3.3 Marketing Managment

Question 1

What do marketing objectives include?

Answer 1

Sales volume + value
Market share
Market size
Market + sales growth
Brand loyalty

Question 2

What do market objectives link closely with?

Answer 2

Competition
Brand awareness and loyalty
Marketing Mix
Market share
Market growth and size
Corporate objectives

Question 3

What are some external influences of marketing objectives and decisions?

Answer 3

Social
Technological
Competition
Political
HR

Question 4

What is marketing?

Answer 4

Marketing is “the process of identifying, anticipating and satisfying customer needs profitably”

Question 5

What is the decision making cycle?

Answer 5

Set objectives
Analyse situation
Assess resources
Make a clear decision
Evaluate decision

Question 6

What is a marketing objectives ?

Answer 6

A marketing target or goal that an organisation hopes to achieve

Question 7

Why set marketing objectives?

Answer 7

Steer direction of business
Helps coordinate business activity
Motivational target
Increase the profitability of success - decision making is more focused

Question 8

Where do marketing objectives come from?

Answer 8

Marketing objectives must be compatible with overall corporate objectives of the company

Question 9

What is the order marketing objectives should be considered?

Answer 9

Mission
Corporate
Functional
Team
Individual

Question 10

Examples of how marketing objectives might support corporate objectives

Answer 10

Corporate objectives - market share of 10%

Marketing objective - sales per customer of £100

Unit objective - shop sales of £500k +

Question 11

What are smart objectives?

Answer 11

Objectives that are
Specific
Measurable
Attainable
Realistic
Timely

Question 12

What is the value of setting marketing objectives?

Answer 12

Help ensure department stays on track with what business hopes

Objectives must align with corporate objectives

Question 13

What marketing objectives are of value?

Answer 13

Provide focus and direction for marketing activities and strategy of business

Help ensure that the resources of the marketing department are used effectively

Motivate and align ideas

Question 14

What are the functional areas?

Answer 14

Marketing
HR
Operations management
Finance
Administration

Question 15

What are external influences on marketing objectives?

Answer 15

Political and legal environment
Economic change
Social change
Technological change
Competitive environment

Question 16

What are internal influences on marketing decisions?

Answer 16

Business strategy
Ambition of managers
Existing business performance
Capacity of business
Finance

Question 17

What framework should you use when analysing an industry and highlighting specific issues within it?

Answer 17

PEST-C
POLITICAL
ECONOMIC
SOCIAL
TECHNOLICIAL
COMPETITIVE

Question 18

Why might adverse variables occur?

Answer 18

Increase in costs
Increase in demand
New legislations

Less sales
Lower exchange rate
High interest rates

Question 19

What is Cash flow?

Answer 19

A period of time where money flows in and out of the business

Question 20

What is cash flow forecasting ?

Answer 20

Estimating when cash inflows and outflows will occur and how much they will be

Question 21

What is positive cash flow?

Answer 21

More inflows than outflows

Question 22

What is a negative cash flow?

Answer 22

More outflows than inflows

Question 23

What is the importance of cash flow management?

Answer 23

If no adequate availability of cash business can fail

If bills aren’t paid suppliers may refuse to deliver

If staff r not paid they will leave

CF most common reason for business failure

Question 24

Where needs to be shown on a cash flow forecast?

Answer 24

Cash needs and availability

Question 25

What does a cash flow forecast show/help show?

Answer 25

Shows monthly inflows and outflows and helps monitor if months ahead will have enough cash to survive / be stable

Question 26

What are payables?

Answer 26

Money owed to a suppliers by a business

Question 27

What are receivables ?

Answer 27

Money owed to a business by customers who have bought goods on credit

Question 28

What are cash and credit sales?

Answer 28

Business may sell goods and receive cash immediately Although they could sell goods on credit and receive payment at a later date Cash doesn’t show on inflow until the month it will acc be paid to the business

Question 29

Cash flow problems?

Answer 29

If a business continually spends more than it receives it will have negative cash flow Unless it has cash from previous months to fall back on it will shortfall and struggle to pay bills Actions to remedy the problem would need to be investigated

Question 30

What causes Cash flow problems ?

Answer 30

Late payments ( bad debts) Sales are lower than expected Costs r higher than expected Unexpected costs arise Seasonal demands Too much stock ( leaves cash tied up) Allowing customers to pay on credit for long time