Analyse two reasons why there should be a close link between the marketing objectives of a business and its corporate objectives.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] (a) Marketing objectives are objectives set by a business and its marketing department to engage in marketing activities that will support corporate objectives.
2. [1] (a) Specific marketing activities include increasing product awareness, strengthen customer relationships, and strengthen the business brand – activities that would normally be supportive of corporate goals
3. [1] (a) To stop any conflict that might arise between corporate and marketing objectives
4. [1] (a) Ensure that there are appropriate strategies and tactics for the business
5. [1] (a) Will ensure that corporate objectives are more likely to be achieved
6. [1] (a) Marketing objectives and activities can make a significant contribution only if they are closely linked to the corporate objectives.
7. [1] (a) Harder to achieve corporate objectives without marketing objectives.
8. [1] (a) Would waste resources
9. [1] (a) Conflict might arise when the marketing department decides to follow its own objectives, e.g., lower prices when dynamic pricing is needed
10. [1] (a) Corporate objectives require all departments, particularly marketing department, to pursue supportive objectives. To increase market share the marketing department could increase sales through a social media advertising campaign
11. [1] (a) If marketing objective is domestic growth and corporate objective is expanding into overseas markets
12. [1] (a) Increased spending on irrelevant/unnecessary marketing activities – spending money on market research when corporate objective is minimising costs
13. [1] (a) If marketing plans for new products – involves research and development expenditure - must have approval of corporate management and support the corporate objective on the product portfolio
14. [1] (a) If marketing decides that market share of some products should be increased - using product life cycle approach – should not conflict with stated corporate intent as stated in the latest corporate plan
15. [1] (a) A focus on the existing brand by marketing – should align with latest mission statement of the business
16. [1] (a) Targeting new overseas customers – could conflict with corporate goals to expand the business which may seek to concentrate on the domestic market
17. [1] (a) Marketing proposals to strengthen/change the customer relationship – may conflict with corporate pans to explore a new customer relationship model
18. [1] (a) Marketing initiatives to increase sales and revenue with more aggressive advertising and promotion may conflict with a new corporate proposal to strengthen the existing corporate social responsibility approach
19. [1] (a) More use of online marketing activities may not be in the objectives and plans of corporate management
20. [1] (a) These marketing objectives need to support the corporate objectives/priorities – marketing isa functional division of the total business
21. [1] (a) Corporate objectives set the context and discipline for marketing activities – there should be close links and effective communication
22. [1] (a) The impact on a business of an independent marketing department – business could drift and become dysfunctional
23. [1] (a) Corporate objectives focus on the desired performance and results of the total business and marketing is just one component part of the business – this implies close links and corporate responsibility and accountability
24. [1] (b) New business's face many challenges as they aim to survive and reach the point of profitability – the need for an effective cash flow plan – attract customers and build the brand.
25. [1] (b) New airlines may face similar challenges but also additional challenges relating to external factors such as lockdowns in many countries during the pandemic and the pressures to reduce carbon emissions from an increasingly powerful green lobby, and fierce competition in a reducing market - it is in a high-risk industry
26. [1] (b) Success can be measured in different ways and at different times but is usually concerned with such issues as profitability, and sustainability of the business model
27. [1] (b) Business passengers or tourists
28. [1] (b) Flight/route options
29. [1] (b) First class/second class
30. [1] (b) Meals provided
31. [1] (b) Flight attendant service
32. [1] (b) Tickets for the airline
33. [1] (b) The launch time of a new airline is important – the airline industry is a very competitive one -market research should inform -is there ever a good time to enter a very depressed industry
34. [1] (b) A new airline must do a lot of things well to survive and succeed – a competitive strength assessment is vital
35. [1] (b) An appropriate business model is chosen – options include low-cost and premium service – a hybrid model might offer possibilities
36. [1] (b) Price traditionally a critical success factor – new airline will see fare as a key way to attract customers – may consider low pricing strategy – penetration pricing but many competitors doing the same will limit the effectiveness of this approach
37. [1] (b) Compete on level and type of service – informality, fun atmosphere could be adopted as a differentiating approach to attract customers
38. [1] (b) Dynamic pricing and the pricing of on-board ancillary services – charges for baggage, food, premium seat selection, extra leg room on board retailing a significant revenue stream may be used to create financial stability
39. [1] (b) A new airline will seek to effectively manage its fleet of planes—efficiency of turn around will be a priority as will be policies to achieve low maintenance costs – may lease planes rather than purchase
40. [1] (b) Effective financial management – new airline will need to focus on appropriate control methods to ensure liquidity and ability to continue to invest, for the future – will need to convince investors that the airline has a long- term future – performance in the first year of operations will need to be convincing
41. [1] (b) Employee management – a new airline may seek to compete on the professionalism and distinctive relationship of onboard staff to customers – effective training programmes may be used to generate a team/family atmosphere environment
42. [1] (b) Judgement/conclusion as to the significant of charging low prices to a new airline
43. [1] (b) Such judgements/conclusions may be made at any point in the essay, not just in a concluding section
44. [1] (b) Judgement is presented that argues that price has always been the deciding factor affecting the success of airlines and it remains so for a new airline.
45. [1] (b) A judgement is made that the revenue from on-board revenue streams, such as charges for food, luggage, and differentiated seating, is as important or possibly more important for profitability and success than the price set for the airline fare
46. [1] (b) Given the high capital outlay for new planes will low prices be possible in order to pay back and make a profit?
47. [1] (b) Is marketing strategy - use of internet as important as the actual fare/price charged?
48. [1] (b) How important are the available routes and journey schedules?
49. [1] (b) Could external factors such as world-wide economic recession determine the fate of a new airline irrespective of any other business decisions