Marketing Objectives Flashcards
What is the Role of Marketing?
The process of identifying, anticipating (predicting) and satisfying customer needs profitability.
What is the value of Setting Marketing Objectives?
-They ensure functional activities consistent with corporate objectives.
-They provide a focus for marketing decision-making and effort.
-They provide incentives for marketing and a measure of success/failure.
-They establish priorities for marketing resources and effort.
What is Sales Volume and Sales Value?
An objective might be to reach a certain sales volume (number of units sold) over a certain period of time. A sales volume is easy to visualise, but it doesn’t tell you anything about the amount of money coming in from sales. Businesses that sell a lot of differently priced items usually base objective on sales value instead.
What is Sales Growth?
A business might aim for a growth in sales of a certain volume or a certain value over a year. Alternatively they might aim for a certain percentage growth in sales.
What is Market Share?
The percentage of sales in a market made by one firm or brand. A common marketing objective for a business is to increase their market share by a certain amount. It’s useful because it tells a business how well it’s doing compared to its competitors.
What is Market Size?
The total number of sales (or total value of sales revenue) in the market over a period of time. If the market size increases from one period of time to another then the market is growing.
What is Market Growth?
A company might set objectives to stimulate market growth as long as the company’s market share stays the same or grows hey will see an increase in sales.
What is the Formula for Market Growth?
New market size-Old market size/Old market size x100
What is the Formula for Market Share?
Sales/Total market size x100
What is the Formula for Sales Growth?
Sales this year-Sales last year/Sales last year x100
What Internal Factors influence a businesses Marketing Objectives?
-Budget/financial restraints
-Performance of the company
-Workforce
-Brand association
-Corporate/business objectives -> the marketing department has to make sure its objectives are aligned with the company’s overall goals.
-Finance -> the finance department allocate the budget e.g. small businesses can’t advertise in I’m A Celebrity.
-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 that they are achievable.
What External Factors will influence a businesses Marketing Objectives?
-Competitors
-The economy/interest rates
-The government/laws
-Environmental factors
-Market -> the state of the economy. Economic boom will mean the company could focus on sales volume increases. While a business could focus around maintaining market share.
-Technology -> technology changes mean marketing objectives need to follow and stay dynamic. New technology can cause prices to rise or fall very fast.
-Competitors -> the actions of competitors will impact marketing objectives, especially in highly competitive markets.
-Ethics -> awareness for these issues are increasing amongst consumers so the company may change their marketing objectives to communicate in adverts now ethical and environmentally friendly they are.
What is a Market?
A place where people buy and sell things -> there are different different market for different things.
How can a Market be Classified?
-Geography
-Nature of the product
-Seasonality
-Development level
-Product destination
How can a Market be Analysed?
-Looking at sales growth
-Market growth
-Market share
-Market mapping
