Marketing objectives

Question 1

What is marketing?

Answer 1

• It finds customers’ needs and wants and anticipates what they will want in the future.

Question 2

How is marketing mutually beneficial?

Answer 2

• It supplies goods and services customers want inorder to make a profit

Question 3

What does marketing cover?

Answer 3

Research, analysis, planning and the marketing mix

Question 4

summarise the marketing mix in a sentence

Answer 4

All the decisions a business makes to promote and sell a product

Question 5

summarise marketing objectives?

Answer 5

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

Question 6

What are the marketing objectives?

Answer 6

• Sales volume
• Sales value (revenue)
• Market growth (%)
• Market share (%)
• Brand loyalty/awareness

Question 7

What is the difference between sales volume and sale value marketing objectives

Answer 7

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

Question 8

What is the sales growth objective?

Answer 8

• Aim to increase sales by a certain volume or value in a certain time. Or a percentage growth in sales.

Question 9

What is the market share objective

Answer 9

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

Question 10

What are Market size and market growth objectives?

Answer 10

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

Question 11

What is the brand loyalty objective?

Answer 11

• Holding onto existing customers as well as attracting new ones
• social media useful and helps brands and customers communicate

Question 12

What are the external influences of marketing objectives and decision making?

Answer 12

• Economic environment
• Competitor actions
• Market dynamics
• Technological change
• Social and political chnage

Question 13

How might the economic environment affect the marketing objectives?

Answer 13

• 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.

Question 14

How might competitor actions affect the marketing objectives?

Answer 14

• 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)

Question 15

How might market dynamics affect marketing objectives and decision making?

Question 16

How might technological change affect marketing objectives?

Answer 16

• 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

Question 17

How might Social and political change affect marketing objectives?

Answer 17

• 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.

Question 18

What are the internal factors that affect marketing objectives?

Answer 18

Corporate objectives

Finance

Human resources

Operational issues

Business culture

Question 19

How do corprate objectives effect marketing objectives?

Answer 19

• as with all the functional areas, corporate objectives are the most important internal influence. A marketing objective should not conflict with a corporate objective

Question 20

How does finace affect marketing objectives?

Answer 20

• the financial position of the business (e.g. profitability, cash flow, liquidity) directly affects the scope and scale or marketing activities.

Question 21

How does human resources affect marketing objectives

Answer 21

• – 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

Question 22

How do operational issues affect marketing objectives?

Answer 22

• 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

Question 23

How does business culture affect marketing objectives?

Answer 23

• 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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Question 24

How does law directly affect marketing objectives?

Answer 24

• 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