SSCE HSC Business Studies Influences on marketing: What are TWO consequences of a b

What are TWO consequences of a business using a standardised marketing strategy when operating globally? (A) Increased economies of scale and reduced market segments (B) Reduced economies of scale and increased market segments (C) Complex after-sales service and reduced research and development costs (D) Simplified after-sales service and increased research and development costs - HSC - SSCE Business Studies - Question 13 - 2010 - Paper 1

Question 13

What are TWO consequences of a business using a standardised marketing strategy when operating globally? (A) Increased economies of scale and reduced market segment... show full transcript

Worked Solution & Example Answer:What are TWO consequences of a business using a standardised marketing strategy when operating globally? (A) Increased economies of scale and reduced market segments (B) Reduced economies of scale and increased market segments (C) Complex after-sales service and reduced research and development costs (D) Simplified after-sales service and increased research and development costs - HSC - SSCE Business Studies - Question 13 - 2010 - Paper 1

Step 1

A) Increased economies of scale and reduced market segments

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Answer

Using a standardised marketing strategy typically leads to increased economies of scale, as businesses can produce on a larger scale due to uniform products. However, this approach may limit the market segments targeted, potentially missing local opportunities.

Step 2

B) Reduced economies of scale and increased market segments

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Answer

This option is generally incorrect. A standardised strategy usually does not reduce economies of scale; instead, it consolidates production and marketing efforts across markets.

Step 3

C) Complex after-sales service and reduced research and development costs

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Answer

This option is less likely. Although standardisation can simplify certain processes, it may also complicate after-sales service due to varying customer needs across different regions.

Step 4

D) Simplified after-sales service and increased research and development costs

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Answer

This is a valid consequence. A standardised marketing strategy can lead to simplified after-sales service since products are uniform. However, there may be increased research and development costs to ensure products meet global standards.

A) Increased economies of scale and reduced market segments

B) Reduced economies of scale and increased market segments

C) Complex after-sales service and reduced research and development costs

D) Simplified after-sales service and increased research and development costs

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