3.4 Marketing strategy Flashcards
What is a marketing strategy?
A plan using the right marketing mix to achieve a marketing objective.
What factors does a marketing strategy depend on?
Market size, competitors, objectives, target market, and budget.
What is a marketing objective?
A goal such as increasing sales or improving an existing product.
What happens if a product meets consumer needs but isn’t promoted?
No one will buy it because they don’t know about it.
What is the Sale of Goods Act?
It ensures goods meet quality standards and are fit for their intended purpose.
What is misleading promotion?
Giving false or inaccurate information to consumers about products or services.
What is the effect of legal controls on marketing?
It increases business costs by requiring adjustments to goods, ads, and packaging.
What is an opportunity of entering a new foreign market?
Growth potential in developing countries with increasing incomes.
What is a problem with entering a foreign market?
Lack of knowledge about competitors or consumer habits.
What is a joint venture?
A method to overcome lack of market knowledge by working with local businesses.
What is licensing in international marketing?
Allowing a local business to sell goods under the company’s name.
What is a limitation of joint ventures?
Management conflicts and shared profits.
What is a limitation of licensing?
Quality issues from inexperienced licensees that could damage the brand.
What is a benefit of franchising?
Local knowledge is used to adapt the business for the foreign market.
What is localizing existing brands?
Adapting the product and brand to meet the needs of the local culture.
What is a limitation of localizing brands?
It may be expensive to change packaging and promotion for each market.
What is the impact of cultural differences when entering foreign markets?
Products may not sell well due to cultural preferences, e.g. alcohol in the Middle East.
What is the impact of exchange rates on foreign markets?
The price of imported goods can increase due to unstable currencies.
What is one problem with transport costs in foreign markets?
Transport can be expensive, reducing profit margins.
What is a benefit of lowering trade barriers?
It becomes cheaper to enter foreign markets.
What is one risk of entering foreign markets?
Increased risk of non-payment for goods or services.
What is a benefit of market research before entering a foreign market?
It helps businesses understand competitors and local consumer habits.
What is the impact of import restrictions on foreign markets?
Imported goods become more expensive, reducing sales.
