3.1 Setting marketing objectives

Question 1

What is a marketing objective?

Answer 1

The goal of the marketing function in an organisation ,they include :

• sales volume and sales value
• market size
• market and sales growth
• market share
• brand loyalty

Question 2

What is sales volume?

Answer 2

measures the number of items sold or produced

Question 3

What is sales value?

Answer 3

measure the financial worth of the items sold

Question 4

what is market size?

Answer 4

The volume of sales of a product or the value of sales of a product

Question 5

What is market growth?

Answer 5

the percentage change in sales of a generic product or service over a period of time.

market size in a yr - market size last yr
———————————————————
market size in previous year

times 100 to get percentage

Question 6

What is sales growth?

Answer 6

The percentage change in sales for a specific business or product over a period of time

Sales in year - sales in last year
——————————————— x 100
sales in previous year

Question 7

What is market share?

Answer 7

the percentage of the total sales of a product or service achieved by a firm

sales of 1 product/brand/company
———————————————— x100
total sale in market

Question 8

What is brand loyalty?

Answer 8

a measure of the degree of attachment that a consumer has for a particular brand or product. High brand loyalty for one product will reduce the chances of a consumer switching to another brand.

Question 9

What are the external influences on marketing objectives and decisions?

Answer 9

Market factors 
competitors 
technology 
economical 
suppliers 
ethical 
political 
legal

Question 10

What are internal influences on marketing objectives?

Answer 10

business/corporate objectives
Finance 
HR
operational issues 
nature of product