3.3 Flashcards
internal factors influencing market objectives
corporate objectives
finance
human resources
finance
finance department allocates the marketing departments budget - affects what the department is able to do
if the budget is cut then marketing objectives may need to be scaled down
Human Resources
HR planning identifies how many staff the company needs.
if decided to reduce/increase staffing levels marketing will have to adjust its objectives to match what is achievable
corporate objectives
marketing department has to make sure all objectives are aligned with company’s overall goals.
external factors influencing market objectives
market
technology
competitors
ethics and environmental factors
market
state of the economy has a big impact on marketing objectives.
economic boom is a good time to try to increase sales volumes since income levels are higher.
recession - set an objective of maintaining market share.
technology
markets where technology changes rapidly, marketing objectives focus on sales and price - new technology causes prices to rise or fall very fast.
competitors
actions of competitors affect marketing objectives - particularly in a highly competitive market.
if a competitor is focused on low prices, then they may alter objectives so customers seem them as price competitive.
ethics and environmental factors
behaving in a harmful way can damage a company’s brand image
consumers ethical awareness is increasing
the law directly affects the marketing objective
PREDATORY PRICING (cutting prices to force a competitor out of business) is illegal in EU & US
TRADE DESCRIPTIONS ACT regulates promotion (bus cant lie about product)
advertising of some products is restricted (prescription medicine, alcohol, tabacco)
different ways a market can be classified
geography
nature
seasonality
development level
product destination
market growth (%)
new market size - old market size
————————————————– x 100
old market size
market share (%)
. sales
—————————- x 100
total market share
sales growth (%)
sales this year - sales last year
——————————————- x 100
sales last year
market analysis gives firms information about market size and growth
in a growing market several firms can grow easily
in a shrinking market, competition can be heavy - few customers to go around.
market analysis tells firms about their market share
MS is the % of sales in a market that is made by one firm, or by one brand.
MS going down isn’t good - means comp are gaining an advantage over u
sales growth can be used to analyse market trends
if sales growth is + company is gaining sales
sales growth is - then company is losing sales
marketing department combines its analysis of these figures in order to see if they are meeting objectives
market mapping compares 2 features of products or brands
shows extremes for 2 measures that are important to customers (low v high quality)
laid out as a matrix - products are positioned according to where they lie between each pair of extremes
information from analysing market maps
spot a gap in the market
who its closest competitors are
if product sales are declining
how much customers expect to pay
STP
segment, target, position
aims to focus marketing efforts where they’ll be most effective
segment
divide the market into groups with similar characteristics or needs (age)
target
decide which market segment to focus on and adapt the product and the marketing mix to appeal to this group.
positon
position the product in the target customers minds so they see it as better than the competition
different ways to segment a market
demographic
geographic
income
behaviour (amount of use)
segmentation advantages
useful for identifying new customers, markets and products
identify the best way to market a product.
segmentation disadvantages
can cause companies to ignore the needs of potential customers
difficult to break the market into obvious segments - more difficult to find ways of marketing to specific demographics
(target) concentrated marketing
targeting 1 or 2 segments.
