Chapter 17-marketing Strategy Flashcards
Define Marketing strategy
A plan to combine the right combination of all 4 elements of the marketing mix for a product or service to achieve a particular marketing objective
Give 3 marketing objectives
-increasing sales of an existing product/service by using extension strategies
-increasing market share
-maintaining market share if competition is increasing
What are the factors that affect the marketing strategy
place
-where should the product be sold?
-Distribution channels used by competitors and which ones to use?
-where does the target market buy its product
product
-what type of product does the target market like
-is the product new or an existing product
-does the product need to be changed to meet consumer tastes
promotion
-what methods do competitors use?
-what budget is available for promotion?
-what promotion methods should be used to attract the target market?
price
-what price do competitors charge
-what price will the target customers be willing to pay
Give 3 legal controls on marketing?
-laws that affect the marketing decisions on quality, price and the contents of advertisements
-laws that protect consumers from being sold faulty and dangerous goods
-laws that prevent the firms from using misleading information in advertising
-laws that protect consumers from being exploited in industries where there is little or no competition known as monopolising
problems of entering foreign markets
-difference in language and culture-it may be difficult to communicate with people in other countries because of language barriers
-lack of market knowledge-customers won’t be familiar with the new business brand and so getting established in new markets will be difficult and expensive
-economic differences-cost and prices maybe be lower or higher in different countries so business may not be able to sell the product at the price which will given them a profit
-increased transport costs
-social differences-different people will have different needs and wants from people in other countries, and so the product may not be successful in all countries.
-difference in legal controls to protect consumers-the business may have to spend more money on producing the products in a way that complies with that country’s laws
Growth potential/opportunities of entering foreign markets
-markets in other countries might have much greater growth potential than existing markets-giving the chance for higher sales
-wider choice of location to produce products and this encourages businesses to sell as well as they produce
-trade barriers have been lowered in many parts of the world, making it easier and more profitable to enter markets
how to overcome the problems of entering new markets abroad
