marketing strategy & marketing budget
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Post on 22-Nov-2014
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DESCRIPTIONIGCSE Business Studies
- 1. MARKETING STRATEGY & MARKETING BUDGET
- 2. SUMMARY A marketing strategy determines the target market of a business and the marketing mix. Marketing objectives can include: - growing the sales of a new or an existing product, - increasing or maintaining market share, - seeking a leading position in a niche market, - exiting a market if sales have declined significantly
- 3. SUMMARY (cont.) A marketing budget is a tool that managers use to help balance what a business needs to spend on marketing against what it can afford. This budget can help monitor spending and how well the strategy performs against its objectives. A marketing budget will aim to be cost-effective . That will involve to spend only the minimum amount of money necessary to achieve the marketing objectives. How much does the business needs to spend? How much can the business afford?
- 4. MARKETING STRATEGY It is a plan detailing the marketing objectives of a business and the actions and resources needed to achieve them.
- 5. MARKETING STRATEGY It combines product development and design, pricing, promotion and distribution. Different products will have different strategies depending on market conditions including stage in the life cycle, competition and level of demand of the product. However, many will have similar objectives.
- 6. MARKETING STRATEGY OBJECTIVES Grow sales of an existing product, by: 1) getting customers to buy more 2) getting new customers to buy 3) selling existing products in new markets, for example moving the product from Europe to America. Grow sales with new products, by: 1) introducing updated versions to existing products (example Ipad, Ipad 2 ) 2) introducing products that are extensions of current products (example SIMS, SIMS Party, etc.) 3) Introducing new and innovative products not marketed before
- 7. MARKETING STRATEGY OBJECTIVES Grow market share by taking sales away from competitors through aggressive marketing tactics. Gaining sales in a niche market by gaining a command position in a small market, through differentiating the product from the competitors or through brand image, etc. Maintain the current position (status quo). Maintain the same levels of sales or market share. Exit the market, by withdrawing the product from the market, if sales have declined significantly.
- 8. MARKETING STRATEGIES 1. Should be flexible and adapt, as market conditions change and products mature. 2. Should be carefully planned and based on good market research and analysis. 3. Should involve benchmarking and a SWOT analysis.
- 9. BENCHMARKING & SWOT ANALYSIS Benchmarking Identifying "best practice" in relation to both the product (including) and the processes by which those products are created and delivered. The search for "best practice" can take place both inside a particular industry, and also in other industries (for example - are there lessons to be learned from other industries?). The objective is to understand and evaluate the current position of a business and to identify areas and means of performance improvement. SWOT analysis- Tool to help identify a companys internal strengths and weaknesses and external opportunities and threats.
- 10. SWOT ANALYSIS
- 11. MARKETING BUDGET It is an estimate of all the likely costs involved in implementing a marketing strategy.
- 12. MARKETING BUDGET The starting point for a budget must be a marketing strategy and plans on how to achieve them. It also needs a marketing budget to fund it. It is a managerial tool to help a business balance what needs to be spent on marketing against what it can afford. A typical marketing budget will include: market research, marketing communications, salaries for marketing staff, travel costs, etc.
- 13. MARKETING BUDGET Methods of setting a budget: Fully costed method All costs are taken into account before setting the budget. As a fixed percentage of sales Matching competitors budgets What the business can afford Cost effectiveness is very important: it means spending the minimum necessary to achieve the marketing objectives.