Chapter 17 - Marketing Strategy

Question 1

Marketing strategy

Answer 1

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

Question 2

Importance of different elements of the marketing mix in influencing consumer decisions

Answer 2

Has to be a good product with a reasonable price, promotional packaging available at a conviennent place for customers

Question 3

What to consider when recommending a marketing strategy (4)

Answer 3

Marketing objectives
Marketing budget
Target market
Balanced marketing mix

Question 4

Legal controls on marketing (6)

Answer 4

Weights + measures (if inaccurate)
Trade descriptions (misleading descriptions)
Sale of goods (can’t sell with serious flaws)
Supply of goods and services act (service must be provided with skill + care)
Illegal to make misleading pricing claims
Consumer contracts regulations (return products basically, 14 working days cooling period)

Question 5

Opportunity in entering new markets (4)

Answer 5

More growth potential
Home markets are saturated - new markets give chance for higher sales
Wider choice of location-encourages businesses to produce and sell in the countries
Trade barriers have been lowered - more profitable to enter the markets

Question 6

Problems of entering foreign markets (6)

Answer 6

Lack of knowledge
Cultural differences
Exchange rate changes
Import restrictions
Increased risk of mom payment
Increased transport costs

Question 7

Methods to overcome problems of entering new markets abroad (4)

Answer 7

Joint ventures
Licensing
International franchising
Localising existing brands

Question 8

Benefits of joint ventures when entering foreign markets (1)
Drawbacks (2)

Answer 8

Allows the business to gain local knowledge which spreads risks\

Management conflicts
Profits shared

Question 9

Benefits of licensing when entering foreign markets (1)
Drawbacks (2)

Answer 9

Permission to produce branded products under a license, products don’t have to be transported which saves time and money

Quality problems caused by inexperienced licensers damages brand reputation
Licensee has access to info about how the product is made - could become a competitor

Question 10

Benefits of international franchising when entering foreign markets (1)
Drawbacks (2)

Answer 10

Local knowledge

Quality problems could damage brand image
Training + support need to be provided by franchisor

Question 11

Benefits of localising existing brands when entering foreign markets (1)
Drawbacks (2)

Answer 11

Common brand image adapted to local tastes which increases sales

May be less successful than a new product
Expensive to change packaging, promotion etc. For each market