The marketing strategy

1.1. What is the difference between strategy and tactics?

The strategy represents the direction an organization chooses to take in order to achieve its
objectives while the tactics are the specific activities the company does in order to implement
its strategy. The marketing strategy is always decided before the latter to ensure that the tactics
are focused on a clear objective. Other important differences are that the marketing strategy is
longer-term than tactics and tactics might change more often than the strategy.

1.2. Are the terms in the box examples of strategies or tactics?

In the sphere of tactics, we have repackaging/relabeling, an advertising campaign, price

promotion/special offers, a new website, a PR campaign.

The representative terms for strategies are differentiation, market development, innovation,
product development, concentrated growth.

3.a.1 Gavin is suggesting to Joana as marketing strategies to increase awareness of electric cars
in general, to position Frezna as the innovators in electric car technology and the flagship
Model G Roadster as a real, viable alternative to petrol-driven cars, to enter new overseas
markets and to improve the quality of the value proposition through improved service.

3.a.2. A strategy Gavin does not recommend is thinking about new product lines. From a
marketing perspective, this might affect the success of the current line and their priority is to
focus on how to promote the current line.

3.b. this1 = increasing awareness of electric cars

This2= raising brand awareness of Frezna

That objective3= entering new markets oversea

These4= new international distribution channels

Those new markets5= new overseas markets

This6=positioning Frezna as the innovators in electric car technology and the flagship Model
G Roadster as a real, viable alternative to petrol driven cars

This7= differentiating Frezna from the key competitors, Porche and Ferrari, and starting to take
market share away from them

Those suggestions8= better customer service, a more personalized sales process and improved
after-sales technical support

3.c.1. The future simple

3.c.2. The future simple is used in this case because the envisaged actions are supposed to take
place in the near future. Gavin is making predictions.

3.c.3. Can is a modal verb and its future cannot be formed with the usual particle “will”.
Therefore, in order to express the future, the recommended expression is “will be able to”.

3.d.1. that will help us to increase market share.

3.d.2. For this to be successful; those will allow us to reach new customers in those markets.

3.d.3. that will help us to convert customers of competing brands.

3.d.4 doing this, our sales will increase.

3.e. and 3.f. We didn’t have access to unit 2.

4.a.1. The marketing mix is a combination of techniques that an organization uses to market
itself, a product or a brand.

4.a.2. The marketing mix is formed by the following elements: product (what you sell), price
(the cost of the product or service), place (how and where the product is being sold), promotion
(how you inform the potential customers about your product) to which we add process (refers
to the entire process of manufacturing, delivery and sale), people (or the employees) and
physical evidence (making a service tangible).

4.b.

1. Product h, i

2. Price c, f

3. Place j

4. Promotion e, g, k, l, n

5. People m

6. Process a, b

7. Physical evidence d

4.c. 4.d and 4.e. we don’t have access to the recording

4.f.1. The aim of promotion is to get your message out. That message will often highlight or
emphasize a product’s features, it will try to convince people to do or buy something.

4.f.2. A company might implement a premium pricing strategy if they have a competitive
advantage in the market.

4.f.3. If the price of Product A remains relative to the price of Product B, it changes according
to the level of Product B.
4.f.4. You launch a website or a PR campaign, but you open a showroom or a shop.

4.f.5. You can increase your advertising spend in the media and increase your presence at
events, but you raise awareness of something.

4.f.6. You implement a strategy, but you employ tactics.

4.g. we didn’t have access to unit 2

5.a.1.a. the affordable approach: you allocate a percentage of revenue after costs have been
taken away

b. the percentage of sales approach: you allocate a percentage of predicted sales

c. the objective-and-task approach: you estimate how much it will cost to achieve each of the
objectives

d. competitive parity: you spend at least as much as your most important competitors

e. last year’s budget plus or minus method: you use your last year’s budget to make the strategy
for this year

f. the industry norm method: you spend the same amount as the other organizations in your
industry field.

5.2. I personally used to work for a company that produces and delivers agriculture materials.
When setting the new budget, they used the percentage of sales approach as the customers mass
was more or less stable thorough the years.

5.3. Usually when signing the budget, the main responsible is the CFO (Chief Financial
officer) but it depends on each organization and how the departments are segmented.

5.4.a. There are several reasons for which the budget could be rejected. For instance, if the
organization doesn’t have the necessary financial means to support it or if there might be a fall
in sales.

5.4.b and 5.4.c we don’t have access to the tape.

5.4.d. … you’ve asked for a significant increase in advertising budget – it’s more than 50% up
on than last year

Is magazine advertising really the most cost-effective way of reaching our potential customers?

… to approve a budget of this size, I need to see some concrete figures.

I need you to calculate the return on investment of a 50% increase in advertising spend over
the next 12 months.

… to put in place a monthly review of real performance against budget

I think we should develop some marketing metrics to properly measure the success of the
activities you’re proposing.

5.e. we didn’t have access to unit 2. 5.f. it is impossible to do collaborative tasks.

6.a. It should be written before the rest of the marketing plan. F (It is the last part)

It should summarize the information in the marketing plan. T

It should introduce new information not contained in other parts of the marketing plan. F (it
should not contain new information. It is a synthesis of everything that was already discussed)

It should be short (one or two pages maximum) T

It should only give facts and not try to influence the reader. F (it should approach a strong and
positive vocabulary)

It should end positively. T

6.b.1. D

6.b.2. B

6.b.3. A

6.b.4. C