Question

Marketing Strategy The marketing strategy will seek to use several techniques to increase awareness of Basket of Goodies in the city of Stevens. The first method will be a Website. The second will be the use of brochures. These two methods will target the individual customers. The corporate customers will be targeted through a networking campaign, leveraging owner Susan Presento's contacts from her previous employers. The Basket of Goodies Page 7 3.1 Mission Basket of Goodies' mission is to create the finest gift baskets available. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our products and services will exceed the expectations of our customers. 3.2 Marketing Objectives • Increase repeat customers by 7% per quarter. • Increase the number of corporate clients by 6%. • Decrease the marginal per customer acquisition costs by 8% per year. 3.3 Financial Objectives • Profitability by the end of year one. • Reduce the labor costs for order fulfillment by 3% a year. • Increase sales enough to warrant hiring an employee. 3.4 Target Markets BOG has two distinct groups of customers, individuals and corporate customers: 1. Individuals- The individuals are people who are looking to give a friend, relative, colleague, etc., a gift basket as a gesture of goodwill. These customers typically do not have a specific type of gift basket in mind when they look at BOG's product offerings, they just want to give a gift. 2. Corporate- The corporate customer is typically buying the basket for a colleague at work either as a sign of appreciation or for a special event or as a thank you for a customer. The corporate market can be further broken down to banks, health care, employment gifts, real estate, apartments, special events/promotions, corporate headquarters, hotels/vacation resorts, and automobile dealerships.

Question: What are the marketing objectives of the firm?

Answer 1

The marketing objectives of the firm " basket of goodies" as mentioned in page 7 3.2 are:

1. To increase repeat of customer by 7% per quarter :

This means out of the total sales of a particular period, 7% customers should come back and buy again in the next period. Those 7% may not be fixed but should be achieved quarter wise. This will happen by building a brand loyalty to a certain set of customers by giving them personalized good experiences.

2 increase the number of Corporate clients by 6% :

This means for every period of time the number of Corporate clients must be 6% higher than the previous period of time. For this, a good management, for developing a good networking techniques, to contact and attract corporate clients by giving them good deals.

3. Decrease the marginal per customer acquisition cost by 8% per year:

This means the objective is to decrease the marginal cost of acquiring a customer by 8% per year. That is is the cost incurred to attract one customer should be reduced by 8% in the next year. These costs are the campaigning cost, the brochure cost, the management team costs, etc. This cost will gradually decrease as the customer base increase is and there is less need to attract customer through these costly measures and when customers are automatically attracted by the good quality of products.