What is marketing? Task: In pairs, mind map what you think marketing involves. Starter Marketing ????

What is marketing?Task: In pairs, mind map what you think marketing involves.

Starter

Marketing

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To understand the concept of Marketing To understand and identify marketing

objectives To apply marketing objectives to a given

businesses

Objectives

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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– The method of selling the good/service

Marketing

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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

Purposes of marketing

5

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.

The value of setting marketing objectives

Increase sales volume and sales value

Brand image and awareness

Market and sales growth

Increase market share

Build brand loyalty

What are the similarities and

differences between these 2 markets?

What do you think are the marketing objectives of these two businesses?

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: Sales volume and value Market size Market and sales growth Market share Brand loyalty

Marketing Objectives

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

Marketing objectives

With reference to the supermarket and retail industries explain what is meant by the terms

sales volume and sales value.

Would it be possible for a business to set an

objective to increase

sales value whilst

reducing sales

volume?

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%

Marketing objectives

What is the growth in the automotive industry forecast to be between 2012 and 2017?

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

Marketing objectives

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

Prepare a short presentation about the confectionery market

Show your understanding of all the terminology covered under marketing objectives

In pairs

Mondelez wins with share bags but Mars suffers after downsizing

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. Select two marketing objectives that you believe would be unsuitable for budget companies such as Easy jet/Ryanair. Explain why you believe this.

2. Select three marketing objectives that you believe would be suitable for budget companies such as Easy jet/Ryanair. Explain why you believe this.

Activity

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 would a business want

to plot marketing

expenditure against sales?

What would you expect

the correlation to

be?

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

Internal Influences on Marketing objectives

Why is it important for the marketing function to understand capacity utilisation?

Competitors’ actions Marketing budget Promotional activities Pricing policies Product development Aggressive marketing

Market factors Degree and relative power of competitors Social factors Legislation Demographics

External Influences on Marketing objectives

Technological change E commerce Digital marketing Social media Global markets Production capabilities

Ethical and environmental influences Consumers’ expectations Pressure groups

External Influences on Marketing objectives

How have ethical and

environmental influences impacted on

the marketing

objectives of Nestle?

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 why4. 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.

Marketing objectives: Group activity