3.3.1 - Setting marketing objectives Flashcards
What is marketing?
The process of understanding customers and providing them with what they need/want.
What are the five marketing objectives?
- Sales volume and sales value
- Market size
- Market and sales growth
- Market share
- Brand loyalty
What are marketing objectives?
Goals set by the marketing function which are designed to achieve corporate objectives.
What is the sales value?
The level of sales in a given period of time (£)
What is the sales volume?
The level of sales in a given time (units sold)
What is the market size?
How large or how small the market is in regards to sales value or sales volume
What is market/sales growth?
The percentage change in total sales in the market over a given period of time.
What is brand loyalty?
The businesses ability to retain its customers which results in repeat custom.
What is a market share?
The sales of one brand or business as a percentage of the total market sales in a given time period.
How do you calculate the market growth?
Market growth = (the change in the size of the market/the original size of the market) x 100
How do you calculate sales growth?
Sales growth = (the change in the sales of the business/the original sales of the business) x 100
How do you calculate the market share?
Market share = (the sales of a total market held by one product or company/the total sales market sales) x 100
What are the benefits of setting marketing objectives?
- They are aligned with corporate objectives.
- Gives a focus for marketing priorities so resources can be allocated.
- A way of measuring marketing activity performance.
What are the advantages of having a high market share?
- Power in the market to set prices
- More likely to keep customers (high customer loyalty)
- Negotiate better terms with suppliers
Why is market share an excellent measure of success?
It can only increase if a company is performing better than its rivals by taking sales and customers from its rivals.
