Setting Marketing Objectives

Question 1

What is marketing

Answer 1

The marketing function of a business provides the link between the customer and the business.

Question 2

What is relationship marketing

Answer 2

Attempts to build long term partnerships with customers, it aims to retain customers and build the connections with the business.

Question 3

The process of marketing decision making

Answer 3

• Setting marketing objectives.
• Understanding what customers want and can afford.
• Understanding the conditions in the market.
• Understanding what the capabilities and strengths of the business are relative to competitors.
• Understanding how best to deliver the benefits that customers are willing to pay for.
• Implementing marketing decisions.
• Reviewing.

Question 4

The marketing process

Answer 4

• Set marketing objectives.
• Analyse marketing data.
• Make marketing decisions.
• Implement decisions.
• Review.

Question 5

What are marketing objectives

Answer 5

The targets set for the marketing activities of a business.

Question 6

Marketing objectives examples

Answer 6

• Sales volume.
• Sales value.
• Sales growth.
• Market share.
• Brand loyalty.

Question 7

Sales volume and Sales value targets

Answer 7

• Sales value- The value of sales is measured in terms of how much is spent on a product.
• Sales volume- The volume of sales is measured in terms of the number of units sold.

Question 8

Sales growth targets

Answer 8

• Managers will not just set targets for a given level of sales volume or value, they will also want to measure how much they are increasing.
• The rate of growth expected expected will depend on many factors.
• If the market is growing slowly it may be more difficult for a manager to increase the growth of sales.

Question 9

Market share

Answer 9

• The market share of a product measures the amount it sells as a percentage of the total sales of the market.
• Market share is often given as a target rather than the absolute level of sales because it reflects what is happening in the market overall.
• If an objective had been set in terms of maintaining market share this would mean the marketing manager needs to increase sales at the same rate as competitors.

Question 10

Why would managers want a high market share

Answer 10

• Suggests relatively high sales and therefore profit.
• Suggests relatively high output.
• Suggests relatively high prominence in the market.

Question 11

Brand loyalty

Answer 11

• Retaining customers is often an important aspect in marketing.
• Keeping customers is easier and cheaper than having to attract new ones.
• Brands are also valuable and may be sold later- the stronger the loyalty the more it may be possible to gain from the sale.

Question 12

The value of setting marketing objectives

Answer 12

• The value of setting marketing objectives is that it helps to coordinate activities within the business.
• If the objectives are clear it helps to clarify what the priorities are and how everyone is contributing to the overall target.
• They will also be valuable to the other functions, as they will determine other decisions.

Question 13

Internal influences on marketing objectives

Answer 13

• Finance.
• Human Resources.
• Operations.
• Existing position.
• Overall strategy and business objectives.

Question 14

External influences on marketing objectives

Answer 14

• The political and legal environment- Determines what is allowed by law.
• Economic change.
• Social change- This is affecting customers views of what is acceptable and what they expect from product and a producer.
• Technological change- This is affecting how businesses communicate with customers.
• The competitive environment- The degree of competition in a market affects the range of options open to customers and what a business might have to offer to match its rivals.