Page 192 - Cambridge IGCSE Business Studies

14 Marketing strategy

Introduction

We have looked at how marketing decisions are based on the four parts of the
Objectives marketing mix. But marketing decisions are not taken separately for product, price,
promotion or place. In this chapter you are going to learn how businesses combine
In this chapter you will the four marketing decisions into a marketing strategy.
learn about:

■ marketing strategies
■ legal controls on marketing
strategy
■ opportunities and problems price
entering foreign markets. product

promotion
place

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Figure 14.1 A combined marketing mix
KEY TERM
Choosing a marketing strategy
Marketing strategy: a plan to

achieve the marketing objectives A business produces a marketing strategy only after careful market research.
using a given level of resources. The marketing strategy also contains details of the marketing budget.

The marketing mix and consumer decisions
If a marketing strategy is to achieve a business’s marketing objectives, then
marketing decisions about product, price, promotion and place must be linked.

Marketing budget: This does not mean that each part of the marketing mix is of equal importance.

see Chapter 13, page 185. How important each part of the marketing mix is in influencing consumers varies
depending on the situation.

ACTIVITY 14.1

Consider the following situations.
Situation A
The market for hair shampoo is very competitive. Most manufacturers’ products are available in supermarkets. The prices of
shampoo from the leading brands are very similar.
Situation B
A man is looking to purchase a piece of jewellery for his wife’s birthday. He wants to buy something which is
‘a little different’ from the jewellery items he has seen in some of the larger jewellery retail outlets.