Marketing Aims & Objectives

Question 1

What is the purpose of marketing aims & objectives?

Answer 1

Helps businesses grow or increase turnover and profitability.

Question 2

What are marketing aims and objectives?

Answer 2

An objective is a simple yet short term goal for a business
An aim is a complicated, longer-term goal for a business

Question 3

What are the six main marketing aims & objectives?

Answer 3

Understand customer needs & wants: objective
Develop new products: objective
Improve profitability: aim
Increase market share: aim
Diversification: aim
Increased brand awareness & loyalty: aim

Question 4

Why should a business understand customer needs and wants?

Answer 4

Understanding customer behaviour enables a business to operate and develop to serve its customers.

Question 5

Why should businesses develop new products?

Answer 5

When customers’ needs and demands are identified the business may find that a new product or service is required. Being the first to offer a product or service can mean massive sales and profits.

Question 6

Why should businesses improve profitability?

Answer 6

Profitability enables business growth, competitive advantage, and financial stability. It supports reinvestment, innovation, and expansion, helping the business thrive long-term.

Question 7

Describe why being innovative is so important for a business?

Answer 7

Innovation helps businesses stay competitive, meet customer needs, and adapt to market changes. It drives growth, efficiency, and long-term success.

Question 8

Why do businesses want to increase market share?

Answer 8

Increasing market share boosts revenue, strengthens brand presence, and increases competitive advantage. It often leads to greater influence in the market and better economies of scale, reducing costs.

Question 9

Why do businesses want diversification?

Answer 9

A business does may not want to rely on sales of one product in one market as demands could fall; diversification reduces risk, opens new revenue streams, and helps businesses adapt to market changes, promoting long-term stability and growth.

Question 10

Why do businesses want to increase brand awareness & loyalty?

Answer 10

Strong brand awareness attracts new customers, while loyalty ensures repeat business. Together, they boost sales, enhance reputation, and give a competitive edge.

Question 11

An established car sales business wants to grow and increase its turnover and profitability. Identify possible ways of achieving these aims and objectives.

Think about each of the six marketing aims and objectives and match them to what the business wants to achieve.

Answer 11

1. Increase Market Share: Offer competitive pricing and financing.
2. Develop New Products: Introduce new car models or features.
3. Diversify: Add services like car maintenance or parts sales.
4. Improve Profitability: Optimize operations and reduce costs.
5. Stimulate Demand: Run promotions and special offers.
6. Satisfy Demand: Stock popular car models and accessories.

Question 12

What is market share?

Answer 12

Market Share is a percentage of total sales a company controls.
Example: Selling 30 out of 100 units of the market = 30% market share.

Question 13

What is value share?

Answer 13

Value share is a percentage of total revenue a company earns within the market.
Example: Earning $300 out of $1,000 total revenue of the market = 30% value share.

Question 14

How can a business improve profitability?

Answer 14

1. Increased revenue by expanding products, enhance marketing and targeting customer wants and needs
2. Reduced costs
3. Enhance efficiency
4. Customer retention by fostering loyalty through excellent rewards
5. Invest in product/service quality