3.3.1 Setting marketing objectives

• What is the point of marketing?

  To make your product known

  To inform others about your product

  Create a brand reputation

  Sell products

  Compete with competitors
• What are the functional areas of a business?

  Marketing

  Finance

  Operations

  Human Resources
• Marketing is the function of a business providing the link between the customer and the business
• What is the marketing process?

  Set marketing objectives

  Analyse marketing data

  Make marketing data

  Implement decisions

  Review
• The review part of the marketing cycle as you can learn from past mistakes and make better decisions in the future
• A customer centric company is where the customer is put on the centre of the business where they put their main focus onto the needs of the customer over the company's needs
• Objectives are statements of specific outcomes that are to be achieved by the business.
• Spending more on advertising the product increases reputation and sales as the brand is reaching a wider audience
• Marking the product the product as ethical and high quality can be done by introducing quality assurance and lean production
• By introducing a training program for staff will result in a higher quality product and improves customer service overall improving brand reputation
• What is the value of setting objectives?

  Functional activities consistent with corporate objectives

  Provide a focus for marketing

  Establish priorities for marketing resources and effort

  Provides a measure for marketing teams
• What is sales and volume as a marketing objective?

  Volume --> the amount of sales expressed as a number of units sold

  Value --> the amount of sales expressed as the total sum of money spent by consumers
• What is market size as a marketing objective?

  The total number of potential customers or the total revenue potential of a market, it can be calculated by

  number of units sold x price
• What is market sales and growth as a marketing objective?

  --> the percentage increase in the size of the market by value or volume over a period of time

  --> can be calculated as:

  (change in size of market/original size) x 100
• What is market size as a marketing objective?

  --> proportion of total market sales that a firm has

  --> calculated as :

  (business a sales/market share) x 100
• What is brand loyalty as a marketing objective?

  --> Exists when customers keep returning to buy a recognised brand

  --> Branding is as promotional method that involves the creation of an identity for a business that distinguished it and its products from competitors
• Marketing objectives need to be consistent with and support corporate objectives; it goes corporate objective to marketing objective to unit objective. They are all functional objectives.
• What are some internal impacts of marketing?

  Budgets

  Staff retention

  New machinery

  Organisational structure
• What are some external impacts on marketing?

  Rises in taxes

  Environmental laws

  Interest rates

  Competition
• The purpose of market research is to gather information. This will enable the business to be informed in its decisions and so reduce the risk of failure
• Customers differ in terms of?

  Benefits they want

  Amount they are able or willing to pay

  Media they see

  Quantities they buy

  Time and place that they buy
• What is the purpose of market research?

  Identify and understand customer needs

  Identify market opportunities

  Gain insight into competition

  Informs businesses decisions
• What is provided by market research?

  Market info eg. size/structure

  Competition

  Customer type

  Market segments
• Primary research is data collected first hand for a specific research purpose
• Secondary research data that already exists that has been collected for a different purpose
• Examples of primary data sources?

  Observations

  Postal surveys

  Focus groups
• Examples of secondary data sources?

  Trade press and magazines

  Government departments

  Google
• What are the benefits of primary research? - It is more accurate than secondary research - It is more relevant than secondary research
• What are the benefits of secondary data?

  Cost-effective, time-saving, and readily available.
• What are the drawbacks of secondary data?

  Validity, reliability, and relevance.
• What are the drawbacks of primary data?

  Time-consuming, expensive, potential for bias, limited sample size.