3.3 Marketing Managment Flashcards
What do marketing objectives include?
Sales volume + value
Market share
Market size
Market + sales growth
Brand loyalty
What do market objectives link closely with?
Competition
Brand awareness and loyalty
Marketing Mix
Market share
Market growth and size
Corporate objectives
What are some external influences of marketing objectives and decisions?
Social
Technological
Competition
Political
HR
What is marketing?
Marketing is “the process of identifying, anticipating and satisfying customer needs profitably”
What is the decision making cycle?
Set objectives
Analyse situation
Assess resources
Make a clear decision
Evaluate decision
What is a marketing objectives ?
A marketing target or goal that an organisation hopes to achieve
Why set marketing objectives?
Steer direction of business
Helps coordinate business activity
Motivational target
Increase the profitability of success - decision making is more focused
Where do marketing objectives come from?
Marketing objectives must be compatible with overall corporate objectives of the company
What is the order marketing objectives should be considered?
Mission
Corporate
Functional
Team
Individual
Examples of how marketing objectives might support corporate objectives
Corporate objectives - market share of 10%
Marketing objective - sales per customer of £100
Unit objective - shop sales of £500k +
What are smart objectives?
Objectives that are
Specific
Measurable
Attainable
Realistic
Timely
What is the value of setting marketing objectives?
Help ensure department stays on track with what business hopes
Objectives must align with corporate objectives
What marketing objectives are of value?
Provide focus and direction for marketing activities and strategy of business
Help ensure that the resources of the marketing department are used effectively
Motivate and align ideas
What are the functional areas?
Marketing
HR
Operations management
Finance
Administration
What are external influences on marketing objectives?
Political and legal environment
Economic change
Social change
Technological change
Competitive environment
What are internal influences on marketing decisions?
Business strategy
Ambition of managers
Existing business performance
Capacity of business
Finance
What framework should you use when analysing an industry and highlighting specific issues within it?
PEST-C
POLITICAL
ECONOMIC
SOCIAL
TECHNOLICIAL
COMPETITIVE
What are the two types of variances?
Adverse
Favourable
What is an Favourable variance?
Actual revenue > budgeted
Actual costs < budgeted
What is a Adverse variance ?
Actual revenue < budgeted
Actual costs > budgeted
Why might Favourable variances occur?
Lower interest rates= higher sales then expected
Bad publicity for rivals = people come to u
Unions might agree to higher wage settlement above inflation rate
Exchange rate change
Why might adverse variables occur?
Increase in costs
Increase in demand
New legislations
Less sales
Lower exchange rate
High interest rates
What is Cash flow?
A period of time where money flows in and out of the business
What is cash flow forecasting ?
Estimating when cash inflows and outflows will occur and how much they will be
What is positive cash flow?
More inflows than outflows
What is a negative cash flow?
More outflows than inflows
What is the importance of cash flow management?
If no adequate availability of cash business can fail
If bills aren’t paid suppliers may refuse to deliver
If staff r not paid they will leave
CF most common reason for business failure
Where needs to be shown on a cash flow forecast?
Cash needs and availability
What does a cash flow forecast show/help show?
Shows monthly inflows and outflows and helps monitor if months ahead will have enough cash to survive / be stable
What are payables?
Money owed to a suppliers by a business
What are receivables ?
Money owed to a business by customers who have bought goods on credit
What are cash and credit sales?
Business may sell goods and receive cash immediately
Although they could sell goods on credit and receive payment at a later date
Cash doesn’t show on inflow until the month it will acc be paid to the business
Cash flow problems?
If a business continually spends more than it receives it will have negative cash flow
Unless it has cash from previous months to fall back on it will shortfall and struggle to pay bills
Actions to remedy the problem would need to be investigated
What causes Cash flow problems ?
Late payments ( bad debts)
Sales are lower than expected
Costs r higher than expected
Unexpected costs arise
Seasonal demands
Too much stock ( leaves cash tied up)
Allowing customers to pay on credit for long time
