Marketing strategy

Business A2 · Marketing. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.

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The idea

A marketing plan sets out the marketing objectives, the resources available (budget, staff, time), the market research behind it and the marketing mix to be used. It gives direction and targets to measure against, but it takes time and can go out of date quickly.

A marketing strategy must be consistent with the business's objectives, the product and the market, and it must be coordinated: product, price, promotion and place all send the same message. IT and AI let firms analyse customer data and personalise offers, with privacy as the risk.

Globalisation brings more competition at home and more chances abroad. A firm must choose which markets to enter, how, and whether to sell the same way everywhere (pan-global marketing) or adapt to each country.

Rules to remember

Contents of a marketing plan: objectives, resources, research, marketing mix.
Coordinated marketing mix: every element supports the same image, e.g. premium product, high price, selective outlets, promotion that stresses quality.
Reasons to sell abroad: a saturated or small home market, higher sales and economies of scale, spreading risk across markets.
Selecting a market: size and growth, competition, incomes, legal and political conditions, cultural fit, cost of entry.
Methods of entry, from low risk and low control to high risk and high control: exporting (directly or through an agent), licensing, franchising, joint venture, direct investment in a wholly owned subsidiary.
Pan-global marketing = one standardised product and marketing mix for all countries: economies of scale and one brand image, but it may ignore local tastes, laws and culture.
Maintaining local differences = adapting the product and the mix to each country: a better fit with local needs, but higher costs.

Common mistake

Students recommend a method of entry without using the facts of the case. Match the method to how much risk, money and control the firm wants: uncertain or small sales point to exporting or licensing, and only large, secure sales justify building a factory abroad.

Worked example

A restaurant chain with a strong brand wants to open in ten countries within three years. It has little capital to invest, but it wants every outlet to use its name, menu and methods. Which method of entry is most suitable?

Little capital and a fast timetable rule out building wholly owned restaurants in ten countries.
Exporting is not possible, because a restaurant service must be produced where the customer is.
Franchising lets local owners pay for and run the outlets, while the contract makes them use the chain's name, menu and methods.

Answer: Franchising: fast growth with little capital, and the brand stays standard, though the chain shares the profit and must monitor quality.

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