Unit 1 – Marketing: A01
Task 1 – Marketing objectives
Marketing objectives are important to all business in order to be successful. Business must know what the consumers need and they must ensure that the goods and services support the customer’s needs. To attract customers to the business, quality products must be created and customers must be satisfied with the result. Marketing also if marketing is carried out successfully it will increase the profit of the business and make them more likely to become successful. There are marketing objectives in businesses that must be fulfilled in order to be successful:
- Discovering the needs of consumers to make sure that a quality product is produced means that the business must first find out what kind of products the customers want before they can start creating and selling them. When creating the product it must also be what the customer desires. So business must be creative and For example when Nike design products they must first know what the consumers want such as professional athletes in football they will require quality football boots so they are able to compete with everyone and play at the highest Level. They then must work on creating a boot that would support the player’s abilities and help them perform better in games. If they can do this then would also attract more customers and help them increase profit and market share. When Nike decide to make a product they conduct lots of market research so they know exactly what to create. This objective is important to a business because the customers are main priority and so they need to be supplied with quality products in order for the business to get a positive return and more likely to become successful.
- Understanding and keeping ahead of the competition is another objective that businesses need to meet in order to be successful. The marketing department would need to plan how they are going to beat the competition as they may not be the only business on the market. E.g. Tesco make a profit of £250 million in the previous and they want to make double that the next year how ever their will also be rival companies like Asda that are making more quality products and they have a larger market share so this will affect Nike’s profit margin so t hey may have to lower their prices to retain their customers. This is why businesses must conduct market research in order to help them decide what products to create and improve their existing products so they can keep ahead of the competition. Ways they could to this is to identify their competitors so who are they and what is the currently selling or improve their knowledge of customers and competitors so if there are trends it can be acknowledged. This objective is important to a business because the competitors are going to constantly making new product to rival other businesses e.g. in the computer industry there are 2 well known graphics cards known as ATI and Nvidia and they are constantly working hard to make better and more powerful graphics cards so Nvidia may make one good for today but tomorrow ATI will have a more powerful and enhanced version of the card so it makes it interesting and they will both make more business but who will be on top consistently is what the question is.
- When creating new products and identifying opportunities, businesses need to be innovative and enterprising this means that the old products that don’t sell due to poor quality or too expensive should be replaced with better products. There are different new products that could be created such as one that replaced an existing product for example Sony may have a wide range of high-definition televisions however they can create a new product such as 3D televisions to replaced HD and this may attract more customers and increase their profit. A new product could also be one that opens up a new market for example HP (Hewlett-Packard) which are a computer manufacturer could expand their business and create a mobile or games console and this would expand their market and may attract more customers if they succeed in conducting market research. Finally, businesses could broaden an existing market for example most football boots that are for men, a new range of women’s boots could be made as they also play football so there are more customers in the business and they become more profitable. When creating new products there are six stages in the development process which shows that the business is being creative when they are made. The six stages are: 1) ideas which are when all thoughts for new products are expressed by research and development or monitoring the competitors so the more ideas there are, the better the chance of making a successful product, 2) screening of ideas so the thoughts are collected and are viewed to see if they are viable or not and if it fits with the other products and this is important because each idea has to be viewed and planned out also are they going to be able to make the product and are the ideas rational?, 3) marketing analysis so who are the products going to be aimed at and how they are going to be sold also how attractive the market is. There are many things that could be included in marketing analysis such as market size, growth rate, profitability and trends, 4) product development so they begin making initial designs and concepts of the product so they can see what it would look like and if it is good enough to become a part of the business, 5) testing to see if it is good and would make money also it should not do anything out of the ordinary for example a Dyson hover should pick up all the dust and rubbish off the floor and should not make any noises or blow up otherwise if the customer buys it and this happens then they would demand a refund or replacement for the product and the business could lose lots of money. Finally 6) the business would launch and commercialise the product so it is ready to go out on the market and help make a profit for the business also the customers may get glimpses of the product before it is released. During the launch there are certain requirements that must be met in order for it to be successful. They must plan how they are going to do this, evaluate the performance of the product, marketing and sales must be prepared and have all their personnel trained and product should be supported if needed so things like FAQ’s should be answered.
- Businesses need to communicate effectively with consumers to satisfy their expectations. This means that they must effectively be able to communicate with customers as this could be the difference into whether a product sells or not e.g. if Tesco’s are having a complaint about a electronic device that doesn’t work then they would ask for a replacement or a refund however they may not have the receipt so the customer would not be able to get a refund however they may be able to negotiate and the business must think of a solution to avoid any misunderstanding or conflict. As customers are the main attraction of the business, they need to be impressed by what the business has to offer. When the business needs to provide service or sell products to customers they will have to use persuasive techniques to make them purchase goods from the business. The assorted ways in which a business communicates with the customers effectively to satisfy them is known as the ‘Promotional mix’. One of the things included in the promotional mix is advertisements which are effective but cost lot of money. An example of a popular advert would be the Pepsi commercial 2010 set in Africa. This is a good advert because it features professional football players in their advert that are popular and known world wide so this would make the customers and audience familiar with who is in the advert and what is happening. It shows them drinking the Pepsi which makes it tempting for customers to buy the product. Another feature of the ‘promotional mix’ is direct mail which is when the business sends an e-mail, postcard, newsletters and brochures to the customer to get them to buy the products like for example if you have a membership with JD sports they will constantly send emails about popular or new products they have and persuade you to buy them. Public relations are also part of the promotional mix and this is when the business tries to make the public see a positive image and show them that they have quality products. Post cards are useful because they provide a very limited surface area to deliver your message, but that can actually work to your advantage. They force you to get right to the point and select your words efficiently. A drawback of postcards for direct mail marketing is that the customer may not feel they are getting an exclusive offer since everyone from the postal carrier to mailroom personnel can see what the offer is. They’re also easy to ignore in large stacks of mail. Brochures can be used and it allows you to promote your business in an attractive format on glossy paper stock. They could use sponsorship to show they are a good business e.g. Samsung which are a multi-corporation business as they have a range of different goods get sponsorship from Chelsea fc to increase their publicity and although they will spend a lot of money trying to get sponsorship, the long term benefits are that they will have more customers making that money back and possibly a larger profit. Another method of public relations could be to make a donation to a charity or trust which shows good publicity for example Ford Motor Company Donated a Car to Krochet Kids International which would get them noticed and possibly get more customers.
Finally the last of the promotional mix includes sales promotions which could be done in a number of ways. Sales promotions only last for a limited time only because they lose their effectiveness. Promotions are used to get sales quickly to make fast profit and to show competitors they are doing better. Sales promotions can be done in many ways e.g. in JD sports, the stock that hasn’t sold or has been there for long time get priced reduced or sold as part of a deal. Sales promotions are important because they can get customers in the business quickly and large amounts of products are sold and even though it helps to boost sales but it also helps a business to draw new customers while at the same time hang on to older or loyal ones. Another reason why sales promotion is important because it may also help to increase market share because more customers would be attracted to the business because of the discounts they are receiving.
- Businesses must deal with internal and external constraints and they may hamper the business. Constraints are things that may stop the business achieving its goal. The first on these constrains are internal. These are inside the business and relates to internal resources such as financial resources which means that the business are in need of money and cannot do some of their objectives e.g. it could affect the marketing department because they will not be able to do market research and this would affect their selling capacity as they may not be able to attract the customers to buy their products decreasing their profit and market share. Another example could be if car businesses like jaguar and Aston martin had no financial resources then they would not be able to develop their cars further due to their research and development departments having low funds and there would be no income or revenue in the business and could lead to them becoming shutdown. Another internal constraint could be human resources which means that there are low number of staff to get the objective done e.g. creating a product like a car requires a lot of people and a team of workers however if employees decided not to turn up or got sacked then there would be less number of people to create a vehicle which would mean it would either take longer to create the car or they would have to stop the development process completely and reorganise. A constraint outside the business is known as external and this could also affect the business. An external constraint could be something like the laws that the business has to follow such as Health and safety. This is important because employees want to be in a safe working environment and the business wants to ensure nobody is harmed e.g. when undertaking a large task such as extending a current building then their would be lots of heavy constructive work happening so employees must be careful of falls and slips or must be careful of anything collapsing so they must be working in a safe place while all this work takes place. Advertising laws can also be an external constraint because they may use similar work as another business without realising they have done and it may be classed as copyright e.g. Nike and adidas are 2 different businesses so they must use different commercials and advertising techniques such as endorsing their celebrities to do adverts for them however if adidas have a certain football player in their advert that doesn’t give the right for Nike to use them in their commercial such as Wayne Rooney who is sponsored by Nike so adidas cannot use him in their commercials because they do not provide sponsorship or any support to him. Customers are one of the main external constraints because if they don’t buy or are not impressed with the business then it will affect their profit severely as they are the main target of the business. Another external constraint is competitors because if a business want to market a particular product but the competitor has already had success in the same product then it will be hard for the business to get customers e.g. if apple decided to make a games console it would be hard because there are major rivals in Sony’s PlayStation 3, Nintendo’s DS/Wii and Microsoft’s Xbox 360 so apple may need to rethink how they are going to stand out and get more customers than the competitors as they are very well known consoles played by millions of people over the worlds. Economic reasons such as the recession can also be an external constraint because when customers receive low income the business will find it hard to market a luxury product e.g. a car such as the Mercedes-Benz S-Class or a Rolls-Royce Phantom coupe are very expensive cars and to get them to sell they need customers that have substantial budget which may be rare during the recession.