Please enable JavaScript.
Coggle requires JavaScript to display documents.
chapter 16 and 17 - Coggle Diagram
chapter 16 and 17
Chapter 17: Marketing strategy
Marketing strategy
: is 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
Marketing objectives
Increasing sales by selling to new markets or selling more to the existing market
Increasing sales by improving it
Achieving a target market share with a newly launch product
Imcreasing market share
Maintaining market share if competition is increasing
Increasing sales in niche market
new markets in other countries
opportunities
markets in other countries might have greater growth potential
workers will have higher income
provides opputunities to enter new markets abroad
new markets give the chance for higher sales
more location to produce products
businesses will have more information about these markets
trade barriers have been lowerd in many parts of the world
problems
lack of knowledge: businesses may not be aware of comptitors or consumers' habits
cultural differences: products might be not suitable in other countries
exchnage rate changes: if exchange rate is unstable then imported products could be too expensive
import restrictions: if there are tariffs or quotas then businesses should rise their products' prices
increased risk of non-payment: it may be more difficult to make payment in other countries
increase transport cost: products have been travelled in long distance so transporting cost would increase
Importance of the marketing mix in influencing consumer decision
It is deliberately considered when developing a marketing strategy aimed at a specific target market. If the marketing strategy does not combine the elements of the marketing mix correctly then the marketing objectives will not be achieved
A product which meets customer needs and is priced at a suitable price which the target market is prepared to pay but potential consumers are not informed about it - promotion is ineffective
A product which does not meet the needs of the target market will not sell at any price, even if it is heavily advertised.
Legal controls on marketing
Forms of consumer protection
Weights and measures
Trade description
Sale of goods
Supply of Goods and Services Act
Misleading pricing
The Consumer Contracts Regulations
overcoming the problems of entering new amrkets abroud
joint ventures
advantages: businesses might know what the local want
limitations: management conflicts, profit shared
lecensing
advantages: save time and transport money
limitations: inexperienced licensee could damage the brand reputation, licensee would know how the products are made which could become new cpmpetitors in future
international franchsing
advantages: businesses will gain the local knowledge from other countries
limitations: franchisee could damge the brand image by poor services or quality, training and support will need to be provided by franchisor
localising existing brands
advantages: the products still have it's common image but have adapted to local tastes which will increase sales
limitations: may be less successful than a new product made to meet local cultures, expensive to change packaging, promotion, and so on
Chapter 16: technology and the marketing mix
E-commerce
opportunities of e-commerce to business
able to access many consumers
shops might not be needed
global coverage
low cost promotion
B2B easier
threats of e-commerce to business
no direct consumer contact
competition from other website
Setting up/updating website cost
transportation costs
opportunities of e-commerce to consumers
easy to pay
wider choice
easy to compare
competitive prices
convenience
threats of e-commerce to consumers
identity theft
technical problems
cannot see/ fell the products
no personal contact
internet access
How technology influences the marketing mix
presents new opportunities for the business to market their products
frequent changes to all four Ps
Product:
new features added to mobile
social media networking sites are changing the way businesses reach their potential customer
Promote:
social media marketing
viral marketing
Pricing:
allow the business to gather information about the purchasing habits
dynamic pricing can be used
increase revenue
change prices based on level of demands
Place:
online purchasing: e-commerce
Use of the internet and social media networks for promotion
Advertising on social medias
Advantages
targets specific demographic groups -> share the product's info through viral marketing
target customers who use social medias
speed in response to market change
cheap to use
reaches groups that are difficult to reach on other ways
Disadvantages
Alienate customers (finds the ads annoying)
have to pay if using pop-ups
lack of control
messages can be altered in bad ways
bad publicity
Advertising on own websites
Advantages
No extra cost
Control of advertising
Can change adverts quickly & update picture/prices
Interactive adverts can be more attractive
Can provide more information in adverts
Attracts funds/payments from companies that want to advertise/associated/linked with the website
Disadvantages
May not see the website since there are many results if search on Google
Relies on customer finding the website
Design cost may be high