Unit 17 : Marketing Strategy

Question 1

Define Marketing Strategy

Answer 1

a 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

What does Marketing Strategy Depend on?

Answer 2

size of market, number and size of competitors, marketing objectives, target market, finance available

Question 3

6 Marketing Objectives

Answer 3

1. increasing sales
2. improving the existing product
3. increasing sales of a new product
4. maintaining / increasing market share
5. increasing sales in a niche market
6. increase / retain market share

Question 4

Define Weights and Measure ( Legal Control )

Answer 4

selling underweight / using inaccurate equipment to weigh goods is illegal

Question 5

Define Sale of Goods ( Legal Control )

Answer 5

• supplying flawed / faulty goods
• product doesn’t fit intended purpose
• product doesn’t perform as described in label / by retailer

Question 6

Define Supply of Goods and Services Act ( Legal Control )

Answer 6

service should be provided with skill and care

Question 7

Define Consumer contracts Regulations ( Legal Control )

Answer 7

consumers get a minimum 7-day cooling period to change their minds about purchases

Question 8

Define Trade Descriptions ( Legal Controls )

Answer 8

• supplying a good / service that is unsafe / not fit for purpose is illegal
• giving false info / misleading claims is illegal

Question 9

3 Other Legal Controls

Answer 9

1. misleading consumers about the actual price is illegal
2. making false claims about special deals and offers is illegal
3. offensive or indecent ads are illegal

Question 10

6 Ways that Total Costs of A Business are raised when Complying with all Legal Controls

Answer 10

1. goods/ services may have to be redesigned to ensure quality and safety
2. ads may have to be altered
3. some promotion techniques may have to be changed
4. may have to change the packaging
5. prices may have to be controlled and altered
6. increase employment

Question 11

4 Opportunities of Entering New Markets Abroad

Answer 11

1. more growth potential in other countries as countries are developing and population incomes are increasing
2. markets in their original region may be saturated meaning sales are low
3. products can be produced abroad and businesses can also learn about it’s market to increase sales
4. trade barriers have been lowered in most countries, so it’s cheaper to enter markets

Question 12

6 Problems with Entering New Markets

Answer 12

1. lack of knowledge of competitors / consumer habits
2. region / culture could cause loss of sales of a certain country
3. exchange rate changes : some countries don’t have stable currencies so the price of imported goods increase
4. transport costs are expensive
5. import restrictions : causes price of goods to increase and sales to decrease
6. increased risk of non payment

Question 13

2 Ways to Overcome Lack of Knowledge / Cultural Differences and their Limitations

Answer 13

1. joint venture : working together / merging with local businesses in the same market can help a business gain the necessary knowledge about the culture and market. limitations : possible management conflicts between businesses and profit is shared
2. franchising : let’s people from the market abroad who have more local knowledge to choose location of shop. limitations : quality problems / poor service offered by franchises can damage brand image. training + support needs to be provided by the franchisor

Question 14

How to Overcome Expensive Transport Costs and it’s Limitations

Answer 14

licensing : the business gives permission to another company to sell goods under it’s name, so they don’t have to import all their products.
limitations : quality products by an inexperienced licensee can damage brand image. licensee also has access to how a product is made, they could develop a better version and become a competitor

Question 15

How to Overcome Cultural Differences and it’s Limitations

Answer 15

localizing existing brands: when a business has the same brand image but it adapts to the market it is in
limitations : might be less successful then a new product made to meet local cultures and market conditions. expensicve to change packaging, promotion, etc. for each market the product is sold in