Marketing Strategy Quiz

What is a marketing strategy?

• A plan to increase production costs

• A plan to combine the right combination of the four elements of the marketing mix

• A plan to reduce sales in a niche market

• A plan to decrease market shares

What are some factors that affect the marketing strategy?

• Political affiliations

• Weather conditions

• Social media trends

• Legal Controls on Marketing

How can legal controls affect marketing decisions?

• By increasing sales

• By reducing competition

• By protecting consumers from faulty goods

• By promoting misleading information

What is one of the problems of entering foreign markets?

• High transport costs

• No cultural differences

• Lack of market knowledge

• Similar legal controls

What is a joint venture in the context of entering foreign markets?

• An agreement between two or more businesses to compete in the same market

• An agreement between two or more businesses to work together on a project

• An agreement between two or more businesses to merge into one entity

• An agreement between two or more businesses to dissolve their operations

What is an advantage of a joint venture?

• Increases risks and costs

• Reduces market potential

• Reduces risks and cuts costs

• Decreases market knowledge

What is a franchise/license in the context of business expansion?

• An agreement between two businesses to share profits

• An agreement between two businesses to compete in the same market

• An agreement between two businesses to dissolve their operations

• An agreement between the owner of a business and another person to use their business idea

What is an advantage to the franchisor in a franchise/license agreement?

• Loss of control over running of business

• No need to supply raw materials/products

• Profits have to be shared with franchisee

• Rapid, low cost method of business expansion

What is an advantage to the franchisee in a franchise/license agreement?

• Profits have to be shared with franchisor

• Cost of setting up business

• Franchisor will give technical and managerial support

• Working with an established brand means chance of business failing is low

What is a disadvantage to the franchisor in a franchise/license agreement?

• Franchisee will better understand the local tastes

• Franchisee will supply the raw materials/products

• Franchisee may not be as skilled

• Franchisee will run the operations