3.1 Setting marketing objectives

Question 1

What is Marketing?

Answer 1

Marketing is the business function hat provides the link between the business and the consumer.

Question 2

Examples of marketing objectives

Answer 2

• Sales volume and sales value
• Market size
• Market and sales growth
• Market share
• Brand loyalty

Question 3

Market share

Answer 3

Market share is the percentage of a market’s total sales that is earned by a particular company over a specified period of time.

Question 4

Brand loyalty

Answer 4

Brand loyalty is when consumers become committed to a particular brand and make repeated purchases over time.

Question 5

Value of setting marketing objectives

Answer 5

• Target setting: gives focus and sense of direction to the business
• Motivation: objectives can be motivating for those responsible
• Evaluation of performance: objectives should be SMART

Question 6

SMART

Answer 6

S pecific
M easurable
A chievable
R ealistic
T ime based

Question 7

Market share calculation

Answer 7

Sales of firm/ Total market sales x 100

Question 8

Sales growth

Answer 8

Difference in sales/ Earliest year x 100

Question 9

Market growth

Answer 9

Difference in sales/ Earliest year x 100

Question 10

Market size

Answer 10

(Sales/ Market share) x 100

OR

All sales in the market

Question 11

External influences on marketing objectives and decisions

Answer 11

• Market and competition
• Economic factors
• Social factors
• Ethics
• Technology

Question 12

PESTLE

Answer 12

P olitical
E conomic
S ocial
T echnological
E nvironmental

Question 13

Internal influences on marketing objectives and decisions

Answer 13

• Finance available
• Production capacity
• Human resources
• Nature of product