<3.4 MARKETING STRATEGY>

• A MARKETING STRATEGY is essentially a firm's PREPLANNED DECISIONS regarding how they will COMBINE THE 4 ELEMENTS MARKETING MIX, in order to ACHIEVE their specific OBJECTIVE.

SCENARIO#1: A small business sells handmade soap and wants to attract more teenage customers:

• PRODUCT: Bright colors, fun scents, and skin-friendly ingredients (e.g., aloe vera, charcoal) will appeal to teens.

• PRICE: Affordable pricing is important — teens often have limited spending money. Use competitive pricing or discounts.

• PLACE: Products should be sold in popular teen hangouts (shopping malls) or online via platforms like Instagram or Shopee.

• PROMOTION: Use TikTok, Instagram Reels, and influencers. Offer discounts or bundle deals like “Buy 2 Get 1 Free.”

SCENARIO#2: Fitness App for Young Professionals

• PRODUCT: Customizable workouts, progress tracking, meal plans, integration with wearables.

• PRICE: Freemium model: free version + $5/month for premium features

• PLACE: Distributed via App Store, Google Play, and promoted through fitness blogs

• PROMOTION: Social media ads, influencer partnerships, 7-day free trial

Organic Baby Food Brand

Product 100% organic, no additives, tailored for babies’ age ranges

Price Slightly premium pricing to reflect quality and safety

Place Sold in organic supermarkets, pharmacies, and online stores

Promotion Parenting blogs, Instagram mummy influencers, free sample packs

3. Gaming Laptop for Teen Gamers

Product RGB keyboard, fast processor, high frame rate, sleek design

Price High-end pricing but bundled with discounts or free accessories

Place Tech retailers, online gaming forums, e-commerce platforms

Promotion Twitch streamers, YouTube reviewers, launch event livestreams

6. High-End Fashion Brand Targeting Celebrities and Influencers

Product Limited edition clothing lines, custom fittings, luxury packaging

Price Premium or prestige pricing

Place Flagship stores in fashion capitals, private showings

Promotion Exclusive events, red carpet placements, fashion magazine coverage

• ASYMMETRIC INFORMATION occurs when the SELLERS know more about the QUALITY of the product than the BUYER and therefore can mislead the buyer by withholding information, in addition for more technical products CONSUMERS OFTEN LACK THE TECHNICAL KNOWHOW in order to make an informed and accurate decision and again can be easily misled.

• Ask yourself: "I'm pretty sure you know the fair value of a bubble-tea by now but do you really have any idea about the value if this IGCSE or IBDP or even a University degree in the future? It it worth the money? How could you possibly know if you are getting value for money?

• When selling products ONLINE or through MAIL ORDER there are certain rules and regulations that MUST be adhered to by the merchant such as:

• A guarantee to deliver the goods within 30 days, unless you’ve agreed otherwise with the customer.

• The price, including all taxes, must be clearly given.

• You must tell the customer they can cancel their order up to 14 days after their order is delivered. They do not need to give a reason for canceling. 

• It is ILLEGAL for misleading pricing claims such as ‘£40 off for this week only’, when the product was also being sold for the same price the previous week. See TESCO WINES

• "Was $999, now $499", but the product was never actually sold at $999"

• "Buy on get one free", but the price of a unit was doubled.

• "72-Hour Flash Sale", but the sale isn't actually limited

• "Up to 70% off", but only a few low-demand items are discounted at 70%

• "Only 2 items left!", but this is a fake scarcity tactic and stock is plentiful

• Etc...

• Give an example of how the following THREE legal controls impact your school's promotional activities. I have done the first for you! 

  • • • • 1) MISLEADING PROMOTIONS 

          • • • • For example, it is illegal for our school can not use a misleading sales promotion such as "send one child and get the other free", if they simply doubled the price of the tuition.

        • 2) SALES OF GOODS ACT

        • 3) TRADE DESCRIPTIONS ACT.

• YMG Explain 3 opportunities and 3 problems that YMG must consider when entering a new market.

• A JOINT VENTURE  involves the creation of a NEW, INDEPENDENT ENTITY by TWO OR MORE FIRMS AGREE TO WORK TOGETHER TO ACCOMPLISH A SPECIFIC TASK, that acts independently from the parent companies.

• Each parent company owns a specific share of the new entity, and they share control and decision-making power based on their ownership percentages.

• (PP) Consider the advantages and disadvantages of the following  ways PP could start selling its products in country Z. Recommend which way PP should choose. Justify your answer. 1) FORM A JOINT VENTURE with a retailer in country Z, 2) LICENSING in country Z, 3) SELL ON-LINE to customers in country Z 

• QCH What is meant by a joint venture?

• QCH Identify and explain two reasons why QCH might want to enter new markets.

• YMG Explain how each of the following problems might affect YMG when entering new markets in other countries. 1. Problem caused by lack of local knowledge, 2. Problem caused by import quotas: 

• YMG Do you think a joint venture is the best way for a business to enter a new market in another country? Justify your answer.

• (ES) Explain how the following four legal controls may affect ES. 1) Control over misleading promotion, 2) Control over faulty products, 3) Control over location decisions, 4) Control over pollution.

• (PP) Consider the advantages and disadvantages of the following three ways PP could start selling its products in country Z. Recommend which way PP should choose. Justify your answer. 1) Form a joint venture with a retailer in country Z, 2) Sell to retailers in country Z, 3) Sell on-line to customers in country Z 

• (SC) Explain the following three factors SC will have to consider when marketing its products in foreign markets. Which factor do you think is the most important to achieve high export sales? Justify your answer. 1) Competition 2) Consumer needs, 3) Channels of distribution.

• (CC) CC’s bestselling product is a good quality camping cooker which is similar to those produced by competitors. Explain how each of the following three elements of the marketing mix could be used to market CC’s camping cooker. Justify why each element is important to the success of this product. 1) Price, 2) Promotion, 3) Place.