Marketing objectives Flashcards
State possible marketing objectives
Sales volume Sales value Market size Market share Brand loyalty
Marketing objectives: Sales volume
Increasing the volume of goods sold
Marketing objectives: Sales value
Increasing the revenue generated through the sale of goods and services
Marketing objectives: Market share
Increasing market share to attract customers from competitors
Marketing objectives: Brand loyalty
Retaining customers and ensuring repeat customers
Marketing objectives: Market size/sales growth
Increase in the size of the whole market in volume or value of sales
What are the ways a business can decide on which marketing objectives to set?
Identify - Using market research and experience
Anticipate - Understanding data and current trends, and then predicting future trends
Target - Planning marketing campaigns
What are objectives?
Long-term targets for a business
What are marketing objectives related to?
Corporate objectives
What is market size?
Potential number of customers in the market
What is market size volume?
Quantity of goods and services produced in a particular market over a period of time, usually one year
What is market size value?
Total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time, usually one year
What is sales volume?
Quantity of goods and services produced by a particular business over a period of time, usually one year
What is sales value?
Total sales revenue of a particular business over a period of time, usually one year
Formula for market growth % of year X
Change in the size of the market between year X-1 and year X/Size of market in year (X-1) x 100
Formula for sales growth % in year X
Chnage in sales of product or business between year X-1 and year X/Sales of product or business in year (X-1) x 100
Market share formula
Sales of one product OR brand OR business/Total sales in the market x 100
Internal influences on marketing objectives
Budget - does the busienss have enough cash to invest in achieving the objective?
Current product portfolio - does the business have a strong range of products?
Skliis/expertise - does the business have the right people? E.g. skills in social media or understanding the market place in different countries
The brand and brand loyalty
All objectives must tie into the other functional objectives - operations, finance and HR
