3.3.1 Setting marketing objectives Flashcards
what is an objective based on
sales volume and sales value
market size
sales growth
market share
brand loyalty
what is sales volume
measured in terms of the unit sold
what is sales value
measured in terms of how much is spent on a product
product revenue number
what is market share
total number of potential customers or total potential sales the business could have in a given year
business can look at existing sales numbers to understand and determine market size
what is TAM
total addressable market
what are sales growth trends
managers want to measure how much sales are growing
what is rate of growth
depends on many factors
growth rate of overall sales in a market
depends on current level of sales
what is market share
measure amount of sales a product has as a percentage of a market
reflects what’s happening in market overall
maintain share means growing at competitive rates
what is the market share equation
sales of product / total sales x 100
what does high sales mean?
high outputs?
high prominence?
1 high profits
2 power other suppliers and competitive
3 raise profile and strength of brand
what is brand loyalty
measure how many customers return to the business again
stringer brand loyalty, the more it may be possible to gain from the sale
what is the value of setting market objectives
co-ordinate activities within the business to clarify what priorities are, overall target
value to other departments, takes decisions that are ambitious and helps to make small steps to achieve them
what is internal influence
finance
He
operations
existing position
overall strategy and business objective
what is external influence
political
economic
social
technology
competitive
