consumers.
What does international marketing focus on?
International marketing focuses on the challenges of expanding into new countries and finding solutions to these difficulties.
Despite the huge growth potential, moving into international markets has obstacles which must be overcome. Hugely successful multinational corporations have failed when moving a winning marketing mix abroad.
why can it be so tough expanding internationally?
there are language and cultural difficulties. Business will have to employ specialists to translate all communication which adds costs, and also places a barrier which may lead to ineffective communication.
Cultural difference may mean products need to change to be successful in other countries.
social differences like the average age of the population, and income differences between richer and poorer countries can radically affect the success of product launches in international markets.
legal controls vary from country to country. Health and safety regulations in a new market may mean that a product has to be radically redesigned, adding much higher costs to production and reducing profit margins.
international markets are completely unknown. If the business does not have a strong international brand image it will also be unknown to consumers. Without market information on consumers’ needs and wants, current trends, preferred distribution channels and effective local marketing strategies, expansion can be a high risk strategy.
how can a business increase its chances of success and overcome the challenges of international expansion?
Joint venture
Franchising
Licensing
What is liscensing?
Licensing is a business arrangement in which one business gives a company in the international market permission to manufacture its product for a specified payment. This means the company in the international market or licensee will deal with all the language, cultural and social differences, and any legal issues.
What are the limitations of liscensing?
the licensor loses some control over the manufacture of its products. If there are quality issues with products made by the licensee in the international market it could damage a business’s brand image.
