Decision Making To Improve Marketing Performance

Question 1

What do all businesses departments have

Answer 1

All business departments, or functions, have objectives which contribute to the business’ overall mission

Question 2

What are departmental objectives known as

Answer 2

Departmental objectives are known as functional objectives

Question 3

What different objectives may the marketing function have

Answer 3

The marketing function may have a range of different objectives:
Sales volume and sales value
Market size
Market share
Brand loyalty

Question 4

What is a sales volume objective

Answer 4

Sales volume - increasing the volume of goods sold

Question 5

What is a sales value objective

Answer 5

Sales value - increasing the revenue generated through the sale of goods and services

Question 6

What does a market size objective refer to

Answer 6

Increasing the size of the market so that a business can try and increase its sales

Question 7

What does a market share objective involve

Answer 7

involves a business increasing its market share to attract customers from competitors

Question 8

What does a brand loyalty objective involve

Answer 8

retaining customers and ensuring repeat customers

Question 9

How can you measure a businesses success

Answer 9

To measure a business’ success, you can calculate market growth, sales growth and market share

Question 10

When does sales growth occur

Answer 10

Sales growth occurs when a business increases its sales in terms of volume or value

Question 11

What is an example of sales growth occurring

Answer 11

• Netflix has 130 million active subscribers and if this increases in volume by 20%, there will be 130 million x 1.20 which gives 156 million subscribers
• If each customer pays £50 per year, then Netflix sales will rise by 26 million x £50 = £1.3bn

Question 12

What does market growth describe

Answer 12

Market growth describes when an industry grows in terms of either volume or value

Question 13

What is an example of market growth

Answer 13

the automotive industry in the United Kingdom is worth £77.5 billion in value. A 10% increase in market growth would mean the industry was now worth £77.5 billion x 1.10 which gives £85.25 billion

Question 14

What does market share refer to

Answer 14

Market share refers to the proportion of a market that a business controls in order to satisfy customer needs