Unit 17 : Marketing Strategy Flashcards
Define Marketing Strategy
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
What does Marketing Strategy Depend on?
size of market, number and size of competitors, marketing objectives, target market, finance available
6 Marketing Objectives
- increasing sales
- improving the existing product
- increasing sales of a new product
- maintaining / increasing market share
- increasing sales in a niche market
- increase / retain market share
Define Weights and Measure ( Legal Control )
selling underweight / using inaccurate equipment to weigh goods is illegal
Define Sale of Goods ( Legal Control )
- supplying flawed / faulty goods
- product doesn’t fit intended purpose
- product doesn’t perform as described in label / by retailer
Define Supply of Goods and Services Act ( Legal Control )
service should be provided with skill and care
Define Consumer contracts Regulations ( Legal Control )
consumers get a minimum 7-day cooling period to change their minds about purchases
Define Trade Descriptions ( Legal Controls )
- supplying a good / service that is unsafe / not fit for purpose is illegal
- giving false info / misleading claims is illegal
3 Other Legal Controls
- misleading consumers about the actual price is illegal
- making false claims about special deals and offers is illegal
- offensive or indecent ads are illegal
6 Ways that Total Costs of A Business are raised when Complying with all Legal Controls
- goods/ services may have to be redesigned to ensure quality and safety
- ads may have to be altered
- some promotion techniques may have to be changed
- may have to change the packaging
- prices may have to be controlled and altered
- increase employment
4 Opportunities of Entering New Markets Abroad
- more growth potential in other countries as countries are developing and population incomes are increasing
- markets in their original region may be saturated meaning sales are low
- products can be produced abroad and businesses can also learn about it’s market to increase sales
- trade barriers have been lowered in most countries, so it’s cheaper to enter markets
6 Problems with Entering New Markets
- lack of knowledge of competitors / consumer habits
- region / culture could cause loss of sales of a certain country
- exchange rate changes : some countries don’t have stable currencies so the price of imported goods increase
- transport costs are expensive
- import restrictions : causes price of goods to increase and sales to decrease
- increased risk of non payment
2 Ways to Overcome Lack of Knowledge / Cultural Differences and their Limitations
- 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
- 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
How to Overcome Expensive Transport Costs and it’s Limitations
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
How to Overcome Cultural Differences and it’s Limitations
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
