Business Aims and Objectives and the Marketing Mix

by sheridanireland (student)

Sheridan Ireland

10th September

Aims and Objectives.

What are aims and objectives?

What defines an aim is a long term cooperate aim that an organization intends to achieve; it’s the overall purpose. For instance, a business may want to make additional income in comparison to the previous year. In addition to this corporate aim, a business might consider increasing their receipts by putting offers on specific products or advancing their promotion to inform their target audience and raise awareness and interest; this is considered to be the businesses objective.

Objectives are considered to be targets which help support the corporate aim and intend to help the business meet their corporate aim in the long run; they’re the outcomes needed in order to achieve the corporate aim. Business’ produce aims and objectives for a number of reasons, which may range from survival to growth.

A business objective is a detailed picture of a guide you plan to take in order to achieve a stated, long-term aim. A set of objectives for a smaller, newer business who desires to survive may be to create a regular customer base, gain a small share of a market, etc. in order to create additional profit/revenue that can be put into the capital to be used for advance the business. However for a bigger, existing organization this may be to provide a better service level in comparison to its competitors, to also gain a bigger market share, etc.

In relation to this, a new business will have only one essential short term strategic corporate aim which is to survive in the market. Additionally, the business will decide to generate objectives in order to meet its short term essential corporate aim. In addition to survival being the corporate aim, you might consider objectives such as generating profit or generating a positive net cash flow in order to produce receipts in the first few months. In order for this to occur, a business may consider the marketing activities of the business and inquire the marketing department to produce a cash flow graph or a break-even analysis to predict what will occur in the first month so that they’ll be prepared for the months to come and will be capable of preparing for them or even may help solve future problems.

However, for a business that has been existent for an excessive duration and has been trading for an elongated period, they will have a more complicated, specific and varied long term strategic corporate aims and objectives that they’d desire to meet. This may be to develop further in terms of revenue and profit over time or through market share, promotion, etc. More specifically, they may consider corporate aims such as profit maximization, to eliminate competition, to expand and diversify. In relation to profit maximization as a corporate aim; objectives such as employing additional workers who’re willing to work for elongated hours may be taken into consideration.

Whether you’re a new business or a business that has been existent for an excessive period of time, the objectives generated should be S.M.A.R.T objectives. Hence the acronym, your objectives should be specific, meaning that you’re stating exactly what your business is trying to achieve; they should be measureable, meaning that you’re capable of measuring what has been and what needs to be achieved; agreed, so that everyone’s approval has been taken into account and supports the objective; realistic, meaning that you’re taking into consideration the business’ resources, competition, etc.; and time specific, relationally meaning that your business should consider when these objectives should be achieved by.

Additionally, key themes should also be taken into consideration when wanting to produce corporate aims and objectives. In Relation to the key themes, you should make sure that you’re using a well-structured procedure for making good decisions so that there are no situations along the way of meeting your overall corporate aim. Furthermore, a business should understand and determine the criteria for making decisions in uncertain times, the accountability for decisions made facing uncertainty, and the heuristics and biases when making decisions. In addition to this, the business may want to produce a cash flow graph in order to help predict the outcomes of the corporate aims made by the business.

Corporate aims and objectives are considered to be beneficial as they’re helpful when a business is desired to survive, grow and make profit, which are the main aims that a business desires to exceed in. In relation to survival, regardless of the business’ status or dimension, survival will be considered whilst generating corporate aims and objectives because it’s the survival that maintains the business and needs to be taken into account at the early stages of trading, when the trading difficulty advances, and when there’s competitors who’re threats of taking over. Survival also allows the business to grow otherwise they may suffer a result in a loss of competitiveness. Additionally, when trading increases its difficulty, or when a competitor has more superior revenue, a business will consider generating aims and objectives in order to maintain their success.

The importance of aims and objectives:

It’s very essential to have aims simply for the reason that it provides a focus for the business, to observe what they are demanding to aim for; an aim highlights key areas of development and accomplishment.

Objectives are more specific than aims as they’re broken down so they’re easier to accomplish. An objective is a sub goal. It is a short-term, step within a period of time that is moving in the direction of achieving a long-term goal.

Without corporate aims and objectives, the business cannot survive in the long run considering the market changes and rivals advance ...

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Without corporate aims and objectives, the business cannot survive in the long run considering the market changes and rivals advance and multiply meaning that there’re situations that need to be taken into consideration and transformed and improve

What are marketing objectives?

Marketing objectives are typically qualitative and are supported by more measurable qualitative goals that a business should meet. Marketing objectives are specifically objectives relating to marketing activities which help support the main aim.

For example, is the aim of the business is to make a certain amount of profit over a long term period, the business will need the marketing department to cooperate and help achieve this. The marketing department can help the business achieve this by…

Promotion

Advertising

The importance of marketing objectives:

Once a business has set itself aims which it wants to achieve, it needs support from a variety of functional areas of which marketing is vital.

The marketing will tell people about the good things a business is doing and persuade then to buy or use it products or services. They can do this by,….

Discovering the particular needs of a consumer.

A consumer can be a person or an organization that purchases our products or services for personal use rather than manufacturing and reselling. A consumer has the power in order to take into consideration whether they want to purchase an item in the store. However they can be influenced by marketing and advertisements which may change their perspectives. Any time a person attends a shop in order to purchase a product, they’re making that decision as a consumer whether to purchase.

In addition to consumers, the consumers can convert into frequently attending customers if they’re fond with the servicing and the products from the business. It’s beneficial for the business to generate loyal and frequently attending customers as they’re less hesitant in comparison to new buyers about purchasing a new product generated by the business.

Why/how it’s important.

The main and most important reason at to why a business exists is to generate profit. The importance of a consumer is to purchase the product/service in order to generate and hopefully increase profit. Without consumers, there’s no reason as to why you should continue to run a business since no one is determined to purchase the goods/service. In addition, without consumers no market can exist. Furthermore the economy depends on customers to spend their money so the people who’re paid can become consumers as well.

What does the consumer wants/needs?

However good your product/service is, the simple truth is that no-one will purchase your product if they believe that they don’t need nor want it. And you will not persuade anyone that they want/need to purchase what you’re offering unless you clearly understand that it is what you’re customers really wanted.

What your consumer wants/needs all depends on who you’re targeting at. For instance if you’re targeting your products at teenagers, teenagers are fond of products and services that are more vigorous, energetic, enjoyable and imaginative rather than acknowledgeable and reasonable; this assumption is due to the majority of teenagers who would rather play games such as FIFA rather than revise. If you were to target your products at an older audience; the products need to be innovatively sensible, mature and acknowledgeable in comparison to a product produced for teenagers.

Whoever you’re targeting your audience at, there’s several needs and wants that all customers want and need. The first need and want that customers expect from products, mostly services, is friendliness. This can be anything from being greeted courteously and with warmth. In addition to friendliness, it’s also beneficial for the business as the consumer generates a positive perspective which increases consumer’s awareness of the product/service.

Furthermore, the consumer expects you to understand with empathy and appreciate their circumstances and feelings, without criticism/judgment, as to why they have come to you in the first place. This can generate and increase the consumers trust in your business and essentially rely on your products and services which can lead your consumer to become a repetitive and loyal customer.

Moreover in addition to the needs of a consumer; information is the most essential need and want that a consumer expects. Consumers are concerned about what the product or service is about, especially when they’re putting their own money into it. Information is also a great source that the business can use in order to persuade the consumer to purchase the product.

However, if the business requested more specific information about the consumers’ needs, they’ll use the method of primary and secondary research. In addition to primary research, primary research is generated by independently finding out information and resources. Additionally, communicating with a consumer using techniques such as

Talk about how they discover the needs of a customer (primary and secondary).

Secondary research.

(Similar products)

Secondary research can provide a business with an image of what kinds of new products and services may generate profit. For products and services that are already available, researching can inform companies whether they’re meeting their customers’ needs and expectations. By researching the answers to specific questions, small-business owners can acknowledge whether they’re in need of changing their packaging design or their delivery methods or even consider offering additional services.

Conclusion.

(Understanding the needs of a consumer; was it important?)

Talk about the marketing mix

Understanding and keeping ahead of competition.

- Definition of competition.

- Where may a competitor come from?

- Direct

- Indirect Tesco and M&S

- Substitute Nutella and marmite

- How can we find out what our competitors are doing?

- How can we stay ahead?

- How will it benefit us to stay ahead?

Any person which is a rival against another is referred to as a competitor. In the business industry, two companies that are in the same/similar industry which offer a similar product or service will compete for accomplishment, development and survival reasons. Additionally, the attendance of a competitor will cause both businesses to reconsider enhancing their marketing mix in order to overcome their competitors. This can involve changes such as decreasing the prices of goods and services as the companies both attempt to gain a larger market share by contacting the account department to find a suitable lowered price that will still gain the company profit but will eventually in the long run, open a wider market. Examples of direct competitors for fast-food restaurants may be McDonald’s and Burger King. These two large companies compete frequently by bringing out new and advanced products to gain a superior perspective in comparison to the other competitor and to increase its profit.

Competitors can approach from an identical market, selling the same products and services as you. These competitors are referred to as the direct competitors. Direct competitors may keep an eye on one another’s relative pricing and signification technological plans that may become a threat and put them at competitive disadvantage. An example of direct competitors that reduce their pricing of products in order to gain an advanced market are Dominos and Pizza hut; both companies provide the same products that satisfy the same needs for the same audience; constantly advertise offers, sales and lowered prices to win over the target audience they’re both aiming at.

The need to be innovative and enterprising when indentifying opportunities in the marketplace.

Definitions:

Innovation – A new method, idea or product. Innovating can involve ‘Ansoff’s matrix’ which examines a company’s product variety. There are four main options on developing new products and markets. The first example can be increasing the sales of the same types of product to the same types of customers – this is referred to as the market penetration. An example can be drinks such as Coca Cola or WKD who sell different sizes, flavors and ingredients (less sugar/fat) of the same product. You can also develop and advance relationships with regular, existing consumers to provide new and advanced products to suit the consumer’s needs – this is called product development. Product development is beneficial for both the consumers and the business because the consumers get to participate in producing a new product which will increase their expectations and needs; this benefits the company as it will increase the sales…..

Enterprise -

Opportunities in the marketplace -

If their products are innovative and enterprising, it will help them gain a competitive advantage.

Communicating effectively with consumers to satisfy their expectations;

Intro – Consumers (buyers/users/potential buyers and users of services and goods) and communication verbal/non-verbal/letter/electronic however it will cost time, people and resources, consumers will provide vital information (define).

It is essential that the business acquaintances with the consumers after they’ve purchased or at least experienced the business’ products and services. This is due to the circumstances that consumers are accomplished in providing fundamental and authoritative information that the business is required to distinguish and be considering. For an example, the business needs to take in consideration what the consumers presume and want from the business’ product or service and it’s indispensable that the business are acknowledgeable on this provided information so the business can advance on their overall appearance comprising the service and products, and to also upsurge their sales.

As soon as an individual is attends a shop, they’re denoted to be a consumer. A consumer is a potential buyer who’s willing to purchase particular reasons, the business’ products and services. A Consumer will require expectations that they assume the business will encounter. The business will take into consideration the consumers’ expectations and will aim to meet them. The consumers will generate perspectives that determine whether the consumer will transform into a remaining and constant attending consumer or an erstwhile consumer. The expectations and perspectives of a consumer will rely on the business’ product, services and the employee’s customer servicing.

In order for a business to increase their sales, improve their overall appearance and gain advanced perspectives of consumers in comparison to their competitors, they need to be able to contact previous consumers that have purchased or experience the products or service in the past. There are several ways in which a business can communicate with their consumers in order receive the consumers perspectives and advice. The cheapest and quickest way to communicate with a consumer is by email; emails are free and are received within a click of a button – the only thing that needs to be considered is the payment of the worker who’s writing the email. In addition there is a slight dilemma as you’ll need to contact the consumer first in order to receive their email address, which will mean verbally communicating with them in person.

Expectations – Customers and business.

(Customers want to pay as little for the best quality)

(Business’ want to earn more for what they’ve paid for and to receive more money for the products they’ve paid less for)

Methods of communication.

Cost/time v/s methods.

Conclusion.

Dealing with internal and external constraints that may hamper marketing activities.

Marketing activities such as generating a new and advanced product can corrupt due to certain constraints that may affect the process and hamper your marketing activities. Internal and external are the two constraints that are capable of hampering your marketing activities.

Internal constrains are corruptions occurring inside a business. They relate to the resource competencies of a business, for example financing – you may not having the money to pay bills, employees or to generate new products for expansion reasons.

In addition, whilst a business might be capable of identifying their potential consumers; they’ll have to take into consideration how they’ll meet the customers’ needs. The business may not have the resources to finance expansion in order to meet their aims of meeting their customers’ needs. When a company decides to generate a new and advanced product or services which they assume will meet the customers’ needs or provide a new service, they’ll need to finance expansion in order to generate these advanced long-term profitable products or services. Organizations will be expected to have the skills and knowledge for a range of marketing activities. In addition to the lack of resources to finance expansion for value-added products and services, certain employees will have the knowledge to know how they can solve financial problems such as buying in expertise from outside of the organization, or increasing receipts by investments such as a capital or an overdraft, however you’ll face consequences such as paying off debts from interest and banks.

External constrains are situations that hamper your marketing activities outside of a business. An example of this may be environmental constraints. There’s several important components of this environment with constrains the business’ activity. This includes things such as the actions of competitors; whether they’ve released a new and advanced product or have exposed themselves more frequently with additional and advanced advertising positions and durations.

In addition to the actions of competitors, this may hamper your marketing activities whether it is an aim to increase profits and sales or whether it’d be to expand your business. An employee or anyone who’s participating in the business will overcome their competitors and become ahead of them and their activities to protect and succeed in their business by either researching secondary information on similar successful business’ on how they’ve became successful, or to research and be informed on what their competitors are currently doing, making sure to not underestimate their competitors; they can use this information in order to provide them with an idea in order to generative a more advanced activity in comparison to the competitors.

In conclusion to the examples of internal and external constrains that hamper certain marketing activities, it’s essential for the marketing department to ensure that is has possibility and considered plans at the ready in order to deal with expected or unexpected problems which may occur. The marketing department is relied on to generate a contingency planning – bankrupt business’, ill unattended sales force are all related to the contingency planning, they’re things that can cause confusion and disorder if you haven’t prepared them properly.

The need for contingency planning emerges from a thorough analysis of the risks that your organization may face. It’s also helpful in considering advanced and ongoing projects: Plan ‘A’ is your first response to deal with an identified risk – and when Plan ‘A’ doesn’t go to plan; you use your contingency plan.

Understanding and keeping ahead of competition.

It’s essential for companies to generate the best profit and have the greatest customers in comparison to their competitors – this is the main reason for competition. Competition is identified in business as two or more organizations that are continuously battling against one another in order to have the best profit and consumers. Competition is essential and beneficial for both of the companies as it betters the company as the competition occurs. For an example, a company may have increased their profits due to the pressure of their competitors.

Competitors are split into two identities - direct and indirect. Indirect competitors are a company that do not sell the same products as their competitors, so they’ll not target the same audience, although may do in the future due to new product launched.

Direct competitors are contradicting against the indirect competitors – a direct competitor generates the same/similar products/servicing as their competition and sells them to the same target market. Sainsbury’s and Tesco’s are an example of direct competitors who sell similar food and groceries; however one company may familiarize sales to upsurge their revenue.

There are several techniques a business may use in order to upsurge its profits and the selling of their products. The business tends to use several methods due to the fact that if they did not, the single method they’re using may show to not be very dependable. Examples of methods a company may use may be the placement in big deals and sales to increase interest and profits from their target audience. In addition to this, they’ll then have more money to use on advertisement. Furthermore, this will increase awareness of the product so they sales will therefore attract customers again creating additional money for the business.

Marketing Mix.

The marketing mix is a business tool used in marketing; it’s crucial when determining a products offering because it determines the sales of the product. It consists of considering the product, price, place and promotion.

When you’re considering the product of a business, you’re essentially referring to the functions and the features of your product or service. Additionally, you have to consider how your product or servicing is effective bearing in mind of what its purposes are and the structure of your product that helps meet the satisfaction and the needs of the customer. More specially when referring to the satisfaction and the needs of a customer, whilst generating your product, it’s essential to have a unique selling proposition which helps separate your product from others making your product unique and contrasted. The unique selling proposition commonly includes its own image such as being sophisticated; this is what separates products from other products as well as the pricing and offering. Relating to the features and the functions of the product, the product also consists of a range of factors including: packaging, quality, warranties, after-sales service and branding. The packaging and the branding of the product relates to the features of your product or servicing which affects your consumer’s first perspective of your product; whether they find it appealing. The quality, warranties and the after-sales service is included in the functions which may affect your consumer’s perspective of after purchasing and the business itself.

Whilst generating your product, you’ll experience stages of processes that need to be taken into account. Whilst developing your product, you’ll experience having to pay high costs with no sales to pay your variable costs. The next process of launching your product is essential in order to pay your variable costs; the launching of your product determines how well your business will start off. However in order to progress and generate additional products/services and expand your business, the growth is essential. Additionally, the sales of your product should increase in order to make additional money in comparison to the launching and first months, and need to break-even in order to generate a positive cash-flow; meaning you’ll be able to cover your costs of the development of the product or servicing. The product tends to go into maturity mode meaning that there’s a suitable pricing and expenditure that still generates exceptional profit. More specifically, the sales stabilize, there’s less expenditure on promotional needs as additional people are aware of the product and the revenue and profit should be high due to the purchasing of the consumers. However maturity isn’t as beneficial as it occurs to be as without progress your products sales can decline. More specifically, with the decline of the sales, the extension strategies can be adopted. In addition to adopted extension strategies, they should maintain or increase sales as they include modifying the product, reducing the price to an exceptional amount however meaning that it may increase the consumer’s awareness, adds a feature so the business can meet the expectations more severely.