Chapter-14 Flashcards
Marketing strategy
What is a marketing strategy?
A marketing strategy is a plan to achieve the marketing objectives using a given level of resources.
What are legal controls?
Legal controls are laws that control the activity of businesses.
What are common legal controls on businesses that affect the marketing function?
1) Protect consumers from faulty and dangerous goods.
2) Prevent businesses from using advertising to mislead consumers.
3) Protect consumers from being exploited in industries with little or no competition.
What are barriers to trade?
Barriers to trade are usually taxes, quotas, or bans that one country places on the goods of other countries to prevent or increase the cost of them entering that country.
What are some problems of entering foreign markets for a business?
1) Differences in language and culture – Some words may not translate well, and cultural differences affect marketing and product appeal.
2) Economic differences – Consumer incomes vary, and export costs may make products more expensive in foreign markets.
3) Social differences – Age structures, family importance, and gender roles differ between countries, affecting demand.
4) Differences in legal controls – Each country has its own laws on consumer protection, requiring businesses to adjust products, packaging, or advertisements.
5) Lack of market knowledge – Businesses may not understand local consumer preferences, market size, competitors, or distribution channels.
What is a joint venture?
An agreement between two or more businesses to work together on a project.
What are the main reasons businesses enter into a joint venture?
1) Reduces risk and cuts costs – Sharing the financial and operational burden.
2) Each business brings different expertise – Leveraging each other’s strengths.
3) Increases market potential – Expands reach, especially across different regions or countries.
4) Market and product knowledge sharing – Businesses share insights for mutual benefit.
What are some limitations of joint ventures?
1) Shared mistakes affect all parties – Mistakes made by one partner can damage the reputation of all, even if they were not responsible.
2) Ineffective decision-making – Differences in business culture or leadership styles can lead to conflicts and inefficiencies in decision-making.
