Page 194 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

You should have learned from Activity 14.2:

■ the importance of market research in developing a strategy
■ the need for a clear marketing objective(s)
■ the need to consider each element of the marketing mix
■ the constraint placed on a strategy by the marketing budget
■ the importance of monitoring strategy to make sure it is working and will lead to
the achievement of the marketing objective(s).

Using this experience you should now be able to develop a marketing strategy for
other business situations.

ACTIVITY 14.3

For this activity you should work in small groups.
The management of a large hotel in your country is considering ways of increasing room occupancy during the five

off-peak months of the year. The hotel has very good leisure facilities, including a spa with heated indoor pool and beauty
treatments. They have a very large room that is only used for wedding receptions about 30 times during the year. The hotel’s
restaurant has a very good reputation for food quality and providing value for money.

Develop a marketing strategy that might be used by the hotel to increase room occupancy during the five off -peak months
of the year.

TEST YOURSELF
192 1 What is meant by the term ‘marketing strategy’?
2 Why does a marketing strategy need SMART objectives?

KEY TERM Legal controls related to marketing

Legal controls: laws that control All areas of business are aff ected by legal controls. These controls are the laws and
the activity of businesses. regulations of the country in which a business operates. Legal controls vary from
country to country, but most countries have laws that protect consumers from
unfair or dangerous business activity. The common legal controls on businesses

which affect the marketing function are ones that:
EXPLORE!
■ protect consumers from faulty and dangerous goods
Using the internet, newspapers
and government publications, ■ prevent businesses from using advertising to mislead consumers
identify the legal controls that ■ protect consumers from being exploited in industries where there is little or no
protect consumers in your competition.
country.

Impact of legal controls on marketing strategy

Th e first impact on businesses of any legal controls to protect consumers is that
they will increase their costs. Products may need to be changed to meet minimum
quality standards, or prevent any health and safety issues.