Marketing objectives Flashcards
list the marketing objectives
- sales value
- sales volume
- sales growth
- market share
- brand loyalty
define sales value + examples
measured in terms of how much is spent on a product, e.g. sales of £30,000
define sales volume + examples
measured in terms of the number of units sold, for example sales of 200,000 kg
define sales growth + examples
GROWTH RATE - by how much sales are increasing by (depends on actual level of sales)….-
- if market is fast-growing, is more likely the manager will
set a high sales target for their business. - when a business starts out, can be easy to grow quickly as the numbers involved are so small, however if sales are high to start with it is more difficult to grow quickly - need to sell more to grow more
define market share
- the amount it sells as a % of the total sales of the market
- often given as a target
equation for market share
(sales of this product / total market sales) X 100
what would it mean for the manager if an objective has been set in terms of maintaining market share?
means the marketing manager needs to increase its sales at the same rate as competitors
managers want a high market share because it suggests what?
- HIGH SALES - profit? depending on costs
- HIGH OUTPUTS - may give the business power over suppliers and other partners which may enable them to negotiate better deals in terms of lower prices/better quality (may be able to benefit from economies of scale)
- HIGH PROMINENCE IN THE MARKET - may raise profile of business, strengthen the brand, make launching new products easier (enhance their rep)
define brand loyalty
how likely customers are to return to the business
how can brand loyalty be used in the future?
brands are valuable and can be sold - the more brand loyal customers are (stronger the brand loyalty), the more it may be possible to gain from the sale (brand loyalty evidences a businesses good rep)
