Topic 3: Decisions to improve Marketing performance Flashcards
1
Q
What is the purpose of marketing?
A
- Identify what customers want and need.
- Anticipate what customers want in the future, to get one step ahead of competitors.
2
Q
What are the four common marketing objectives?
A
- Sales volume/sales value
- Sales growth
- Market share
- Market size/market growth
3
Q
Define brand loyalty
A
Holding on to existing customers rather than just always attracting new ones.
4
Q
Name three internal factors that influence marketing objectives.
A
- Corporate objectives
- Finance
- Human Resources
5
Q
Name four external factors that influence marketing objectives
A
- Market
- Technology
- Competitors
- Ethics and environmental factors
6
Q
How does the law affect marketing objectives?
A
- The ‘Trade Descriptions Act’ regulates promotion so businesses cannot lie about their products.
- Advertising is very restricted, e.g. prescription medicines cannot be advertised.
7
Q
How can a market be classified?
A
- Geography
- Seasonality
- Nature of the product
8
Q
Calculate market growth (%)
A
(new market size - old market size) / old market size x100
9
Q
Calculate market share (%)
A
sales / total market size x100
10
Q
Calculate sales growth (%)
A
(current sales - last sales) / last sales x100
