3.3.1 Setting marketing objectives Flashcards
Define what the process of making marketing objectives is.
Marketing objectives are made using process of identifying, anticipating (predicting), and satisfying customer needs profitably
What do effective marketing objectives do?
- Ensure functional activities consistent with corporate objectives
- Provide a focus for marketing decision-making
- Provide incentives for marketing team and a measure of success/failure
- Establish priorities for marketing resources
What are the types of marketing objectives?
- Sales volume
- Sales value (revenue)
- Market growth (%)
- Market share (%)
- Brand loyalty/awareness
What are external influences on marketing objectives and decisions?
- Economic environment
- Competitor actions
- Market dynamics
- Technological change
- Social and political change
How does the economic environment affect marketing objectives and decisions?
The key factor in determining demand (e.g. many marketing objectives have been thwarted or changed as a result of the recession). Factors such as exchange rates would also impact objectives concerned with international marketing.
How do competitor actions affect marketing objectives and decisions?
marketing objectives have to take account of likely/possible competitor response. For example, a competitor focused on low prices would mean that the marketing department would have to undercut their prices to be price competitive.
How do market dynamics affect marketing objectives and decisions?
the key market dynamics are market size, growth and segmentation. Changes in any of these undoubtedly influence marketing objectives. A market whose growth slows is less likely to support an objective of significant revenue growth or new product development
How does technological change affect marketing objectives and decisions?
consumer and other markets are now affected by rapid changes in technology, shortening product life cycles and opportunities that have been created for innovation
How does social and political change affect marketing objectives and decisions?
changes to legislation may create or prevent marketing opportunities. Change in the structure and attitudes of society also have major implications for many markets.
What are internal influences on marketing objectives and decisions?
- Corporate objectives
- Finance
- Human resources
- Operations
- Business culture
How do corporate objectives affect marketing objectives and decisions?
as with all the functional areas, corporate objectives are the most important internal influence. A marketing objective should not conflict with a corporate objective
How does finance affect marketing objectives and decisions?
the financial position of the business (e.g. profitability, cash flow, liquidity) directly affects the scope and scale or marketing activities.
How does human resources affect marketing objectives and decisions?
for a services business in particular, the quality and capacity of the workforce is a key factor in affecting marketing objectives – a motivated and well-trained workforce can deliver market-leading customer service and productivity to create a competitive marketing advantage
How would operations affect marketing objectives and decisions?
Operations has a key role to play in enabling the business to compete on cost efficiency and quality. Effective capacity management also plays a part in determining whether a business can achieve its revenue objective
How does business culture affect marketing objectives and decisions?
a marketing-orientated business culture is constantly looking for ways to meet customer needs, whereas a production-orientated culture may result in management setting unrealistic or irrelevant marketing objectives
