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.