Transcript 1.1.1-Introduction

Starter
 What is marketing?
Task: In pairs, mind map what you
think marketing involves.
?
?
Marketing
?
?
Objectives
 To understand the concept of Marketing
 To understand and identify marketing objectives
 To apply marketing objectives to a given businesses
Marketing
 Marketing is the management process responsible for identifying, anticipating
and satisfying customer requirements profitability.
 Chartered Institute of Marketing (CIM) definition
 It is about more than just advertising
 Marketing involves a range of activities including:
– Market research
– Setting prices
– Designing and using promotion methods, including advertising
– Designing the product and packaging
– Deciding where to sell the goods/services
– Managing distribution channels
– Customer service and communicating with customers
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– The method of selling the good/service
Purposes of marketing
As described in the definition, marketing has three main
purposes:
1.
Anticipating consumers’ wants
2. Satisfying customers’ wants
3. Meeting the needs of the business
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The value of setting marketing
objectives
 Businesses must set marketing objectives to determine what they must do
in their marketing strategy to help achieve their overall company objectives.
 Marketing objectives: The specific goals/targets of the marketing
department. They must be in line with the firm’s overall corporate
objectives.
Discuss potential examples of marketing objectives a firm may set.
Increase sales volume and sales value
Brand image and awareness
Market and sales growth
Increase market share
Build brand loyalty
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What are the similarities
and differences between
these 2 markets?
What do you think are the marketing objectives of
these two businesses?
Marketing Objectives
 Marketing objectives are likely to be informed by research and
potentially constrained by budgets
 They will be used to select the marketing strategy and develop a
marketing plan
 Marketing objectives may focus on:
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Sales volume and value
Market size
Market and sales growth
Market share
Brand loyalty
Marketing objectives
Would it be
possible for a
business to set
an objective to
increase sales
value whilst
reducing sales
volume?
 Sales volume and sales value
 Sales volume is the amount of sales expressed
as a number of units sold
 e.g. 20 tonnes of wool
 Sales value is the amount of sales expressed as
the total sum of money spent by consumers
 e.g. £3 million expenditure on clothing
With reference to the supermarket and retail
industries explain what is meant by the terms sales
volume and sales value.
Marketing objectives
 Market size is the total sales value or sales volume
in a given market
 Market size can be calculated as:
 Number of units sold x price
 e.g. If there are 2 million cars sold at an average
price of £15 000 then the market size is (2 million x
£15 000) £30 billion
Marketing objectives
 Market and sales growth is the percentage
increase in the size of the market by value or
volume over a period of time
 Growth can be calculated as:
 Change in size of market/original size x100
 e.g. If the fashion market grows from £30 billion to
£33 billion it has grown by (£3 billion /£30 billion) x
100) 10%
What is the growth in the automotive industry forecast
to be between 2012 and 2017?
Marketing objectives
 Market share is the proportion of total market sales
that a firm has
 Market share can be calculated as:
 Business A sales/market sales x 100
Analyse the benefits to a firm
such as Facebook of increasing
market share.
Why might any business set an
objective of maintaining or
increasing market share?
Marketing objectives
 Brand loyalty exists when customers keep returning to buy a
recognised brand
 Branding is a promotional method that involves the creation
of an identity for a business that distinguishes it and its
products from competitors
In pairs
Mondelez wins with share bags but Mars
suffers after downsizing
 Prepare a short presentation about the
confectionery market
 Show your understanding of all the
terminology covered under marketing
objectives
Activity
EasyGym is run in the same way as EasyJet. Customers are offered
a very basic, low-cost service at a very low price. EasyGym is an
example of how much an organisation’s corporate aims can limit its
scope for marketing strategies. Its philosophy is based on
minimising costs through eliminating unnecessary expenditure.
This allows the firm to charge low prices to customers. Marketing
costs must also be minimised. Ryanair and Primark are companies
that operate on a similar philosophy.
1.
2.
Select two marketing objectives that you believe would be
unsuitable for budget companies such as Easy jet/Ryanair.
Explain why you believe this.
Select three marketing objectives that you believe would be
suitable for budget companies such as Easy jet/Ryanair. Explain
why you believe this.
Internal Influences on Marketing
objectives
Why would a
business want to
plot marketing
expenditure
against sales?
What would you
expect the
correlation to
be?
 Finance
 Marketing budget
 Cash flow targets
 Timing and quantity of sales
 Return on investment targets
 Revenue is generated through marketing activities
 HR
 Will marketing activities lead to more
customers?
 Are staff trained to respond to marketing
activities?
 Keeping staff informed
Internal Influences on Marketing
objectives
Why is it
important for
the marketing
function to
understand
capacity
utilisation?
 Operational issues
 Ability to meet demand
 Little point in generating increased demand if
stocks are not available
 Implementation of marketing decisions
 Ability to physically produce a new or changed
product
 Logistics of a new market
 Distribution and stock issues
 Corporate objectives
 Always the driving force behind other functional
objectives
External Influences on Marketing
objectives
 Competitors’ actions
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Marketing budget
Promotional activities
Pricing policies
Product development
Aggressive marketing
 Market factors
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Degree and relative power of competitors
Social factors
Legislation
Demographics
External Influences on Marketing
objectives
 Technological change
How have
ethical and
environmental
influences
impacted on the
marketing
objectives of
Nestle?
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E commerce
Digital marketing
Social media
Global markets
Production capabilities
 Ethical and environmental influences
 Consumers’ expectations
 Pressure groups
Marketing objectives: Group activity
In pairs you must decide on a new company. Some ideas could include,
a T-shirt or clothes brand, mobile phone and tablet or PC firm, drinks
company, etc.
Group tasks:
1. Decide on a brand name and company type.
2. Who would your main rivals be?
3. Decide who the target audience would be and why
4. What would your marketing objectives be? Set at least 5.
5. What marketing methods would you use to reach and appeal to
your target audience and establish brand loyalty?
Research task: Research online the cost of retaining customers
compared with attracting new customers.