Long and Short term objectives

Short term objectives will based on the business focusing on maximizing it's rewards and profits in a year. It would possibly do this by possibly stopping most repairs to the building and facilities it owns, stop the training of employees or end most advertising.
Whereas long term objectives involve substantial planing where objectives are set over a long period of time and repairs to facilities and buildings, training and advertising are main priorities to help encourage growth to the company and add quality to it, and in the long term, profits made can turn out to be huge and more beneficial.

How do firms determine what their aims should be?

Firms will base their mission statements on :

•  the way that they will make money, their purpose.
• The type of market they are in and its current circumstances, which can change the businesses aims depending the situation in that market, if its in a state of growth or decline.
•  What the the current trends are / whats in season.
• What the owner/s of the business wish to achieve.
• Whether the business wants to focus on the quality of it's products or service. 

Mission Statement

Is a statement that sets out the aims of the business (what they want to achieve), which is created as soon as the business sets up.

Examples: McDonald's mission statement-  McDonald's vision is to be the world's best quick-service restaurant experience. Being the best mean's providing outstanding quality , service, cleanliness and value, so that we make every customer in every restaurant smile.

Nike- To bring inspiration and innovation to every athlete in the world (if you have body you are an athlete).

Tesco- Tesco's core purpose is creating value for customers, to earn their lifetime loyalty.

Lego- Though we make toys, we are not just a toy company. Though we make money, we are not driven by profit. Though we are famous for our product, we are defined by our philosophy. Our name comes from the combination of the Danish "leg godt" , which means to "play well" . It is both our name and our nature. We believe that play is the essential ingredient in a child's growth and development. It grows the human spirit. It encourages imagination, conceptual thinking and creation.

Ansoff's Matrix

Is the four different strategies that, businesses will follow in reflection to marketing, businesses will use these strategies at different times during a business's growth.
There are four different strategies which are:
Market Penetration- is used to encourage sales and development, is used at the beginning of a businesses life-cycle which introduces a business the market.
Market development- Attempts to further increase market share of a business.
New Product Development- Offers more variety in products to meet customer needs.
Diversification- Expanding a business's brand of products by entering a new market which helps to increase growth to the business. Is usually the last strategy a business will use once they have a secure and stable position in their current market.

Marketing Objectives, Tactics and Strategies

Marketing Objectives are marketing activities that are lead by the 4 P's (Price, Promotion, Place, Product)
Marketing Strategies is plan detailing how the marketing objective will be fulfilled.
Marketing Tactics isolate decisions that need to be made to ensure that the marketing strategies are a success.

Effective and Normal Objectives.

Normal Objectives are several statements of purpose or aims to make a profit. Whereas Efffective objectives are more specific and use SMART targets.

Specific
Measurable
Achievable     -   Targets
Realistic
Timed

These are important as it sets businesses a deadline to what they should achieve in certain period of time, helping to show them how well their business is doing, and whether it is in a state of growth or decline.

Qualitative and Quantitative Data

Qualitative data- gives an insight into the thoughts and opinions of people. It is concerned with the quality of opinions.

Quantitative data- states statistical facts to allow easy numerical analysis.

Both types of analysis are related to primary research.

Mass and Niche Markets

• Mass markets appeal to a large majority of people, whereas niche markets appeal to a smaller or specific market.
• The mass market has more money to be made in it as there is a wider variety of people, unlike the niche market where there is less money to be made as there is a limited variety of people.
• Mass markets will need more advertisement to get the attention of the consumers so they know what is available but this will result in a high cost. Whereas niche markets will have less advertising but will more specific towards the products that it is selling and who it is targeting.
• Mass market will generally have more room for growth as their is a variety of products on sale and the cost of manufacturing will be cheap due to stock being bough in large amounts (economies of scale). Whereas the niche market will have a small room for growth as it will have less sales due too expensive suppliers, as products that the business will be buying will be unique and be order in small quantities as there is less demand, which limits growth in that sector. 

Adding Value

When a firm links value to the price of the product and its usage. The advantage of this is that it can put the right, fair price on a product which helps to benefit the consumer while helping to maximize profits for the firm. The disadvantages of this is that it can over value a product which other firms have priced at a lower amount and therefore will result in less consumers buying that product from that firm, seeing as the same product is cheaper at a competitor.

Asset-led Marketing

Is when a firm tracts market opportunities which match to the firms's own strengths. The advantages of this is that it is cost efficient for the firm and helps them to maximize profits if their new idea works. The disadvantages of this is that the firms new idea is likely prove to be unpopular with their consumers causing the firm to lose money and have a lower revenue. Again is more likely to work in a market that has limited products for the consumer.

Product Orientation

Firms focus in what it can produce and bases it's decision around that, hoping that this will fit with customer requirements. The disadvantages of this is that it can be very risky as the firm may produce something customers don't want. The advantages of this is that it can be cost efficient and can work very successfully if consumers have limited choice which occurs in regions such as eastern Europe.

Market Orientation

Is when a firm bases its decisions on the customers' needs, by continually monitoring its environment to find out what customers want, what competitors are offering and what changes are occurring in the market. The benefits of this is that a firm can help stay one step ahead of its competitors by offering unique products that can't be purchased at their competitors which also helps to increase product sales and market share. The disadvantages of this is that it is expensive to do and time consuming as market research is constantly needed to carry this process out, which can take very long to complete and if the firm does the market research through a corporation, it can be very costly. It is also very difficult to carry out as market fashion and tastes are constantly changing which can be difficult for a firm to stay on top of whats in fashion.

A Large Market Share

The impacts this will cause on businesses and competitors will lead to both factions having an increase in turnover, profit and power. The market leader will have to some degree power of control over prices and marketing strategies, which competitors may have to follow if the market leader has put prices of products at a low amount. It will allow businesses and their competitors to use economies of scale, which is a reduction in the average costs of production due to the increase in size and scale of output which is bought by a large market share of a sector. This will give businesses the chance to reduce prices and maintain profitability or maintain price and increase profits. Competition will be less fierce in a large market as  there is more money to be made, there is less chance of failure, a high demand for products and there is a higher chance of success.

Size of a Market

Can be measured by the number of items sold (the volume) or the amount of sales in terms of the amount of money spent in it (the value).

Considerations that a business has to make before entering a new market

A business will have to take into account

• lifestyle change to meet the demand of the new market they are entering
• The changes that there will be in the marketing mix
• Being able to take the risks needed to succeed in the new market
• Making new deals and contracts with new suppliers
• Finding out about the competitors in the market, so using resources to get the required information
• Finding out about the new target market, such who they are and how to attract the to the business.
• Taking into account how the current state of the economy will affect the new market a business is entering
• The place/location of the business, and way in which the business  will distribute their new products in the new market sector they are entering
• How e-commerce will have an effect on the way the business will distribute its products in the new market sector and how much of an impact it may have.
• How the cost to achieve break even will change, whether it will be easier or harder for the business to do this in a new market
• Advertising costs- possible sponsorship- how this will help the business when entering a new a market, and whether they way in which they do it will change.
• Whether running costs are going to increase or decrease
• What copyright will need to be obtained in order to enter a new market 
• What the new customer satisfaction is going to be
• Whether any government funding will be needed 
• What the new morals and ethics in the new market are
• How the interest of the stakeholders are going to change 

Geographical and non-geographical markets

Geographical markets are when there are stalls and shops on high street, where customers can go to and see  the products physically in their hand, are at places that exist and that you can go to. Whereas non-geographical are when shops on the internet, so are using e-commerce, allowing consumers to buy online.

Market Share calculation

The market share is the % that firm has of the amount of sales in the market it is in.
Calculation of Market share is sales of product/Total market size X 100 = %

The reaction of Germany to Britain Vetoing at the summit on Friday 9th December

http://news.sky.com/home/video/business-news/video/16127497

Across Europe and especially Germany, have shown their feeling towards Britain, claim that Britain is on the edge of the new Europe map, outside European politics.
German tabloids have stated that the crisis will carry on and will resolve without Britain being apart of it, even though they would have preferred Britain to have been apart of resolving the collapsing Euro.
Many people and countries in the EU are still confused and do not fully understand why Britain has opted of being apart of the bill that states the help of the Euro that what discussed at the summit last week.

Eurozone heading towards recession in 2012

new.sky.com/home/business/article/1613070
<iframe width="640" height="360" src="http://video.sky.com/embed/external/16130884" frameborder="0" allowfullscreen></iframe>

Sky news States that-

• The audit firm states that it expects the 17 members of the Eurozone to shrink in the first quarter of next year.
• It predicts that growth for these countries for the whole year will be only 0.1%
• However it states that unemployment will only fall to a high of 10% by 2015.
• This view of a recession occuring next year has only been backed up by the fact that the Euro on Wednesday 14th December fell to a 11 month low, dropping below 84p.