Chapter 16: Marketing Strategy

Marketing Strategy: is a plan to combine the right combination of the elements of the
marketing mix for a product to reach the set marketing objectives.

What are the marketing objectives?

1. Maintaining market share (or increase)

2. Increase sales in the niche market
3. Increase sales of existing product (using extension strategy)
4. Improve brand Image

What are the factors that affect the marketing strategy?

Target Market:

1. Product
a. Is the product new and innovative or an existing one?
b. Does the product need to be changes to meet customer tastes?
c. What type of product does the target market like?
2. Price
a. What price will help cover unit cost?
b. What price does competitors have?
c. What price will the target customers be willing to pay?
3. Promotion:
a. What methods of promotion should be used to attract the target market?
b. What methods competitors use?
c. What budget is available for promotion?
4. Place
a. What channel of distribution should be used?
b. What channel of distribution competitors are using?
c. Where the target markets buy their products from?
d. What channel of distribution will help the target market get the product
quickly?

Legal Controls on Marketing:

Usually, there are various laws that can affect the marketing decisions of a business such as:

1. Laws that protect consumers from being sold faulty or dangerous goods.
2. Law that prevent the firms from using misleading information in advertisement
3. Laws that protect consumers from being exploited especially in monopolies
What is the strategy of entering new markets (other countries)?

Growing up in other countries (internal growth) will increase sales, revenue and profit.

Entering new markets (Market penetration) is usually used as an extension strategy or once
the product is already mature in the home market.

Problems of entering foreign markets:

1. Difference in laws and legal controls to protect consumers: As the new country might force
the business to spend more money on production or advertising in a way that complies with
the country's laws.

2. Difference in language and culture: it might be hard to connect or communicate with

people in other countries because of language barriers, culture difference, symbols, and
other traditions that should be taken into consideration

3. Economic differences: the costs and prices may be lower or higher in different countries so
it will be difficult for business to sell the product at lower price.

4. Social Differences: different people might have different needs and wants from people in
other countries, so the product might not be successful.

5. Lack of market knowledge: the business might not know much about the market it's
entering and the customers might not be familiar with the new brand, so to be well known it
might be expensive.

How to overcome such problems:

1. Joint Venture: an agreement between two or more businesses to work together on a

project.

2. Franchise: is a business base din a license between franchisor and franchisee, granting the
right to use the brand name, logo and trading systems.