Marketing Objectives

• Marketing objectives can be related to sales volume, sales value, sales growth, market share, and brand loyalty.
• Setting realistic and relevant marketing objectives helps align the marketing strategy with the overall objectives of the business, and ensures that resources are allocated to achieve these objectives.
• Marketing objectives should help focus the marketing budget and give a way of measuring performance.
• Marketing objectives are often very similar to corporate objectives, particularly in relation to things like market share.
• There are potential downsides to marketing objectives, such as the risk of external factors making them obsolete or harder to achieve, and the potential for conflict between different marketing objectives.
• Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements while being profitable
• What are the three purposes of marketing?

  • Anticipating consumers' wants
  • Satisfying customers' wants
  • Meeting the needs of the business
• Market size is the total volume of sales of a product or the value of the sales of the product
• Sales volume measures the number of items sold
• How can market size increase?

  • Convincing consumers to buy more goods
  • To increase the price of the product
• A large market size will attract many competitors so many firms will prefer to operate in smaller niche markets
• What are examples of marketing objectives?

  • Build brand loyalty
  • Brand image and awareness
  • Increase market share
  • Differentiation (USP)
• Market growth = the rate of increase in the size of the market for a product or service.
• Market growth = (new market size - original market size) / (original market size) x 100
• Sales growth = (new sales - original sales) / (original sales)

  x 100
• Market share = (Total sales of a product in a market by one firm/ Total sales of all products in that market) x 100
• Brand loyalty is a measure of the degree of attchment that a consumer has for a particular brand
• Loyal customers are more likely to make repeat purchases and less likely to switch to rival brands
• Why is brand loyalty important for firms?

  • Customers return for repeat purchases
  • Less spent on promotion as consumers are already convinced to come back
  • Reduces a brand's price elasticity as consumers are more committed