3.4 Marketing strategy

Question 1

What are ‘legal controls’?

Answer 1

laws that control the activity of businesses

Question 2

What are the purposes of ‘legal controls’?

Answer 2

Protect consumers from faulty and dangerous goods Prevent 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 3

What are the opportunities of entering new markets abroad?

Answer 3

Increase sales, revenue and profits

Increases potential customers

Question 4

What are the problems of entering new markets abroad?

Answer 4

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

Question 5

Name one example of a a method to overcome problems when entering a foreign market

Answer 5

Joint venture

Question 6

Ads + disads of joint venture

Answer 6

ads: Market and product knowledge can be shared to benefit of businesses
Market potential for businesses in joint venture is increased
Each business brings different expertise
Reduces risks and cuts costs
disads: Decision-making may be ineffective due to different business culture/ leadership styles
Any mistakes made will reflect on all parties, may damage their reputations

Question 7

The role of Place

Answer 7

affects whether or not consumer wants to go to shop, depends on how convenient it is to reach, how far away it is and how important it is to go there

Question 8

The role of Price

Answer 8

affects whether or not consumer will be willing to pay for product, if it is too cheap they may think product is dodgy

Question 9

The role of Promotion

Answer 9

affects whether or not consumer is aware of product and how many consumers are aware of product

Question 10

The role of Product

Answer 10

affects whether or not consumer wants to buy product, if it is not unique enough or not useful then consumers may not want to buy it