3.3.1 Flashcards
setting marketing objectives
what is a market?
a place where buyers and sellers come to meet
what can a market be expressed as?
- a physical location
- an online location
- a grouping of similar sellers e.g. fast food markets
what does marketing mean?
the function of a business that links the customers in, converting that interest into sales then creating a strong relationship to create brand loyalty
what must business do?
- anticipate demand
- recognise demand
- stimulate demand
- satisfy demand
what does it mean to anticipate demand?
explore where there may be a need
what does it mean to recognise demand?
to identify there is a definite need
what does it mean to stimulate demand?
there may be little or limited demand so businesses must entice customers to want to buy
what does it mean to satisfy demand?
businesses must meet customers expectations and have sufficient stock to meet demand levels
what is relationship marketing?
an approach whereby a company seeks to build a long-term relationship with their consumers by providing consistent satisfaction
- focuses on customers retention rather than one-off sales
what type of business is relationship marketing important to?
small businesses
what are marketing objectives?
targets set to support the marketing activities of a business to help give the business and their employees focus on what to achieve
what are some marketing objectives?
- sales volume and sales value
- sales growth
- market size
- market share
- brand loyalty
what does sales volume mean?
measures the level of sales in a given period in terms of the unites sold
what does sales value mean?
measures the level of sales in a given period in pound sterling
- the value of sales can go up with volume going down if the price is increased
what does sales growth mean?
percentage change in sales volume or value over a given time period
what does market share mean?
measures the sales of a business as a percentage of total market sales in given time period
how do you calculate market share?
total sales of business/total sales in a whole market x100
what does market growth mean?
shows whether or not the market is growing
- if market begins to shrink, the value of the market a business owns will also potentially decrease
how to calculate market growth?
new-old/old x100
what does brand loyalty mean?
when customers repeat purchase from the same business and would choose to buy from them over competitors regardless of the price due to satisfaction by other elements
what does sunk costs mean?
making an investment where you don’t receive a physical return or it takes a significant time
what is an example of sunk cost?
investing in a marketing campaign which isn’t successful
what are internal influences on marketing objectives?
- finance
- Human Resources (HR)
- operations
- existing market position
- overall strategy and business objectives
what does the finance department do?
- manages financial processes and decisions
- controls income, expenditure and ensures effective business running with minimum disruptions
