Chapter 17 Marketing strategy Flashcards
What is marketing strat
plan to combine the right combination of the four
elements of the marketing mix for a product or service
to achieve a particular marketing objective(s).
What are some marketing objectives
» increasing sales of an existing product/service by selling to new markets or selling more to the existing market
» increasing sales of a product or service by improving it
» achieving a target market share with a newly launched product
» increasing market share
» maintaining market share if competition is increasing
» increasing sales in a niche market.
Explain the imp of price
What price will the target customers be willing to pay? What price do competitors charge?
What are the legal controls on marketing
explain each
Weight and measures - Can’t sell underweight goods
Trade descriptions - can’t give misleading impression about a product
Sale of goods - It is illegal to sell: products which have serious flaws or problems, that is they are not of a satisfactory quality
Supply of goods and services act - This Act does the same for services as the Sale of Goods Act does for products.
Cant make misleading price claims
Consumer contract regulations - Consumers are allowed to return the product within 14 days.
Pros of entering a foreign market
Pros:
Might have much greater growth potential
There is a wider choice of location to produce products
Home markets might be statured - allows for higher sales
Trade barriers reduced in most parts of the world - easy and profitable to enter new countries
How to tackle problems of entering a foreign market
just list
Joint ventures
Licensing
International franchising
Localising existing brands
What is a joint venture
limitations
Two or more companies agree to form a new child company together.
Cons:
Management conflict between the two businesses
• Profits shared.
What is licensing
cons?
this is where the business gives permission for another company in the new market being entered to produce the branded or ‘patented’ products under license.
Cons:
Quality problems caused by an inexperienced licensee could damage brand reputation.
• Licensee now has access to information about how the product is made – could develop a better version and become a competitor.
What is international franchising
limitations
this means that foreign franchises are used to operate
a business’s franchise abroad
Cons:
Quality problems or poor service offered by franchisees could damage brand image.
• Training and support will need to be provided by franchisor - additional cost
What is Localising existing brands
Limitations
It means that there is still a common brand image for the business but it has adapted to local tastes and culture, therefore increasing sales.
Limitations
May be less successful than a new product made to meet local cultures and market conditions
Explain the imp of place
Where does the target market buy its products?
Where should the product be sold?
What channels of distribution should be used?
What channels of distribution do competitors use?
Explain the imp of promotion
What methods of promotion should be used
to attract the target market?
What methods do competitors use?
What budget is available for promotion?
Explain the imp of product
Is the product new and innovative or an existing product?
What type of product does the target market like?
Does the product need to be changed to meet consumer tastes?
Cons of entering a foreign market
Lack of knowledge - may not know enough about the habits of customers and competitors of that market
Cultural differences - religion or culture may mean that some products won’t sell in another market
Increased sick of non-payment - Diff in methods of payment may lead to non-payment
Increased transportation costs - Products have to be transported over long distances and the cost of production will increase.
