Marketing Strategy (AL) Flashcards
Marketing plan
A detailed and researched report on the marketing objectives and the marketing strategy to achieve them
Contents of a marketing plan
-Purpose
-Situational analysis (SWOT,PEST)
-Marketing objectives
-Marketing strategy
-Marketing mix
-Marketing budget
-Summary and timescale
Benefits and limitations of marketing plan
Benefits
-Essential part of overall business
-Marketing plan reduces the risk of failure of strategies
-Planning marketing activités gives clear direction to departs in the business
Limitations
-Small business may not have skills to create a marketing plan
-Plan can be affected by sudden events
-Plan without adequate research leads to inappropriate strategies
International marketing
Selling products in markets other than the domestic market
Reasons for international marketing
-Saturated home markets
-Profit opportunities
-Spreading risks
-Legal differences creating opportunities abroad
Stages in decision making to enter potential markets
-Identify possible markets
-Screen potential markets(research)
-Select market to enter
-ENter markers
Pan global marketing with
benefits and limitations
Marketing a standardised product across the globe as if the world is on single market
Benefits
-Standard identity of the product can be established
-Economies of scales, reduction in costs
-Differences between consumers form different countries is reducing
Limitations
-Might be necessary to develop products suitable to culture
-Brand names may not always translate effectively into other languages
-Setting same prices for all countries will take not into account different average income levels
Global localization with
benefits and limitations
Adapting a marketing mix, including differentiated product and adjusting for national and regional tastes, maintaining differences
Benefits
-New marketing mix leads to high profits
-Products are likely to meet legal requirements
-Less opposition pressure to this MNC activity
Limitations
-Scope for economies of scale fall
-Brand could lose international identity
-Additional costs of adapting new products
IT applications in marketing
-Internet (websites)
-Email
-Mobile (texts)
-In store
-Social media
Potential AI applications in marketing
-Better understanding of consumer tastes
-Optimise effectiveness of digital advertising by analysing data
-Create detailed consumer profiles to personalise media message
Limitations of AI in marketing
-Significant investments in data collection
-AI systems lack creativity
-Management control and supervision are still required
Methods of entry to international markets
-Exporting products
-International franchise
-Joint ventures
-Licensing
-Direct investment in foreign subsidiaries
Direct exporting products
Benefits and limitations
Exporting is undertaken by selling directly to foreign customer
Benefits
-Business has complete control over international marketing
-No commissions from intermediaries raising profit margins
Limitations
-Business has to manage all logistics dealing with all paperwork
-Business may not have a agent, so there is lack of local knowledge
Indirect exporting
Benefits and limitations
Exporting is done through international trade agents or companies.
Benefits
-The business now has local knowledge which aids in the marketing of products
-Transport and all logistics are taken care of by the agent
Limitations
-Commission must be paid to the agent
-The intermediary may have competitors’ products to sell to and may not prioritize our business
Licensing
Benefits and limitations
Allowing other businesses to produce branded goods and patent products under license
Benefits
-Reduces transport costs
-Avoids capital costs of setting up own operations
Limitations
-Possible lapses in quality
-Business failure of Lincesee cutting costs and reducing income to the business
Direct investment in foreign subsidiaries
Benefits and limitations
Setting up wholly owned factories or retail operations in other countries
Benefits
-Uses decentralization encouraging local managers rather than joint ventures
-Foreign govt may provide grants for inward movements
Limitations
-Expensive, high set-up costs
-Decentralization may lead to decisions being taken that may ruin the business’s reputation
