Marketing Strategy Flashcards
Define Marketing Plan
A detailed and fullt written research report on the marketing objectives and the marketing strategy to be used to achieve them
What are the contents of a Marketing Plan?
- Mission of the business / Purpose of the plan
- Situational Analysis
- Marketing Objectives
- Marketing Strategy
- Marketing Budget
- Executive Summary / Time Frame
What are the benefits of a Marketing Plan?
- Reduces the risk of failure / difficulties [Efficient Allocation of Resources]
- A clear direction is given to different departments in the business [coordination]
What are the limitations of a Marketing Plan?
- Requires skilled expertise and time to draft
- The plan should be flexible and less complex because of the dynamic business enviornment
- It requires adequate research on customer preferences, otherwise strategies can be inappropriate
What are some evaluative points to consider about the importance of a Marketing Plan?
- Reduces business risk as it uses data driven research and forecasting to reduce uncertainty
- External factors can make the plan outdated - business environment should be considered
- Contingency plan incorporated with a marketing plan may be worthwhile if strategies fail
- Size of Business [ex. large businesses with multiple markets need more detailed plans]
- Risk of Over-reliance by managers [plan should only guide]
What are the approaches that need to be considered for an effective Marketing Strategy?
- Consistency
- Coordination
- Focus
What is Consistency refer to?
- The image of the business / brand identity [customer perceptions, avoid confusion]
- The nature of the market [mass or niche]
- The Product [Should be supported by relevant promotional methods]
What does Coordination Refer to?
A consistent message is communicated when the marketing mix is aligned and coordinated with the marketing objectives, and the promotional tactics are coordinated with the marketing budget
What does Focus refer to?
Marketing strategies should be specific and measureable on achieving marketing objectives
What is the benefits of IT in marketing?
- The internet and social media can be used to communicate and promote the product
- It can allow businesses to predict trends, understand customer behaviour and create personalised marketing campaigns
- It can aid customer loyalty through loyalty programmes, personalised email campaigns and discounts on repeat purchases
What are the limitations of IT in Marketing?
- High start up costs - CRM and IT tools require significant capital investment
- Employees need to be trained to develop the skills to run online campaigns etc.
- Risks of Data Breaches - may require protection systems
What are the benefits of AI in Marketing?
- Understand customer profiles through data analysis and cater specific messages / personalisation to customers preferences
- Optimise effectiveness of digital advertising campaigns by analysis consumer word searches / social profiles
What are the limitations of AI in marketing?
- It can lack human creativity and imagination
- Certain customers may be resistance to personal data collection - disadvantageous to data driven businesses [pressure group risk]
- Management supervision and control is needed
Define Free Trade Agreements
Agreements made between countries to reduce/eliminate trade barriers like tariffs and quotas
What is the impact of Globalisation on Businesses?
- Increased International Trade
- Increased movement of workers
- Growth of MNCs [freedom of capital investment]
What are the benefits of Globalisation?
- Greater oppurtunity for selling goods in different markets [home markets could be saturated]
- Can improve quality of goods at a lower cost by importing raw materials
- More oppurtunities for mergers, takeovers or joint ventures which make it easy for businesses to integrate into new markets
What are the limitations of Globalisation?
- Businesses need to alter their marketing strategies to cater to the differences in culture and customer preferences
- Anti-Globalisation pressure groups can impact MNCs due to cultural and environmental impact
- Domestic markets can suffer due to increased competition and wider consumer choice
- Businesses can lose their labour if MNCS provide higher pays / forced lower prices
What is International Marketing?
Selling products in markets other than a domestic market
Why may international marketing be important to businesses?
- Saturated home markets
- Profit motives
- Risk Spreading
- Poor trading conditions in the home market
- Legal differences in countries
Define Pan-Global Marketing
Marketing a standardised product across the globe as if the world was a single market
What are the benefits of Pan-Global Marketing?
- Can aid customer recognition as a standard identity is built
- Cost reductions can be substantial and economies of scale can be achieved
- Successful strategies aimed at the youth due to lesser differences between one another
What are the limitations of Pan-Global Marketing
- Culture and religious variations may still persist which needs some form of global localisation - this can affect sales
- Income levels may vary in different countries which requires effective pricing methods
- Brand names can be translated differently in certain countries which can act offensive [language]
- Legal restrictions in terms of promotion methods
What is Global Localisation?
Adapting the marketing mix, including product differentiation and national / regional cultures to maintain local differences
What are the benefits of Global Localisation?
- Culture and taste differences are taken into account which better caters the product
- Products are likely to meet local legal standards
- Less political and pressure group opposition through this kind of activity
What are the limitations of Global Localisation?
- The scope for economies of scale are reduced [high costs] - includes adapting products, store layouts etc. [might require higher prices]
- International brand could lose power if the local brand and identity becomes more popular
So, what should be taken into account when developing a global marketing strategy?
- Cultural Differences
- Legal Differences
- Economic and Social Differences
- Business Practice Differences
What are the methods of entry into International Markets?
- Exporting Directly / Indirectly
- Joint Ventures
- Licensing
- Foreign Franchising
- Direct Investment in Foreign Subsidaries
What are 2 benefits and 2 limitations of Exporting Directly?
Benefits
- The business has complete control over the marketing of the product
- No commission is taken by intermediaries, so profit margins can be higher
Limitations
- The business can lack local knowledge about import controls without an agent
- The business will need dedicated sales personnel and logisitics of distrubution to deal with international customers
What are 2 benefits and 2 limitations of Exporting Indirectly?
Benefits
- Transport and administrative costs are handled by the agency
- Fewer employees are required/involved in the sales process which can reduce costs
Limitations
- The intermediary may have other products to sell from competitors which can reduce prioritisation and effort
- Commissions are required to be paid
What are 2 benefits and 2 limitations of Joint Ventures?
Benefits
- Shared Risks and Investments which reduces financial burden
- Expertise and knowledge can be learned navigating cultural differences
Limitations
- Cultural and Operational Differences can create conflicts and ineffiencies
- Limited authority over decision making
What are 2 benefits and 2 limitations of Licensing?
Benefits
- Goods do not required to be physically exported which saves selling and distrubution costs
- Large capital costs of start up are avoided
Limitations
- Unethical production methods used by the licensee can damage reputation of the brand
- Possible lapses in quality / cost cutting from the licensee
What are 2 benefits and 2 limitations of Foreign Franchising?
Benefits
- Costs of national advertisements / training are saved
- Leverages local entrepreneural expertise
Limitations
- Culturals misalignments can still occur - i.e strict production guidelines can affect local markets creating conflicts
- Risk of brand dilution if the Franchisee performs poorly
What are 2 benefits and 2 limitations of Direct Investment in Foreign Subsidaries?
Benefits
- All profits after tax belong to the company
- The government could provide financial support to encourage inward investment
Limitations
- Very high capital costs to set up operations
- Can be subject to certain government policies which can create risks of shutting down
