mr sim-topic 3, marketing objectives

Question 1

what is a market

Answer 1

is a place where buyers and sellers meet 
types of markets 
- local market 
-national market/ international 
-physical market 
- digital market

Question 2

what is a marketing objective

Answer 2

targets that a company’s marketing department set itself - they are valuable - help the company to achieve its overall objective
they focus on sales

Question 3

what is sales volume and sales value

Answer 3

sales volume; number of units sold over a certain period of time - easy to visualise - doesn’t tell you anything about the money coming in from sales
sales value; businesses that sell a lot of differently priced items e.g. supermarkets is about the sales that have been purchased over a year

Question 4

what is sales growth

Answer 4

is the amount of sales volume and sales value that a business wants to increase in - known as sales growth also can be trying to increase sales revenue. aim for a certain percentage growth in sales

Question 5

what is market share

Answer 5

the percentage of sales in a market made by one firm or brand - common objective to increase their market share by a certain amount- useful can compare their share of the market to their competitors - to increase market share need to entice customers away from competitors or attract brand new customers in growing market

Question 6

what is brand loyalty

Answer 6

holding on to existing customers rather than just attracting new ones - social media is a good way of doing this allows customers to attract with the business

Question 7

marketing objectives influenced by internal factors

Answer 7

1) corporate objectives - marketing department has to make sure that all the objectives the have been set needs to be achieved and makes a link with the overall company goals e.g. business wants to increase profits in the short term - no point of the marketing department focusing on the new products that is going going to be launched
2) finance - finance department allocates the business budget - affects the marketing department and what they will be able to do. if budget gets cut down - marketing objectives may need to be cut down
3) human resources - HR this department sorts out the staff needed in the business. if HR reduces or increases the amount of workers in the company it will effect the marketing department as they will need to adjust its objectives to match what is achievable with the staff levels

Question 8

marketing objectives influenced by external factors

Answer 8

1) market - the state of the economy has a bug impact on marketing objectives. economic boom = department should try to increase sales volume since income levels have been increased. recession = department might set objective to increase market share
2) technology - in markets where technology changes fast - MO (marketing objective) tend to be focused on sales and piece - new tech causes prices to rise or drop very fast
3) competitors - actions of competitors affect marketing objectives - especially in a highly competitive market - if competitor has low prices - marketing department will need to make a new business strategy to make their prices similar to their competitors - s to compete with price
4) ethics and environmental factors- ethical and environmental awareness is increasing as consumers are interested in companies are behaving in terms of harming the planet. damaging the environment = destroying the companies brand.

Question 9

laws affect the marketing objectives

Answer 9

government regulation have a direct impact on the objectives pf the marketing department:

1) predatory pricing - is cutting prices to force a competitor out of business- is illegal in the EU and the US
2) trade description act - regulates promotion- businesses cant lie about their product
3) advertising some products are restricted e.eg prescription medicines cant be advertised to the public