Evaluate changes to the marketing strategy of FE needed to increase its market share of the household market for wind turbines.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2020). The mark or mark type is shown in brackets.

1. [K] Marketing strategy is the use of marketing mix with a marketing budget to achieve marketing objectives
2. [K] Definition of market share: sales/market sales × 100
3. [K] Marketing mix is the 4Ps/4Cs
4. [K] Market research to understand customer needs
5. [APP] Use of information regarding the elements of the existing marketing strategy for B2B (specialist magazines, finance deals, premium pricing but linked to selling to households
6. [APP] This is B2C (as end consumer is households)
7. [APP] Need to appeal to retailers or local equivalent such as businesses who sell and install turbines to households
8. [APP] Current strategy hasn't worked
9. [AN] Price may need to be competitive to attract households who may be price sensitive
10. [AN] Increased promotion directed at households to raise awareness of FE's entry into the market
11. [AN] Focus on green energy credentials of purchasing a wind turbine in promotion to attract customers
12. [AN] Elements of promotion may need to be informative as households may lack information about the benefits of renewable energy
13. [AN] To attract retailers to stock wind turbines use of promotions to increase margins to the retailer
14. [AN] Change in channel of distribution, e.g. direct to households may enable FE to offer more competitive prices to attract customers
15. [EVAL] Success may depend on willingness of FE to increase marketing budget to finance increased promotion to attract consumers
16. [EVAL] PED will be significant in determining whether price should change
17. [EVAL] Need for variety of changes to marketing mix to re-focus on target market
18. [EVAL] Depends on competitor activity
19. [EVAL] Any changes should be informed by market research
20. [EVAL] Justification of most important change