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37 Cards in this Set
- Front
- Back
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Marketing |
Identifying, anticipating and satisfying customer needs, profitably. |
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Objectives |
Statements of specific outcomes that are to be achieved. |
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Mission |
The overall purpose of the business |
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Vision |
The overall aspiration of the business, more specific. |
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Aims and goals |
General statements of what the business intends to achieve, even more specific. |
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Corporate objectives definition |
Relate to the business as a whole. |
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Raising finance functional change |
Investment in new products |
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Introducing quality assurance and lean production functional change |
Improved product quality and profitability, as well as efficiency |
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Training programme for staff functional change |
Improved quality of customer service |
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Specific production allocated for a new customer functional change |
Expanded product distribution and increased sales |
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Value of setting marketing objectives |
Ensure functional activities are consistent with corporate objectives Provide a focus for marketing decision making and effort Incentives for marketing team and measure of success / failure Establish priorities for marketing resources and effort |
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Fast changing external environment problems |
Changes in legislation that impact the whole market such as alcohol advertising regulations. New competitors that could overthrow your advertising or use specific details you use. |
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Conflict between marketing objectives problems |
Trying to increase market share by cutting prices could damage objectives for brand perception - may get a poor quality image. |
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Being too ambitious with marketing objectives problems |
Growing market share without putting in necessary resources to achieve it. |
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Maintaining or increasing market share |
Achieve revenue growth of 20% per year for the next 4 years. Increasing market share in the UK by 5% by 2017. Add 1000 new customer accounts generating at least £100,000 per account within the next 4 years. |
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Developing new products / innovation |
Launch at least 25 new products onto the industrial channel in 2016/17. Grow average first year sales of new editions by 25% in the Higher Education sectors. |
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Meeting the needs of customers |
Achieve at least 95% excellent customer service rating each month. Increase proportion of sales booking from repeat business to 45% for the summer season. |
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Entering a new market / marketing positioning |
Supply minimum 50,000 trial downloads per month. Increase number of customer enquiries from EU by 10,000 per month. Recruit 5 distribution agents in 4 target countries within 12 months. |
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Gaining an advantage over competitors |
Reduce average distribution costs to less than 5% of gross revenue. Reduce order lead time by 15%. Improve brand recognition amongst 25-34 age group. |
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Internal influences on marketing objectives |
Corporate objectives Finance Human resources Operational issues Business cultures |
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Corporate objectives |
Most common internal influence. Marketing objectives should not conflict with corporate objectives. |
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Finance |
Financial position directly affects scope and scale of marketing activities. |
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Human resources |
Quality and capacity of the workforce is a key factor, especially in services businesses. Motivated and well trained workforce can deliver market leading customer service and productivity to create competitive marketing advantage. |
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Operational issues |
Key role in enabling business to compete on cost. Effective capacity management determines whether a business can reach its revenue objectives. |
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Business culture |
Marketing orientated businesses are constantly looking for ways to meet customer needs. Production orientated businesses may result in management setting unrealistic or irrelevant marketing objectives. |
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External influences on marketing objectives |
Economic environment Competitor actions Market dynamic Technological change Social and political change |
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Economic environment |
Key factor in determining demand. Marketing objectives are changed as a result of a recession. Exchange rates would impact objectives concerned with international marketing. |
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Competitor actions |
Need to take account of likely competitor response. Objective of increasing market share means competitor response will not be effective. |
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Market dynamics |
Market size, growth and segmentation. Markets with slow growth less likely to support objective of significant revenue growth or new product development. |
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Technological change |
Many markets are affected by rapid technological change, shortening product life cycles and creating great opportunities for innovation. |
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Social and political change |
Legislative changes may create or prevent marketing opportunities. Changes in the structure and attitudes of society have major implications for many markets. |
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Market size |
Indicates potential sales for a firm. Measured in terms of both volume (units) and value (sales). Size of individual segments within a market can also be measured. Not normally a marketing objective as a firm cannot influence it. |
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New figure after percentage change formula |
% change x previous figure ---------------------------------------- + previous figure 100 |
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Market growth |
Indicator for existing and potential market entrants. Growth rate calculated using either volume (units) or value (sales). |
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Market growth formula (volume) |
Change in units sold ------------------------------ x100 Units sold last year |
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Market share |
Explains how overall market is split between existing competitors. Calculated based on market value but volume can also be used. Indicator of competitive advantage. Look for significant +/- changes. |
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Market share in % (sales) |
Sales --------------------------------- x100 Total cumulative sales |
