Marketing objectives, the marketing mix, strategies and customer loyalty

Marketing objectives

Marketing objectives are targets for the marketing function that support the firm's overall aims. The specification names:

• Increase market share: for example from 8% to 10% in two years.
• Increase revenue: for example sales revenue up 15% next year.
• Building a brand: raising awareness and creating a recognised image customers trust.

Good objectives are SMART: specific, measurable, achievable, realistic and time-bound.

The marketing mix (4Ps)

The marketing mix is the combination of factors a business uses to sell a product:

• Product: what is sold, its design, features, quality, packaging, range.
• Price: the amount charged, and the pricing strategy.
• Promotion: how customers are informed and persuaded (advertising, social media, sponsorship, sales promotion).
• Place: how and where the product reaches customers (distribution channels, online or in-store).

The elements must be consistent (an integrated mix): a luxury product needs a high price, exclusive outlets and premium promotion. The right mix depends on the target market, the product's stage in its life cycle, competitors and the firm's budget.

Strategies for different market types

• Mass markets: wide distribution, national advertising, competitive pricing, economies of scale and strong brands.
• Niche markets: specialised products, targeted promotion (specialist media, social media groups), premium pricing, selective distribution, close customer relationships.
• Business to business (B2B): selling to other firms (components, office supplies). Fewer, larger buyers; personal selling and account managers; trade fairs; prices often negotiated; buying based on reliability, quality, after-sales service and cost.
• Business to consumer (B2C): selling to final consumers. Many buyers; mass media and social media advertising; branding and emotional appeals; fixed list prices and promotions.

Customer loyalty

Customer loyalty is when customers repeatedly buy from the same business rather than rivals. Loyal customers are cheaper to keep than new ones are to win, buy more over time, recommend the firm and are less sensitive to price.

Ways to develop it: loyalty cards and reward schemes, excellent customer service, consistent quality, personalised offers using customer data, membership or subscription schemes, after-sales support and building an emotional connection with the brand.

Worked example

A firm making specialist laboratory equipment sells only to universities and hospitals. Suggest how its marketing mix should differ from a soft drinks brand.

1. It is B2B: few large buyers who buy on quality, reliability and service.
2. Promotion: personal selling, trade fairs, technical brochures, rather than TV adverts.
3. Price: negotiated contracts and discounts for bulk orders.
4. Place: direct from producer to customer, with installation and training.

Answer: A B2B mix built on personal relationships, technical quality and service, unlike the mass-media B2C mix of a soft drink.

Check yourself

1. Choosing to sell a product only through the firm's own website is a decision about which element of the marketing mix?
   • Promotion
   • Place
   • Product
   • Price
   Show answer

   Place. Place is how the product reaches customers.

2. Which is most typical of business-to-business marketing?
   • TV advertising to millions of consumers
   • Celebrity endorsements on social media
   • Psychological pricing such as $9.99
   • Personal selling by account managers to a few large buyers
   Show answer

   Personal selling by account managers to a few large buyers. B2B buyers are few and large, and value relationships.

3. Which is a SMART marketing objective?
   • Become more popular
   • Increase market share from 6% to 8% within 18 months
   • Sell lots more products
   • Be the best brand in the world
   Show answer

   Increase market share from 6% to 8% within 18 months. Specific, measurable and time-bound.

4. Explain one way a business can develop customer loyalty.
   Show answer

   It can run a loyalty card scheme that rewards repeat purchases with points or discounts, giving customers a reason to keep buying from it rather than rivals.. A method plus how it keeps customers coming back.

5. Why should the elements of the marketing mix be consistent with each other?
   • A mismatch, such as a premium product sold at a very low price, confuses customers and damages the brand
   • Each element must cost the same
   • Consistency is required by law
   • It means only one element needs to be decided
   Show answer

   A mismatch, such as a premium product sold at a very low price, confuses customers and damages the brand. An integrated mix sends one clear message.

6. Which promotional approach best suits a niche market?
   • Prime-time national TV advertising
   • Mass leaflet drops to every household
   • Targeted adverts in specialist magazines and online communities
   • Billboards in every city
   Show answer

   Targeted adverts in specialist magazines and online communities. Targeted promotion reaches the small group cost-effectively.

7. Explain why keeping existing customers can be more profitable than winning new ones.
   Show answer

   Loyal customers cost less to keep than the advertising needed to attract new customers, and they buy more over time and are less sensitive to price.. Lower acquisition cost and higher lifetime spending.

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Sources

• Pearson Edexcel International Advanced Subsidiary/Advanced Level in Business specification (2018)

Last updated 8 November 2026. Spotted a mistake? Tell us.