Business unit 3

• What is the broad objective of a marketing department?


  To increase sales
• What does sales volume refer to?

  The amount of units sold
• How is sales value different from sales volume?

  Sales value looks at the monetary value of sales
• What is sales growth typically measured as?

  The percentage increase over a certain period
• If a business wants to increase its sales value by 20% year on year, what type of objective is this?

  Sales growth objective
• Why might a marketing department want to stimulate market growth?

  To increase overall sales as the market expands
• What does brand loyalty imply about price elasticity of demand?

  It likely becomes more inelastic
• How does increased brand loyalty affect revenue when prices are raised?

  Higher revenue can be achieved due to inelastic demand
• What are the two types of influences on marketing objectives?

  Internal and external influences
• What internal factor can drive marketing department objectives?

  The mission statement or core objectives
• How can the finance department influence marketing objectives?

  By imposing resource constraints
• If the operations department faces production issues, what might a marketing department shift its focus to?

  Brand loyalty instead of sales growth
• How can external competition influence marketing objectives?

  It may necessitate increased marketing efforts
• What might happen to marketing objectives during an economic boom?

  Focus may shift to aggressive sales growth
• How do consumer incomes affect marketing objectives?

  Increasing incomes may lead to a focus on brand loyalty
• What effect do lower interest rates have on consumer behavior?

  They may encourage more consumer spending
• What demographic changes might influence marketing objectives?

  Changes in population age, income, or preferences
• How can ethical changes impact marketing objectives?

  They can lead to adjustments in marketing strategies
• What are the key marketing objectives a department might focus on?

  • Increase sales volume
  • Increase sales value
  • Achieve sales growth
  • Increase market share
  • Stimulate market growth
  • Create brand loyalty
• What are the internal influences on marketing objectives?

  • Mission statement
  • Core objectives
  • Resource constraints from finance
  • Production issues from operations
  • Skilled labor availability from HR
• What are the external influences on marketing objectives?

  • Competition
  • Economic conditions (boom or recession)
  • Consumer incomes
  • Interest rates
  • Demographic changes
  • Ethical considerations
• What is quantitative data primarily concerned with?

  Data expressed in numbers
• What are some examples of quantitative data?

  Sales figures, government reports, and surveys using the Likert scale
• What is the Likert scale used for?

  To convert opinions into numerical data
• What are the advantages of quantitative data?

  It is easier to gather, quicker to analyze, and allows for statistical analysis
• How does quantitative data facilitate decision-making?

  It allows for statistical analysis and easier interpretation of results
• What is a disadvantage of quantitative data?

  It tends to focus on narrow or closed questions
• What types of questions does quantitative data focus on?

  Who, what, and when
• What is qualitative data primarily expressed in?

  Words
• What are some methods of collecting qualitative data?

  Interviews, focus groups, and observations
• What is an advantage of qualitative data?

  It provides in-depth analysis and understanding of issues
• How does qualitative data enhance understanding of issues?

  By allowing focus on how and why, in addition to who, what, and when
• What is a disadvantage of qualitative data?

  It is slower to gather and difficult to analyze
• Why is qualitative data harder to make business decisions from?

  Because it consists of large amounts of data that are difficult to interpret
• What is market mapping used for?

  To analyze competition in a specific market
• What are the common variables used in market mapping?

  Price and quality
• In the airline market, how would you plot price and quality on a market map?

  Price on one axis and quality on the other axis
• What does a market map reveal about competition in the airline market?

  • High price and high quality quadrant is saturated
  • Many companies provide similar high-quality services
  • Indicates potential challenges for new entrants
• What does a saturated market imply for new businesses?

  It may lead to lower sales due to high competition
• Why might entering the high quality low price gap be financially unfeasible for a business?

  High quality suggests high costs, while low price may lead to low revenue