The main aim of the business studies coursework is to create a marketing strategy for Mr Errol Anderson and his business venture Errol Anderson Motors. When Errol was in year 10 he done work experience in a local garage. As a young boy Errol had always been interested in cars, and during his work experience, the owner was so impressed by his work, he got given a part time job. Errol left school and got a full-time job as the business was growing. By working full-time he learnt so much more and would be able to run a business.
He worked for many years for Mr Turner, but unfortunately one day he fell ill so he made the decision to move back to Scotland and enjoy retirement. Errol decided to buy the company so he went to the bank and got a loan. The GCSE Business Studies textbook defines a marketing strategy as a medium to long-term plan for meeting marketing objectives e. g. Objectives of increasing sales, business will decide hoe the 4 P’s of that product needs to be altered to achieve the objective like increase promotion of product, lower price or sell the product in more places.
Errol may face problems whilst running a business, the problems he may come across are that as he is a sole trader he won’t have as much capital to start up with and if he has any debts he has to pay them off by himself as he has no one to help him pay it off. He won’t have anybody working for him, as he doesn’t have much money so he will be doing the hours all by himself only until he gets enough money to hire people and be able to pay them.
Errol would also have to pay all the costs of the garage, as he’s renting it out and the water rates, electricity for power and heating and supplies for the repairs and servicing. This would require a lot of money but the bank manager is willing to give Errol all the money he needs to start off with. Sole traders and partnerships have a low the first year they start off with, as they find it hard competing with larger establishments, but when they are well known that’s when they become better at selling customers their services or products. An objective for a business is a goal that they want to achieve.
In this case, Errol, wants to be able to achieve market share, he will try and be the highest in the market by having the highest sales, he would also want wealth creation, he wants to make money for himself and the business so he can take the money home or invest it into the business, survival is also another objective which relates to Errol as he would need to be able to make profit.
Gain more market share and keep customers happy these are the keys things that you need to survive in a business, he would also need profitability as surviving is not enough because to show that you are successful you need to be able to make a profit which can then be invested into the business or for the owner to take home and last but not least Errol has to be able to keep his customers happy with customer satisfaction, by having high quality service and good after sales so then the customer would be willing to come back and spend more money.
Task 1 Marketing media is a big range of advertising media that firms can choose from to advertise their products and services. This means that when a business wants the consumer to know about the new product/service they have, they will advertise in many different ways for them to persuade them to buy it. Some marketing medias only apply to certain types of consumers, so this can help a business a lot. The different types of marketing media available to Errol Anderson to help promote his business are: Category Type of marketing media Example Advantage Disadvantage Visual Internet Promotion through computers Wide audience
Need web page information Visual Audio Television Sky Wide audience Expensive Printed Leaflets Direct mail Cheap information People throw it away Audio Radio Choice Wide audience Can’t see the image Printed Regional newspapers Metro Target area Few people read adverts Printed Magazines Bliss Target audience Expensive Printed Directories Yellow pages Group categories Millions of other ads Printed Billboards Outdoor ads Wide audience Wrong area Printed Posters Movies Wide audience No on looks I think that the appropriate marketing media available to Errol Anderson for him to promote his business are regional newspapers like the leader and the observer.
Also some radio stations like capital, kiss, choice and LBC. Directories are also good like the Yellow Pages and Thomson Local. Errol can also hand out leaflets, business cards and posters so then people would know about him a lot quicker. He could also advertise on Thomsonlocal. com and on Yell. com. Local Newspapers I think that if Errol advertised in local newspapers than people around the area would know more about him. So if he were to advertise in local newspapers than the customers would find it easy to get to him and find him not so far away from there house and they would be more than happy to take their car to him as he is not that far away.
Also, local newspapers are free, so it is more than likely that everyone would get a copy and if someone needed to take their car to a garage and the newspaper was right in front of them than they could just look through the newspaper and find a garage. Radio Stations If Errol were to advertise on radio stations than he would have a wide audience and quite a lot of people would know about him and his business. Different radio stations have different audiences so he should advertise on very popular radio stations like Kiss, which is targeted at the age’s 15-35 and so is Choice. LBC is for the older citizens, which most of them must have a car and capital, which is targeted at nearly everyone, it’s like a family radio station.
So when the adverts come on in the radio stations people would be listening to the adverts and it’s quite effective if you advertise on radio stations as people would try and paint a picture in their head and get an image of what’s going on in the advert. Directories Advertising in directories can be very hard as there are millions of other ads, but if your ad stands out the most on a certain page than you don’t have nothing to worry about. Yellow Pages is a very popular directory book and every household has it as it’s free, and as it’s free and in certain catchments than if people are looking for a garage they can find one in their suitable area.
Thomson local is also a very good directory and to advertise on it, it’s free so you wouldn’t have to worry about the costs of it. As these directories are well known and in every household as they are free, people would be able to trust them as they are worldwide. Leaflets These would be a great way to spread the word of Errol’s garage, and they are efficient as, if a person was handed a leaflet they would look at it and then maybe throw it away if they didn’t want it or keep it and look back at it when it’s needed. These are easy to hand out and easy to get a hold of and if Errol has leaflets than people would know what kind of services he does in his garage.