Aims and objectives of public, private and voluntary organisations

✅ Paper Type: Free Essay	✅ Subject: Marketing
✅ Wordcount: 3117 words	✅ Published: 1st Jan 2015

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In business there are three different concepts. We’ll start off with the production concept. As you may or may not know there are fixed and variable costs. The fixed costs don’t change, so if a company makes a large amount of products they can spread the fixed costs over all those products, which individually makes them cheaper than if they were produced and sold in smaller numbers. Second we have the sales concept, which basically means that as a consumer you will have a product and/or service shoved down your throat. The third concept is a bit different than the last two. The marketing concept consults customers before taking action, rather than risking products or services never being purchased.

Aims and objectives of the three sectors

We’ll continue with the private sector, which aims for profit, the public sector, owned by the government and the voluntary sector. When a business is first set up, its main objective will be to survive. When survival is assured, private businesses may take it to the next level and expand to maximise their profits. The public sector however, serves the tax-payers so they can’t afford to take any risks. Some things cannot be trusted to the private sector, such as the law. Therefore the government handles that. The voluntary sector consists of people who want to serve a good cause for whatever reasons apply on them individually. They don’t get paid for it, that’s why they are volunteers. Although if one has to make costs in order to help the cause, he or she may receive compensation, like when a medic volunteered to travel abroad in order to support the good cause. They all have objectives and they all have to be SMART.

Why objectives have to be SMART

Specific, so there’s something to focus on and unnecessary costs are evaded.

Measurable, because if you can’t you might (financially) end up worse than when you started.

Achievable, humans can only do so much. To aim for the unachievable is being unrealistic and useless if not a waste of time and/or money.

Realistic, Unrealistic objectives are bound to fail and when they do people will lose their moral and money.

Time-related, even a simple task as calling someone has to be time-related. If not you might end up spending a lifetime for that one call. Also, you won’t detect when things aren’t going well. You might end up repeatedly saying: ‘Oh, there’s always tomorrow.’ Until there isn’t.

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Marketing circles around customers. What they want and what they need, the demand. Once that’s clear it is a company’s job to deliver that, the supply. When marketing-research is correctly executed a company should be able to increase its profits and indirectly we all benefit of that.

Example of a SMART objective

A modelling agency could be in need of more models. You know that you will lose at least 20 models within 5 weeks. For the sake of your business’ growth, you try to find 5 more ‘lookers’ in those weeks. Your SMART objective could be:

“Recruit 5 new models each week for five weeks.”

Connect marketing objectives to organisational objectives

Marketing objectives cannot clash with a business its broader objective. Instead, a marketing objective should support the achievement of that organisational objective. They have in common that both are SMART, though they do have different direct goals.

Let’s say you need 40 more employees by next season. Those employees need to be paid. If your current budget doesn’t support that need, you have a problem which the marketing department could solve. Here the marketing objective could be to increase sales by 20% in 3 months time. The business’ broader objective maintains employing those people. To put it in simple words; ‘Marketing should support the business and not the other way around.’

Task 1b

Marketing Techniques:

Cartier watches

Coca Cola drinks

Growth and survival strategies

Diversification

Penetration

Market development

Product development

Diversification

Cartier extended its brand by, for example, creating the first jewellery bracelet-watch for ladies back in 1888.

Penetration

The mass wouldn’t purchase their products, but it is an option for those among us that are wealthier than others.

Its products are made for the top-notch of people, meaning they had to penetrate a rather small market.

Market development

Nowadays their customer base contains mostly celebrities, unlike in the past.

Product development

Because they have few customers, they maintain a good relationship with them. Cartier also develops new products for those people. The market is still the same, while the products change.

Main survival strategy

Cartier’s products are quite expensive which means they have to sell fewer to get a certain amount.

Product development

Besides the infamous drink the company makes about 3.300 more of the sort. Some popular examples are Fanta and Aquarius.

Diversification

Also, Aquarius created an image for athletes, which is a new market.

Market development

The company made a variety of light drinks next to their regular drinks, such as Cola Zero and Light.

Product development

They also produce them in different sizes and shapes.

They sell them to the same market.

Main survival strategy

This is not a topic within Coca Cola because it already has established a vast empire within the consuming economy.

Branding

Branding and positioning

Brand extension

Brand building

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Branding and positioning

Cartiers corporate image is being an exclusive, elegant and qualitative provider of various goods.

Brand extension

Besides their line of watches, Cartier makes other jewellery too. Not to mention their leather goods and accessories by which the brand is extended.

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Brand building

Cartier got more and more known as they opened boutiques

worldwide. Especially the ones in Paris, London, New York and Tokyo contributed to their corporate image. Like Coca Cola it’s their job at Cartier’s to keep things the way they are.

Branding and positioning

Coca Cola here is the exact opposite of Cartier. Their products are not exclusive at all. As a matter of fact, the next “Coke” is around the corner. Even so, they are without doubt the world’s nr.1 brand within its aspect.

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Brand extension

Globally recognised, Coca Cola is so successful that many have tried (in vain) to copy its flavour. In response to that the

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company made the earlier mentioned side-products.

Brand building

The company has met all the known requirements to building a successful brand. Their job now is simply to sustain that.

Relationship marketing

In the 20th century Cartier began adding reference numbers to their sold watches. Collectors refused to acknowledge watches as authentic unless it had these reference numbers. Cartier’s designers sometimes design a completely new item and have it hand-made for an exclusive costumer. The customer then feels special and when he/she does, a relationship has been made.

A recent example of relationship marketing concerning Coca Cola is the buses that have toured throughout the country to refresh people if they’re feeling hot. They made commercials for this marketing of theirs as well. Furthermore Coca Cola never stops being seen and doing so, they’ve created the idea that one absolutely HAS to consume one of Coca Cola’s products since everyone else did.

Task 1c

Sale of Goods Act 1979

This Act means that a supplier may not sell rubbish. The products it sells has to be from at least reasonable quality and these goods must be exactly how the company described it.

Let’s say you just purchased a brand new car and the wheels literally fall off. You may resort to the sale of goods act.

Consumer Protection from Unfair Trading Regulations 2008

This Act gives consumers the right to demand fair treatment and honesty from whatever business they may encounter. Some used quite unusual if not unacceptable tactics to sell their products. This may make a “weak” consumer buy it once, but never again. He or she will also spread the word and finally put the business down, which is why it will never be part of the marketing at any businesses willing to be successful.

You’re walking in a store, in search of an mp3-player when suddenly a salesman pops up in front of you! He asks if he can help you while invading your personal space and blocking the exit. You no longer feel secure and the salesman uses that to persuade you into buying an mp3-player that’s priced triple as high as the mp3-player of your own choice. Some guts he has! But now you have the law on your side.

Consumer Credit Acts 1974 and 2006

These acts were made for businesses that offer tangible products, services on credit, or loans. Such businesses must be authorized by the Office of Fair Trading. Complaints are handled by the Financial Ombudsman Service. Businesses that give consumers money beforehand also have to provide them with updates to prevent debt rising. The FOS serves as an intermediary between business and consumer when needed.

Your insurance company is closing down due to unclear circumstances. If they don’t give you a heads up about the situation, you might find yourself walking around uninsured. If something does happen, the joke is on them because of this law.

Consumer Protection (Distance Selling) Regulations 2000

These laws apply on all forms of selling without face-to-face contact between a business and its customers. The Regulations state that these type of businesses have to give the (potential) customer all necessary data. This is information about the business itself, whatever it is that they’re offering, how payments can be made, how / by whom and when deliveries are made and of course everything about the possibilities of cancelling a purchase when necessary.

You’re buying some items from the web. If the business hid something that’d make you not want to purchase any items of them, you’re favoured by this law.

Data Protection Act 1998

This Act has been made to protect customers by making it illegal for businesses to abuse ones privacy (information-wise). Data may be obtained, but this Act says that it has to be done properly, meaning it was not taken by force, under pressure or anything else that contradicts with the law. It must merely be used for the purpose(s) one gave the information for. The info in a business’ database has to be accurate, destroyed if no longer necessary and kept up to date. It shouldn’t be transported more than once (from C2B) but the rules specifically stress that the data must be protected from transfer to anywhere outside the European Economic Area. That is, unless of course the area involved has trustworthy protection.

Suppose you gave information about your buying habits in a survey for insight on which brands sell best. This information is bounded to you and may not fall into the hands of a third party. If Albert Heijn, for example, has access to your information and uses it to send you special offers based on what you’ve bought recently, they are handling against the law.

Voluntary Codes of Advertising Practice and the Advertising Standards Authority

This rule sees to it that advertisements are within the law, decent and honest. They may not be deceitful. If an advertiser clashes with this law, the Advertising Standards Authority may take action. The ASA can either check any advertising before it comes out, send such an advertiser to the Office of Fair trading or ask that the advertisements are withdrawn from the media.

When an advertisement is considered to be discriminating and hurtful, the ASA may take one of upper mentioned actions.

Pressure groups and consumerism

A pressure group puts pressure on business or government because they believe wrong was done. Typical for such groups is to draw attention via media and raising awareness about the conflict. This could damage a company its reputation which inevitably leads to decreasing sales. A business can then either come up with a proposition or cope with the situation. The chances of survival are minimal with the last option taken. The whole affair may have started because of the pressure groups, but it are the consumers that hold the power. A business has to sell and make profit in order to survive. This means consumers have the right to be; safe, able to choose, informed and listened at.

Mediawatch-UK is a pressure group that operates in the United Kingdom. They campaign against the publication of anything that can be considered harmful and offensive. If it’s about a product from a business, consumers might stop buying it. The business will then on its turn respond and, most likely, come up with a proposition where everyone benefits from.

Acceptable language

Unacceptable language offends people. The ASA has specified when language is unacceptable. When; sex is involved, swear words and/or strong language is used, religions and/or peoples beliefs are made fun of and when people are offended because of reference to their gender, race, age, sexuality, religion or disability.

Apart from that, the used language has to be understood by your audience. The phrase ‘buckle up’ is clear when on the road and while driving, but what if you find the words in a kitchen?

Task 1d

Market Penetration

Cartier and The Coca Cola Company both penetrated markets. Coca Cola has a bigger market than Cartier. Because Coca Cola is not so expensive, it’s accessible to more people. Cartier is expensive and not many people are willing or can afford to buy their products, which narrows down their customer base. A bottle of Coke is consumed while a watch of Cartier lasts for a long time.

Market Development

Cartier started in Paris, France. The founder’s three grandsons have developed the market of Cartier. In 1859 Cartier moved to a boulevard in Paris. The same products were sold, but to a different market. Coca Cola was originally invented as a medicine. When Asa Griggs Candler bought it out and presented it to the audience as a soft drink, a new market was reached while the product remained the same. Cartier was developing markets by the same blood-line while Coca cola was bought up from a stranger.

Product Development

Cartier’s new products consumed a lot of time and effort to create, while Coca Cola created thousands of varieties by making small changes to each variety on the original. At Coca Cola the most promising varieties are promoted. Others are becoming popular just by showing the brand on the label. If Coca Cola promoted their products of less quality, it would backfire on them. Cartier doesn’t need to advertise a lot, but when they do it, they do it big.

Diversification

Cartier diversified by creating completely different types of products. An example is their line of leather goods. A new product and a new market. Coca Cola did diversify as well, but they did this related to their already present products. They’d for example, make a cooler bag. You’d say that’s product development, but you could use it for keeping other drinks cools too.

Branding

The name Coca Cola came from when there was put actual coke into the drink. Cartier is the family’s legacy. The Coca Cola Company related its name to their product while at Cartier’s they related the name to their family’s.

Relationship Marketing

Since Cartier has a small customer base, they can put more effort into maintaining relationships with them while it’s impossible for Coca Cola to be that personal, as they have a huge number of customers worldwide. Coca Cola does more transactional marketing where the goal is to just sell. A lifetime customer means relatively more to Cartier then it would to Coca Cola. Financially speaking that is.

Conclusion

I understand how marketing, research and planning the marketing mix are used by businesses. Also, about what businesses do to survive and just how they do that. There are laws that keep organisations from unfair business and there are laws to show what a business may or may not do. You’ve read about brands and why they are important for both individuals and business. Different sectors were discussed and all that can be read on the previous ten pages.

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