CHAPTER 16

Define marketing strategy

A plan to acheine the marketing objectives of a business using a given level of resources

How do you decide your market strategy?

The marketing budget available. Stage of product in the life cycle, level of competition in the market, characteristics of the target market

What are the legal controls and its effects on a business

Advertising must not mislead consumers - advertisements may have to be withdrawn and redesigned, may be required to advertise product again, may be fined for misleading consumers

Faulty goods must not be sold - products may need to be changed to meet minimum quality standards. Wine increase costs

Consumers must not be exploited in a market where there is little to no competition - anti-trust and competition laws, exploiting by charging high prices or providing low quality goods , can decrease brand image and potentially reduce sales

What are the advantages of entering new markets in different countries?

opportunity for increased sales which cand increase revenue

Spread risk, business not relying on one country or market for sales

Reduced barriers to entry

Disadvantages of entering new markets in other countries:

Cultural differences - language dress attire, food, values

Differences in legal controls to protect consumers - changes lead to more costs

Lack of market knowledge - business does not know market, the market does not know about the business