M1

• What are some marketing objectives? (SMMMB)


  Sales volume and value

  Market size

  Market share

  Market and sales growth

  Brand loyalty
• what is marketing?


  the management process responsible for identifying, anticipating and satisfying customer requirements profitably
• what activities does marketing involve?

  • market research
  • setting prices
  • designing and using promotion
  • Designing the product and packaging
  • Deciding where to sell the goods
  • Customer service
• what are the three main purposes of marketing?


  anticipating customer wants

  satisfy customer wants

  meet the needs of the business
• What is the value of setting marketing objectives?


  to determine what they must do in their marketing strategy to help achieve their overall company objectives
• what is a marketing objective?


  Goals or targets of the marketing department. must be in line with overall corporate objectives
• what is the market size?


  total volume of sales of a product or value of sales of a product
• what is the sales volume?


  measures number of items sold/produced
• what is sales value?


  financial worth of items sold
• how can market size increase?


  convincing consumers to BUY MORE or PAY MORE for the same amount
• what will a large market size attract? (negative) how do firms avoid this?


  competitors so firms will prefer to operate in niche markets
• what are some other marketing objectives?


  • increase size
  • survival + security
  • inc product awareness
  • launch new products
  • differentiate (USP, stand out from rivals)
  • add value to existing products
• what is sales growth?


  % change in sales (vol or value) over a period of time for a specific brand
• what is market growth?


  % change in sales (vol or value) over a period of time for a whole market
• how do you work out sales and market growth?


  new- old/ old (x 100)
• what markets do firms want to enter and why?


  markets that are growing TO MAXIMISE SALES
• Market growth attracts…. and can be difficult to achieve so what may firms set targets to do?


  rivals. to move into growing markets by targeting new consumers, developing new products or by diversifying
• give an example of a company which is diversifying?

  Microsoft moving into mobile phone market
• What factors effect market growth?- economic growth explain


  economic growth

  • if economy growing, pay rises and consumers have more disposable income-> better sales (opposite for when economy in decline but goods that focus on low prices may see sales increase)
• what factors affect market growth?- type of product-explain


  luxury products will increase when economy growing and suffer when consumer worried about their spending
• what factors affect market growth?- social change- explain


  social change- changes in publics behaviour

  e.g- consumers spending more time at home combined with low supermarket drink prices will result in a decline in pubs but rise in pay-for-TV services (e.g.sky). An increase in working hours make consumers cash-rich but time poor so a demand for convenience products (ready meals)
• What factors affect market growth?- demographic changes-explain


  Make up of the population, the UK has an aging population, change in popularity of products
• what factors affect market growth?- changes in trends + fashion- explain


  trends on TV such as cookery or mobile popularity causing app sales growth

  firms influence what is popular and so market growth through their own marketing efforts
• what are the 5 factors affecting market growth?


  social changes

  economic growth

  type of product

  demographic changes

  changes in taste and fashions
• Brand: the set of….?


  physical attributes of a product or service together with the beliefs and expectations surrounding it- the name/logo should evoke this in the mind
• What is a brand designed to do? 


  differentiate a company from its rivals
• what can a brand be represented by?

  a name, logo, slogan
• what is brand loyalty?


  the degree of attachment a consumer has for a brand
• loyal customers are more likely to make…..?

  repeat purchases and less likely to switch to rivals
• Is it cheaper to retain or attract customers?


  its cheaper to retain existing customer than attract new ones

  !still much debate around this!
• what is brand loyalty essential for?


  repeat purchases

  spend less on promotions

  charge higher prices as it reduces the brands elasticity (the amount demand changes as prices change)- consumers are more committed to the brand and willing to pay more
• what is brand elasticity?


  the amount demand changes as price changes
• What are some external factors that influence marketing objectives and decisions?

  Political, economic, social, technological, ethical, environmental, competitor actions, state of the market and customer expectations
• How do political and legal factors impact marketing?


  Government policies can restrict marketing practices, such as advertising bans on unhealthy foods during children's TV
• What is the effect of economic factors like growth or decline on marketing decisions?


  Economic conditions influence disposable income and interest rates, affecting borrowing and available marketing funds
• How do social trends and demographic factors influence a company's objectives?


  They shape consumer preferences and expectations, impacting marketing strategies
• What role does technological change play in marketing?


  Technological advancements, such as social media and apps, influence how companies market and how rivals compete
• How do ethics and environmental concerns affect consumer behavior in marketing?


  Consumers may care about ethical practices and environmental impact, which can influence pricing strategies
• What does the state of the market indicate for marketing objectives?


  The state of the market can determine whether a company focuses on growth or survival strategies
• How do competitor actions influence marketing decisions?


  The intensity of rivalry among competitors can shape marketing strategies and objectives