3.3.1 Flashcards
Setting marketing objectives (23 cards)
What is marketing?
The business function that provides the link between the business and the consumer. It involves identifying, anticipating and satisfying customer requirements profitably.
List 4 activities that are performed by the marketing function.
- Market mapping
- Product placement
- Advertisements
- Discounts
- Media
- Research demographics
What does the process of making a marketing decision involve? (7 steps)
- Setting marketing objectives
- Understanding what customers want and can afford
- Understanding market conditions
- Understanding the strengths of the business against its competitors
- Working out the best ways to meet customer needs profitably
- Implementing marketing decisions
- Review of marketing decisions and implementation
What is a marketing objective?
A target/goal of the marketing function in an organisation to be achieved in a given period of time.
List 3 values of setting marketing objectives.
- Aligned with corporate objectives
- Provides a focus
- Can help identify priorities and allocate resources
- Way of measuring marketing activity performance
- Helps coordinate business activities
- Valuable to other functions
What is sales value?
Measures the financial worth of the items sold (£)
What is sales volume?
Measures the number of items sold or produced
What is market growth?
The percentage change in sales (value or volume) of a generic product or service over a given period of time
What is sales growth?
The percentage change in sales (value or volume) for a specific business or product over a period of time
What is the formula for percentage growth (market/sales)?
difference
————— x 100
original
What is market share?
The percentage of the total sales of a product or service achieved by a firm or a specific brand of a product
What is the formula for market share?
sales of product
————————- x 100
total market sales
What is market size?
The volume or value of total sales of a product. This indicates the potential sales of the firm
What is the formula for market size?
Number of units sold x price
What is the formula for market share when market share of one product is given?
revenue of product
—————————- x 100
percentage given
What is brand loyalty?
A measure of the degree of attachment that a consumer has for a particular brand of product
List 3 reasons why brand loyalty is important
- Quicker
- Cheaper
- Promote word-of-mouth recommendation
- To get a profit and grow
List 4 ways in which businesses try to encourage brand loyalty
- Membership/loyalty cards
- Large product range/services offered
- Discounts
- Good customer service
List 3 reasons why customers are becoming less loyal to a particular brand?
- Performance decline
- Market sizes are increasing (so more competitors)
- Poor quality products/services
- Higher prices
Under what circumstances would a business need to focus on market positioning? (List 2)
- Encourage shareholders to invest
- Better brand recognition
- Appeal to new markets
Under what circumstances would a business need to focus on survival? (List 2)
- New business
- If they are a luxury brand and a recession is ongoing
Under what circumstances would a business need to focus on innovation/a larger product range? (List 2)
- Build brand loyalty
- Help meet all customer needs
- Appeal to all demographics
Under what circumstances would a business need to focus on ethical and environmental objectives? (List 2)
- Gain good reputation
- Due to pressure from focus groups
- New environmental legislation introduced
