Decision making to improve marketing performance - 3.1

Question 1

What is the value of setting marketing objectives?

Answer 1

Targets set for the marketing activities of a business they should be SMART. Help coordinate activities within the business and marketing division

Question 2

Examples of marketing objectives:

Answer 2

-Sales volume
-Sales value
-Market size
-Market share
-Sales growth

Question 3

What is sales value and volume?

Answer 3

Value of sales measured in terms of how much is spent on a product. Volume of sales is measured in terms of number of units sold.

Question 4

What is market share?

Answer 4

Measures sales of one brand/business as percentage of total market sales in given period. Often given as a target to remain close to competitors.

(sales of this product/total market sales) X100

Question 5

What is market growth?

Answer 5

Percentage change in total sales in the market over given period of time.

Question 6

What is brand loyalty?

Answer 6

Returning customers. Keeping customers is easier and cheaper than attracting new ones.

Question 7

What are the internal influences on marketing objectives and decisions?

Answer 7

-Overall strategy of business (if focused on growth, target level of sales may be higher)
-Finance (promotional activity may be limited)
-Employees (may affect customer service or range of services provided)

Question 8

What are the external influences on marketing objectives and decisions?

Answer 8

-economic change (can affect how much customers can afford to pay)
-social change (what customers think is acceptable and what they expect)
-technological change (communication and how businesses track behaviour)