38A. Contract manufacturing, using a trading company and franchising provides less marketing control, whereas, joint venture is a form of direct investment. Licensing is the best strategy to keep the maximum control over marketing activities. Licensing is a method of entering a foreign market in which the company enters into a contractual agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademarks, patent, trade secret or other item of value for a free or royalty. Having a product that meets the needs of consumers may be of little value if they are unable to purchase it. A consumer's ability to buy is specifically related to disposable income.
Disposable income is the money a consumer has left after paying taxes.
This remaining income is used to spend on food, shelter and clothing as well as other necessities. 40C. Discretionary income is the money that remains after paying for taxes and purchasing necessities. It is often used for luxury items. As a product passes through its product life cycle, the marketing mix variable will need to be strategized differently at different stages. Trucks can drop a package off directly to a business or residence.