Marketing objectives Flashcards
What is marketing?
- It finds customers’ needs and wants and anticipates what they will want in the future.
How is marketing mutually beneficial?
- It supplies goods and services customers want inorder to make a profit
What does marketing cover?
Research, analysis, planning and the marketing mix
summarise the marketing mix in a sentence
All the decisions a business makes to promote and sell a product
summarise marketing objectives?
targets for the marketing department that it sets itself
the process of identifying, anticipating (predicting), and satisfying customer needs profitably
They help to achieve corporate objectives
What are the marketing objectives?
- Sales volume
- Sales value (revenue)
- Market growth (%)
- Market share (%)
- Brand loyalty/awareness
What is the difference between sales volume and sale value marketing objectives
Sales volume is the number of units sold, it is easy to visualise and useful to businesses selling a few similar priced products, but does not tell you the revenue
Sales value is useful to businesses with lots of differently priced products
What is the sales growth objective?
- Aim to increase sales by a certain volume or value in a certain time. Or a percentage growth in sales.
What is the market share objective
The % of sales in a market made by one firm
Increasing market share
Market share is useful as it shows how well the business is competing
To increase market, share business need to entice customers of other firms or attract new ones
What are Market size and market growth objectives?
If the size of the market increases so does the size of the business
Market size = total sales in a market over time.
Firm setting objectives to stimulate market growth will benefit the firm as their sales and maybe market share will increase.
Can be quantitative, specific figures to aim for
Can also be quantitative such as increasing quality or making sure a product survives
What is the brand loyalty objective?
- Holding onto existing customers as well as attracting new ones
- social media useful and helps brands and customers communicate
What are the external influences of marketing objectives and decision making?
- Economic environment
- Competitor actions
- Market dynamics
- Technological change
- Social and political chnage
How might the economic environment affect the marketing objectives?
- Economic environment – the key factor in determining demand (e.g. many marketing objectives have been thwarted or changed as a result of the recession). Factors such as exchange rates would also impact objectives concerned with international marketing.
How might competitor actions affect the marketing objectives?
- Competitor actions – marketing objectives have to take account of likely/possible competitor response (e.g. an objective of increasing market share by definition means that competitor response will not be effective)
How might market dynamics affect marketing objectives and decision making?
How might technological change affect marketing objectives?
- Technological change – consumer and other markets are now affected by rapid changes in technology, shortening product life cycles and opportunities that have been created for innovation
How might Social and political change affect marketing objectives?
- Social and political change – changes to legislation may create or prevent marketing opportunities. Changes in the structure and attitudes of society also have major implications for many markets.
What are the internal factors that affect marketing objectives?
Corporate objectives
Finance
Human resources
Operational issues
Business culture
How do corprate objectives effect marketing objectives?
- as with all the functional areas, corporate objectives are the most important internal influence. A marketing objective should not conflict with a corporate objective
How does finace affect marketing objectives?
- the financial position of the business (e.g. profitability, cash flow, liquidity) directly affects the scope and scale or marketing activities.
How does human resources affect marketing objectives
- – for a services business in particular, the quality and capacity of the workforce is a key factor in affecting marketing objectives – a motivated and well-trained workforce can deliver market-leading customer service and productivity to create a competitive marketing advantage
How do operational issues affect marketing objectives?
- operations has a key role to play in enabling the business to compete on cost (efficiency/productivity) and quality. Effective capacity management also plays a part in determining whether a business can achieve its revenue objective
How does business culture affect marketing objectives?
- a marketing-orientated business is constantly looking for ways to meet customer needs, whereas a production-orientated culture may result in management setting unrealistic or irrelevant marketing objectives
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How does law directly affect marketing objectives?
- Govermetn regulations that impact marketing department:
- Predatory pricing illegal in EU and US
- Trade description act regulates promotion, business not allowed to lie abour products
- Advetising for prescription drugs, alchol and tobacco are restricted
