Internal Influences On Marketing Flashcards
What is the purpose of internal influences on marketing?
The purpose of internal Influences on marketing within the organisation helps to shape a business’s choice of marketing activities.
What are the cost of campaign influences on marketing?
Effective marketing does not have to be expensive. Social media offers a cheap way to get the message across. A business needs to consider how much it normally spends and how effective the spending is in helping meet its objectives. If a business is launching a new product the key objective is increasing awareness. The business needs to calculate how many sales are needed to justify the spend.
How to calculate cost of campaign
Businesses can work out the true cost of an advert by working out how much it costs to be seen by 1000 people - this is the cost per thousand (CPT). This is calculated by dividing the total number of people who are likely to see the advert by 1000, then dividing the cost of running the advert by the answer to get the CPT.
Example: A website charges £800 to feature an advertisement for a week during which time it will be seen 500,000 times. To work out the CPT:
500,000/1000 = 500
£800/500 = 1.60
Available finance influence in marketing
Large businesses may spend a huge amount on marketing throughout the year. Most businesses have limited budgets and may only be able to afford to advertise at certain times of the year. Usually, businesses spend between 1 and 10 per cent of their revenue on marketing each year. They will want to get the best value for money.
Example: In 2013, Coca-Cola had an advertising budget of around £2.5 billion, nearly 7 per cent of its total revenue. This gave it a major advantage over its competitors.
Staff expertise influences in marketing
Larger businesses have a marketing department so will have the expertise in-house to run a marketing campaign.
Smaller businesses may pay agencies and consultants to carry out marketing work, such as market research or writing and designing advertisements.
Size & culture of business and its influence on marketing
Marketing activities are influenced by the size of an organisation. Larger businesses will have bigger budgets, but more people will be able to influence how the marketing budget is spent.
Organisations want their marketing campaign to reflect their values and ideals. A business with a reputation for customer care would focus on this in its marketing activities.
Name the 4 internal influences on marketing
Cost of campaign
Size & culture of the business
Available finance
Staff expertise
