Marketing strategies Chapter 7
KEY TERMS |
marketing aims: the broad, general goals of the marketing function within an organisation. marketing objectives: the specific, focused targets of the marketing function within an organisation. marketing strategies: long-term or mediumterm plans, devised at senior management level, and designed to achieve the firm’s marketing objectives. marketing tactics: short-term marketing measures adopted to meet the needs of a short-term threat or opportunity.
Understanding marketing objectives
This chapter notes how the marketing objectives of a business are derived from the broader corporate objectives. Examples of typical marketing objectives ...view middle of the document...
They change as a business develops. They also change in response to both internal and external circumstances.
Marketing strategies These strategies must assist the targets, e.g. to increase advertising expenditure on Brand X by 15%
Marketing tactics Detailed marketing department decisions will also be affected, e.g. the advertisements must be designed to appeal to the market segments that the firm is targeting
AQA A2 Business Studies
Understanding marketing objectives
This is not just a one-way process. Feedback from staff involved with organising the company’s marketing tactics will be used to advise the directors. Feedback from staff can help the senior managers or shareholders to agree more realistic objectives.
Types of marketing objective
Marketing objectives depend on the aims and priorities of an organisation. They can be categorised as follows.
Size can be measured by sales or market share. The objective may be expressed in terms of: s a specific level of sales volume (e.g. Nestlé trying to maintain KitKat’s sales volume of over 4 million bars every day) s a percentage rise in sales revenue (e.g. Vodafone trying to achieve an 8% rise in sales income in 2008) s a target percentage market share (e.g. BMW targeting a 6% market share of the UK car market in 2008; Nokia targeting a 40% market share of global sales of mobile phones for 2008) s market leadership or a certain position in the market (e.g. ASDA and Sainsbury’s both aiming to be the second largest supermarket in the UK) s an increased number of outlets (e.g. Shakeaway aiming to increase its number of shops by offering franchises in certain geographical areas)
This is concerned with a company’s appeal to particular market segments. For example: s rugby league trying to appeal to more market segments by targeting females, spreading its geographical base from its northern roots by awarding franchises to teams in London, Wales and France, and switching the playing season from the winter to the summer, arguably to avoid direct competition with the football season s Starbucks targeting younger age groups s Setanta bidding for a variety of football programmes, such as European leagues, selected Premiership games and Blue Square Premier league games in order to attract a particular market segment (young males)
Innovation/increase in product range
For example: s Ben and Jerry’s introducing unusual flavours and names of ice cream in order to maintain its reputation for individuality s ‘3’ trying to achieve 100% of its sales from third-generation products
Unit 3: Strategies for success
the BBC aiming to increase the availability of its TV and radio programmes through downloading via the internet Apple trying to integrate mobile communications more fully through the iPhone
Creation of brand loyalty/goodwill
For example: s McDonald’s aiming to maintain the golden...