For my Business Studies coursework I will be focusing on a small sole-trader business named Errol Anderson Motors in the area of Harrow. The owner, Errol Anderson, is about to start up his own business; primarily serving as a car mechanic's garage. He has asked me to help him draw up a marketing strategy. A marketing strategy consists of the main plan a business must follow to succeed. Errol must consider many factors which would affect his success - he must incorporate his ideas into plans which would help him in the long term or for a short term.
Examples of some of these factors are his media choices, market research, and marketing in general. Errol Anderson Motors was established as a result of Errol's strong passion for cars and mechanical engineering. Errol had been working for David Turner, who mentored and aided him into becoming a well experienced and matured mechanic. Errol, after having reached the highest possible status in the job next to Mr Turner, continued to develop his customer service skills and broaden his ever-growing knowledge of cars.
However, Mr Turner desired to retire to Scotland with his family, as he fell ill from old age. This is when Errol decided to found his own company. He was confident that he had enough skill and experience to build a company just as successful as Mr Turner's, and perhaps surpass it. Mr Turner was keen to aid Errol undertake this venture, and offered all the information he could give, and was also willing to sell all his tools and equipment from his garage at a reasonable price. Errol set the issue straight with his family, and discussed loans with his Bank Manager.
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His Bank Manager drew attention to the fact that Sole Trader businesses do not usually survive so easily in the first year - there are many other garages in Harrow that could attract Errol's many potential customers. He also made Errol understand other problems which he would face; Errol had no idea of where he could manage to obtain revenue to finance his business - he could not keep taking out loans. The Bank Manager strongly advised that Errol plan a highly efficacious marketing strategy - which unfortunately Errol had little understanding of.
This is where I have been called to assist. Errol's main aim at first is to survive. There are many other competing garages which could easily snatch away potential customers from Errol if he does not apply an appropriate marketing strategy effectively. To start up a business, the entrepreneur (risk-bearer who brings together all the factors of production to start up a business, i. e. Errol) needs: * Finance - to fund the other factors listed below: finance is usually the most difficult thing to obtain in a business that is starting up.
Errol must use his own savings, or loan off banks or perhaps his family. He must "ration" his capital, as he needs the money to pay back loans and as much money to fall back on as he can, in case of an incident such as the opening of a rival garage who appeal more to Errol's customers. When the business is established enough, Errol could set his eyes on an aim such as profit maximisation - trying to make the most profit possible, e. g. utilising effective promotional campaigns.
After this, Errol could aim to try to make a sufficient amount of profit to keep him comfortable - this would an ideal aim of a small business such as Errol's, as he would not want to work longer hours. "Marketing Media" defined; it is a way of communicating a promotion to potential customers, e. g. through advertising, public relations, or sponsorship. I will now list the different forms of marketing media in the advertising area available to Errol with examples of each in the form of spider diagrams.
The two types of advertising both depend on the business' stature and their target audience (local or worldwide/nationwide). "Above-the-line" advertising is usually the choice for big businesses who would want to promote their product or service via television, cinema, radio, newspapers, etc. "Below-the-line" advertising would be more suitable for local area businesses who would want to make their business known to the public via local newspaper, council magazines, directories, etc.
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