Coffee delight Essay Example for Free

Coffee delight EssayI agree with Lisas view to a certain extent that the marketing budget is the most important component in the marketing plan. gravel has set a market physical object of two million subscribers by 2015 a target that is actually ambitious to achieve a fifth of the forecasted market share which is seen as very unrealistic with a basic marketing budget and Robert media plc will study to do a higher(prenominal) proportion on research than normal which will cost a lot more than usual. some other reason why the marketing budget is so important is that Robertss media is changing from print dress to digital as they seek to achieve their object of increasing ROCE to 8%.Digital media is a unsanded market for the line of work and therefrom will need extensive research to see what the target markets call for and wants are. Although the marketing department had previously won awards for the way it promoted print magazines, postd was concerned that the new techn ology would require a very different approach. As digital is completely different to print media, it on the face of it needs research conducted. However, Harry is being stubborn and dismissive stating that the marketing budget is un-important and will not provide additional funds.This could thusly mean that the championshipes target the wrong people and that their objective to increase the ROCE to 8% could be dented and un-applicable. The rivals of Roberts media plc are already one step ahead of the business as they were already launching their own digital magazines within the next sic months and had already started their marketing campaign. This will nurture a big effect on the Roberts media as their targeted customers are already being targeted by rivals which could therefore mean fewer sales in the future.As the business is behind its rivals, a big promotional campaign will be needed in order to attract potential customers away from rivals. A big promotional campaign will requ ire a big marketing budget but is what is needed in order to out beat its competitors in the race for customers. However, I agree with Harry not to provide addition funds to the marketing budget as the financial situation of the business is not very stable at this moment in time. The return on capital has move from 10% to 2% meaning that it will not be wisely toinvest as its not really worth it to invest. Along with the poor state of ROCE, the true ratio is also in a bad state fallen from 1. 51 to 0. 51. This means for every 50p of current assets the business had ? 1 of liability. Having such a poor financial position will rupture the finance available and will need to use the scares finance available wisely. To conclude, I certainly agree with Lisa that the businesss marketing budget is the most important feature on the marketing plan.This major throw from print to digital will cost a lot and will be in need of a big marketing budget to be successful. Also, Roberts media is alre ady behind its rivals on its marketing and therefore will need something big to attract customers. Finally, Harry has set a very ambitious objective and therefore it will need a big marketing budget to be able to action its purpose. Although the financial state of the business is poor, harry will need to help its marketing team and provide which they feel what is needed as the long run.