UNIT 3 - Chap 17: The Marketing strategy Flashcards
What are the 3 Legal Controls on marketing?
- Weights and measures act
- Trade Descriptions Act
- Sale of Goods
Explain what the weight and measure act is?
making sure the good is the correct weight/measurement
Explain what the trade description act is?
Making sure the product is correctly described e.g. the material/ the ingredients
Explain what the sales of good is?
Makes sure businesses are supplying goods that are not faulty and a are not dangerous. E.g., Electronics that are safe to use.
Why are laws put in place?
Laws are in place to make sure businesses do not falsely market a product e.g.
What are the 2 opportunities of entering new foreign markets? (2)
- More growth potential as have access to more customers in foreign markets e.g., Tiffany Jewellery opening in India
- Lack of knowledge of the foreign market e.g., which competitors there are and what customers in that country want
What are the 3 problems of entering new foreign markets? (3)
- Home markets might be saturated and so limited opportunities for growth
- Cultural differences- may mean product won’t be popular in other markets e.g., alcohol/pork/beef. May have to modify product which is expensive
- Transport Costs may be higher
What are the 4 methods to overcome problems of entering a new market? (4)
- Joint venture
- Licensing
- Franchising
- Localising existing brands
What is licensing?
Goods do not have to be physically transported to the new market which saves time and transport costs
What is the benefits of joint venture?
- Can gain important local knowledge about the culture in the country so they adapt the product
What is the benefits of licensing?
- Goods do not have to be physically transported to the new market which saves time and transport costs
What is the benefits of Franchising?
- Local knowledge is used to know where to place the store
What is the benefits of localising existing brands?
- Meets local customer needs increasing customer satisfaction
