Setting Marketing Objectives

Define marketing

The process of understanding customers and findings ways to provide products of services which customers demand, in order for a business to achieve its corporate objectives.

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Define marketing objectives

The goals of the marketing function in an organisation which contribute to corporate objectives.

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Examples of marketing objectives

Sales volume, sales value (financial worth of items sold), market size, market growth, market share, sales growth and brand loyalty.

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Benefits of setting marketing objectives?

decisions by different staff are consistent, provides clarity, increase team work, allow improvements to efficiency, motivational, enables employees to recognise their own priorities.

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Drawbacks of setting marketing objectives?

external changes are not easy to predict, objectives can conflict, may be unclear priorities, may not have sufficient resources or marketing budget, can decrease motivation.

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External influences on marketing objectives and decisions

Market factors (growth or decline of a market), Competitors actions+performance, Technological change, Economic factors (growth or recession + interest rates), Ethics and environmental factors, Suppliers.

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Internal influences on marketing objectives and decision

Business/corporate objectives, finance, HR, operational issues, resources available, nature of the product.

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Define sales volume and its calculation

Measures the number of items sold or produced. Total Value / Quantity

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Define sales value and its calculation

Measures the financial worth of the items sold. Volume X Average Price

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Define market size and its calculation

The volume of sales of a product or the value of sales of product. Total sales in the market X Selling price.

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Define market growth and its calculation

The % change in sales of a generic product or services over a period of time. Market size in year / Market size in previous year X 100

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Define market share and its calculation

The % of proportion of the total sales of a product or services achieved by a firm or a specific brand of a product. Sales of one firm / Total sales in the market X 100.

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Define sales growth and its calculation

The % change in sales for a specific business or product over a period of time. Sales in that year / Sales in the previous year X 100.

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Setting Marketing Objectives

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