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3.4 Marketing strategy, image, str, image, image, image, image, image,…
3.4 Marketing strategy
3.4.3 Entering New Foreign Markets
Opportunities
growth potential, developing countries, rising incomes
wider choice of location to produce products, can sell and produce
easy & profitable to enter since trade barriers have been lowered
saturated home markets, give chance for higher sales for new markets
Problems
lack of knowledge
not aware of competitors or the consumers' habits
religions & cultural differences
e.g. no selling of alcohol in the Middle Eastern countries
exchange rate changes, unstable
price of imported goods change, may become expensive to sell
impact restrictions
tariffs(tax) or quotas(ltd qty set by government), prices may be higher than domestically produced products, sales & profits may decrease
increased risk of non-payment
different methods of payment may be more difficult
increased transport costs
long distances, increases costs
HOWEVER, may reduce transport costs by using large containers & ships
Solutions
Joint Ventures
get important local knowledge so customs & culture can be adapted
e.g. McD X 2 Indian restaurant chain (50%-50%)
Licensing
gives permission for other firms in new markets to produce the branded products under license
saves time, transport costs and can get round trade restrictions since products don't have to be physically transported
International Franchising
foreign franchises operate, local knowledge helps to choose best place
e.g. Dunkin' Donuts (US) sold franchise in the United Arab Emirates
Localizing Existing Brands
there's still common brand image but has adapted to local tastes & cultures
increase sales, e.g. McD created special menu that replaces beef which chicken in India
3.4.1 Justify Marketing Strategies Appropriate to a Given Situation
Factors
size of market
size & number of competitors
budget for promotion
stage of product life cycle
tastes & market changes
Importance of different elements of marketing that affects customers decision
Marketing strategy is a plan to combine the right combination with the 4ps
Place
Where would the shops be places?
Is it suitable for the target markets?
Products
Needs and Wants of the consumers
What type of product is consumer looking for?
Price
How much is the customer will be able to pay to that product?
Is it worth the price?
Promotion
-What type of promotion should be used to attract the consumer?
3.4.2 The Nature & Impact of Legal Controls Related to Marketing
UK
Weights & Measures
sell underweight goods or if the weighing equipment is inaccurate
Trade Descriptions
give a deliberately misleading impression about a product
Sales of Goods
sell products which has serious flaws/problems; doesn't fit the intended purpose
Supply of Goods & Services Act
a service has to be provided with reasonable skill & care
Pricing
misleading pricing claims
Safety
responsible for any damage which their faulty goods might cause; take supplier to court and ask for compensation
Distance Selling Regulations
cooling-off period of 7 working days for changing their mind
Pakistan
councils were set up in different regions to hear cases to decide who's at fault
e.g. overcharging, misleading statements (warranty issues, advertisements)
South Africa
have up to 6 months to return faulty / unsafe goods, choice of replacing/repairing/refunding
goods have to be delivered at an agreed time & place or else the consumers are free to accept or cancel the agreement
