Chapter 17 (Legal controls on marketing (Weights and measures (Retailers…
Legal controls on marketing
Weights and measures
Retailers and producers commit an offence if they sell underweight good or weighing equipment is incorrect or unaccurate
Sales of goods
Illegal to sell products which have serious flaws or problems or no a satisfactory quality
Supply of goods and service acts
A service must be provided with reasonable skills and cares
The consumers contract regulations
Allow customers a cooling-off period of 14 working days when products are not bought in a face-to-face situations
It is illegal tho give consumers a deliberately misleading impression about a product
Entering new market abroad
Increase risk of non-paymment
method of payment may be different means it is more difficult to ensure payment is made
Product have to travel longer distance thus transportation cost increase
Exchange rate changes
if exchange rate is not stable, price of product may become too high to sell
religion or culture means that product may not sell
Lack of knowledge
May not be aware of competitors or consumers habit
Wider choice of production location
Chance for higher sales
Greater growth potential
Lowered trade barriers
Methods to overcome
Licensing: The business gives permission
for another company in the new market
being enterd to produce the branded
or ‘patented’ product under license.
Quality problems caused by an inexperience licensee could damage bran reputation.
License now has access to the
information about how the product
is made - could develop a better
version and become competitor.
Localising existing brands: There is still a
common brand image for the business but
it has adapted to local tastes and culture,
therefore increasing sales.
May be less successful than a new product made to meet the local cultures and market location.
Expensive to change in packaging, promotion, and so on for each market the product is sold in.
International franchising: Foreign franchises are used to operate a business’s franchise abroad.
Quality problems or poor services offered by franchisees could damage brand image.
Training and support will nee to be provided by franchisor.
Joint venture: Two or more businesses
agree to start a project together, sharing
the capital, the risks and the profit.
Management conflicted between the 2 businesses.