Marketing Management (3.3) Flashcards
The Role of Marketing is the process of… :
The process of identifying, anticipating (predicting) and satisfying customer needs profitably.
Marketing Objectives are target’s that a…
Targets that a company’s marketing department sets itself.
~ They are valuable in helping the company to achieve its overall objectives. Should be SMART.
(Marketing Objectives) Sales Volume and Sales Value :
~ Objective might be to reach a certain salves volume over a period of time.
~ Easy to visualise but it doesn’t tell you anything about the money coming in from sales.
~ Businesses that that sell lots of differently priced items usually base objectives on sales value instead.
The Marketing Objectives above were…
Quantitive - there are specific figures to aim for.
~ There can also be qualitative (non-numeric) objectives e.g. improving quality & creating brand loyalty.
The Marketing Objectives in a business have 3 basic objectives, Determine, Develop, Deliver :
~ Determine what the market wants.
~ Develop the strategy to achieve the marketing and business objectives.
~ Deliver a he marketing actions to achieve the objectives.
Marketing objectives set out what a business wants to achieve from its various marketing activities, they need to be :
- SMART (Specific, measurable, achievable, realistic, time specific).
- Provide a focus for marketing management, set usually by the marketing team.
(Marketing Objectives) Market Size is the total… :
The total volume of a given market.
~ If it increases from one period of time to another than the market’s growing.
~ A company might set objectives to stimulate market growth.
(Marketing Objectives) Market Share :
The percentage of total sales that a business has in a specified market.
~ Tells a business how well it’s doing compared to its competitors.
~ To increase this, a business must either entice customers away from competitors or attract brand new customers.
(Marketing Objectives) Market Growth is the percentage growth in… :
The percentage growth in the size of the market, measured over a specific period.
(Marketing Objectives) Sales Growth, The increase in… :
The increase in sales of a product or service over time.
(Marketing Objectives) Brand Loyalty, customers have a… :
Customers have a strong preference towards the identity of a particular product or company.
Marketing Objectives and decisions, internal (2) & external (2) :
Internal : Workforce skills, shareholders’ objectives.
External : Interest rates, Competitors’ actions.
Market Growth (%) formula :
New market size - old
market size
——————————- x 100
Old market size
(if number is negative them the market is shrinking).
In a growing market…
In a shrinking market…
Several firms can grow easily. In a shrinking market, competition can be heavy - there are fewer customers to go around.
- Firms can diversify or they may want to get out the market all together.
Market Share (%) formula :
Sales
—————— x 100
Total market size
Letting your market share go down is not good…
It means that competitors are gaining an advantage over you.
Sales Growth (%) formula :
Sales this year - Sales last year
—————————————— x 100
Sales last year
If sales growth is positive…
If sales growth is negative…
Positive-> Company is gaining sales.
Negative ~> Company is losing sales.
The marketing department combines its analysis of these figures in order to see if they’re meeting objectives.
Effective marketing objectives (4) :
- Ensure functionial….
- Provide a focus for…
- Provide incentives…
- Establish priorites for…
~ Ensure functional objectives consistent with corporate objective:
~ Provide a focus for marketing decision-making and effort.
~ Provide incentives for marketing team and a measure of success and failure.
~ Establish priorities for marketing resources and effort.
What Internal factors will influence a businesses’ Marketing Objectives? (3)
- Corporate/Business objectives.
- Finance.
- Human Resources.
What external factors will influence a businesses’ Marketing Objectives? (4)
- Market.
- Technology.
- Competitors.
- Ethics and Environmental factors.
(Internal Factors influencing Marketing objectives) Corporate/Business Objectives :
Marketing department has to make sure its objectives are aligned with the company’s overall goal e.g. increasing profits.
(Internal Factors influencing Marketing objectives) Finance :
Finance department allocate the budget.
(Internal Factors influencing Marketing objectives) Human Resources :
HR identifies how many staff the company needs. If they decide to cut/increase staff, marketing will have to adjust its objectives to make sure they’re achievable.