Marketing is the process of analysing, identifying and satisfying customer needs profitably
Marketing roles:
1. Identifies customer needs and wants
2. Anticipate what customers want in the future so that the business can get one step ahead of the market
3. Covers research, analysis, planning and the marketing mix.
4. Once company has a customer base, marketing helps ensure customers stay loyal to that brand.
Marketing objectives:
Marketing department—> increasing sales (broad objective)
1. Sales volume increase (reach 4000 units by..)
2. Sales value (monentary value of sales) (achieve 500 million sales revenue)
3. Sales growth—> growth in sales of certain volume or value (15% increase in number of..)
4. Market share increase
5. Market size and market growth stimulation
6. Brand loyalty—> decreases Ped—> more inelastic—> less sensitive to increase price—> which can increase
revenue.
Marketing objectives are influenced by internal and external factors:
Internal:
1. Corporate objectives and mission statement: M.D has to ensure its objectives are aligned with company’s overall
goals as these drive the department objectives
2. Departments:
A. Finance: they allocate the marketing budget—> affects what they’re able to do. If cut—> M.O scaled down
B. Human Resources: HR planning identifies how many staff is needed—> if business is reducing/increasing
staffing levels, marketing must adjust objectives to match what is achievable given these staff levlels. Fewer
staff—> capacity decreases.
C. Operations: production issues, might not be able to keep up with volume of sales so need to switch objectives
to etc brand loyalty. (Increase prices?)
External. PESTLE
1. Market: state of economy. Boom= increase ales volume as incomes rising. Recession: maintain market share.
Interest rates—> low—> increases S.V.
2. Technology: in markets with rapid tech change—> M.O focused on sales and price as new tech causes prices to
rise or fall very fast. Eg: price of reg tv fallen since smart tv introduced.
3. Competitors: actions of competitors affect M.O’s. Competitors are focused on low prices—> might alter their
objectives so customers see them as price competitive.
4. Ethics and environmental or demographic changes : increasing amongst consumers, behaving in harmful way can
ruin brand image. Ensure packaging is not damaging and they are communicating how ethically and
environmentally conscious they are.
Value of setting marketing objectives-
1. Ensures functional objectives consistent with corporate objectives
2. Provides a yardstick against which success and failure can be measured
3. Focus for decision making, marketing efforts and resources
4. Motivation for marketing team, team work approach
5. Measure marketing activity performance
Problems with setting marketing objectives:
1. Fast changing external environment may affect them
2. Potential conflict between marketing objectives
3. Easy to be too ambitious which can demotivate workers if unachieved.
How does the law affect marketing objectives-
• government regulations
• Predatory pricing is illegal in EU and US
• The trade descriptions act regulates promotions. Can’t lie ab products
• Advertising of some products= restricted
,Market analysis- different ways a market can be classified:
• geographical- location, national, or international
• Nature of product- agricultural, technological
• Seasonality- seasonal or all year round
• Development level- new, growing or saturated
• Product destination- trade, private consumers
• Tells business about market size, market growth, market share
Market formulas used for MARKET ANALYSIS:
Businesses must understand their market:
• Before company sells product—> must understand market they’re operating in
• 1st: if market local, national or international?
• 2nd: online, physical selling?
• 3rd: who’s target market/audience
Identify market—> market analysis( looking at sales growth, market growth, market share and market mapping)—>
decide how to market their products
5 ways to do market analysis:
1. Market size
2. Market growth
3. Market share
4. Sales growth- used to analyze market trends
5. Market mapping
Market size= value or volume
=sum of all sale value in market or sales volume in market (currency or units)
Market growth=
Market size (new) - old/old x100
• Tells business if demand is rising or decreasing
• In a growing markert—> several firms can grow easily
• In a shrinking market—> competition can be heavy—> fewer customers
• Firms can diversify, or just get out of market altogether
Sales growth: used to analyze market trends-
• Marketing department continuously monitor company’s sales growth in certain markets to see where it is gaining
sales and where its losing sales.
• They’re sales growth should be in line or ahead market growth
• If positive—> gaining sales
• They combine its analysis in order to see if they’re achieving marketing objectives.
• A software company has annual increase of 5% in game sales but computer game marker has grown by 15% so
they’re failing to grow at same rate as market hence market share has gone down
=sales this year - last year/last year x100
Market share:
Business sales/total market size x100
• Look at trends in market share and trends in sales revenue
• If market share is decreasing—> competitors are gaining an advantage over you
MARKET MAPPING: compares two features or products or brands
The process of assessing the level of competition in a market by analysing the characteristics of brands in that market.
It’s a tool to analysis competition in a specific market. Eg:
• Low quality vs high quality
• Price
• Basic vs luxurious
• Young customer vs mature
, It’s laid out as a matrix, with products/brand positioned on it.
Uses:
1. Helps businesses spot a gap in the market: can try filling it. Other market research used to see if there’s actually
demand in that gap.
A. For new business: Find gap—> do MR—> if there’s demand—>develop product—> probs low competition—
> hence high sales.
B. For existing business—> change product range and find new segments = reposition
2. Shows business its closest competitors: to plan best market strategy to persuade customers away from them
3. If sales are declining, can be used to find out how customers view their product in order to REPOSITION it on the
map.
4. Identify overcrowded areas and avoid poor investments
5. Can show how much customers expect to pay for a certain product/quality—> helps pricing strategy
:) Simple tool to analyze competitors:
◦ Easy market research too.
◦ Less risk
Disadvantages:
• Simplifies things too much.
◦ Only 2 variables, over-simplistic
◦ Cannot handle complex markets (ETHICAL factors)
• Gaps—> no guarantee of success if demand is low
• Positions of products may be a matter of option (biased)
◦ Different people have different views on whether a product is low/high quality.
◦ No data/statistic used
◦ Influenced by person who did it
◦ Poor accuracy if market map= poor decisions
Market research: is the collection and analysis of market information such as customer likes and dislikes.
1. Helps businesses spot opportunities: researching buying patterns to predict what people will be buying, identify
growing markets to open in, declining markets to get out of
2. Helps businesses decide the next step: M.R before launching product, or an advertising campaign
3. Helps businesses see if plan is working: keeping eye on sales figures, to notice if marketing strategy is having
right effect
Market research to find out: market size, market share and market shares of existing companies and brands
◦ Can see if market share for specific businesses is too high—> dominating—> monopolistic power—> HIGH
EOS and customer loyalty
Uses:
1. Product development
2. Effective promotion
3. Set performance/sales targets
4. Determine production levels
5. Budget allocation
:( can be
1. Expensive
2. Bad market research leads to disastrous business decision
Need to plan carefully to make sure they get max benefit from the market research
Marketing roles:
1. Identifies customer needs and wants
2. Anticipate what customers want in the future so that the business can get one step ahead of the market
3. Covers research, analysis, planning and the marketing mix.
4. Once company has a customer base, marketing helps ensure customers stay loyal to that brand.
Marketing objectives:
Marketing department—> increasing sales (broad objective)
1. Sales volume increase (reach 4000 units by..)
2. Sales value (monentary value of sales) (achieve 500 million sales revenue)
3. Sales growth—> growth in sales of certain volume or value (15% increase in number of..)
4. Market share increase
5. Market size and market growth stimulation
6. Brand loyalty—> decreases Ped—> more inelastic—> less sensitive to increase price—> which can increase
revenue.
Marketing objectives are influenced by internal and external factors:
Internal:
1. Corporate objectives and mission statement: M.D has to ensure its objectives are aligned with company’s overall
goals as these drive the department objectives
2. Departments:
A. Finance: they allocate the marketing budget—> affects what they’re able to do. If cut—> M.O scaled down
B. Human Resources: HR planning identifies how many staff is needed—> if business is reducing/increasing
staffing levels, marketing must adjust objectives to match what is achievable given these staff levlels. Fewer
staff—> capacity decreases.
C. Operations: production issues, might not be able to keep up with volume of sales so need to switch objectives
to etc brand loyalty. (Increase prices?)
External. PESTLE
1. Market: state of economy. Boom= increase ales volume as incomes rising. Recession: maintain market share.
Interest rates—> low—> increases S.V.
2. Technology: in markets with rapid tech change—> M.O focused on sales and price as new tech causes prices to
rise or fall very fast. Eg: price of reg tv fallen since smart tv introduced.
3. Competitors: actions of competitors affect M.O’s. Competitors are focused on low prices—> might alter their
objectives so customers see them as price competitive.
4. Ethics and environmental or demographic changes : increasing amongst consumers, behaving in harmful way can
ruin brand image. Ensure packaging is not damaging and they are communicating how ethically and
environmentally conscious they are.
Value of setting marketing objectives-
1. Ensures functional objectives consistent with corporate objectives
2. Provides a yardstick against which success and failure can be measured
3. Focus for decision making, marketing efforts and resources
4. Motivation for marketing team, team work approach
5. Measure marketing activity performance
Problems with setting marketing objectives:
1. Fast changing external environment may affect them
2. Potential conflict between marketing objectives
3. Easy to be too ambitious which can demotivate workers if unachieved.
How does the law affect marketing objectives-
• government regulations
• Predatory pricing is illegal in EU and US
• The trade descriptions act regulates promotions. Can’t lie ab products
• Advertising of some products= restricted
,Market analysis- different ways a market can be classified:
• geographical- location, national, or international
• Nature of product- agricultural, technological
• Seasonality- seasonal or all year round
• Development level- new, growing or saturated
• Product destination- trade, private consumers
• Tells business about market size, market growth, market share
Market formulas used for MARKET ANALYSIS:
Businesses must understand their market:
• Before company sells product—> must understand market they’re operating in
• 1st: if market local, national or international?
• 2nd: online, physical selling?
• 3rd: who’s target market/audience
Identify market—> market analysis( looking at sales growth, market growth, market share and market mapping)—>
decide how to market their products
5 ways to do market analysis:
1. Market size
2. Market growth
3. Market share
4. Sales growth- used to analyze market trends
5. Market mapping
Market size= value or volume
=sum of all sale value in market or sales volume in market (currency or units)
Market growth=
Market size (new) - old/old x100
• Tells business if demand is rising or decreasing
• In a growing markert—> several firms can grow easily
• In a shrinking market—> competition can be heavy—> fewer customers
• Firms can diversify, or just get out of market altogether
Sales growth: used to analyze market trends-
• Marketing department continuously monitor company’s sales growth in certain markets to see where it is gaining
sales and where its losing sales.
• They’re sales growth should be in line or ahead market growth
• If positive—> gaining sales
• They combine its analysis in order to see if they’re achieving marketing objectives.
• A software company has annual increase of 5% in game sales but computer game marker has grown by 15% so
they’re failing to grow at same rate as market hence market share has gone down
=sales this year - last year/last year x100
Market share:
Business sales/total market size x100
• Look at trends in market share and trends in sales revenue
• If market share is decreasing—> competitors are gaining an advantage over you
MARKET MAPPING: compares two features or products or brands
The process of assessing the level of competition in a market by analysing the characteristics of brands in that market.
It’s a tool to analysis competition in a specific market. Eg:
• Low quality vs high quality
• Price
• Basic vs luxurious
• Young customer vs mature
, It’s laid out as a matrix, with products/brand positioned on it.
Uses:
1. Helps businesses spot a gap in the market: can try filling it. Other market research used to see if there’s actually
demand in that gap.
A. For new business: Find gap—> do MR—> if there’s demand—>develop product—> probs low competition—
> hence high sales.
B. For existing business—> change product range and find new segments = reposition
2. Shows business its closest competitors: to plan best market strategy to persuade customers away from them
3. If sales are declining, can be used to find out how customers view their product in order to REPOSITION it on the
map.
4. Identify overcrowded areas and avoid poor investments
5. Can show how much customers expect to pay for a certain product/quality—> helps pricing strategy
:) Simple tool to analyze competitors:
◦ Easy market research too.
◦ Less risk
Disadvantages:
• Simplifies things too much.
◦ Only 2 variables, over-simplistic
◦ Cannot handle complex markets (ETHICAL factors)
• Gaps—> no guarantee of success if demand is low
• Positions of products may be a matter of option (biased)
◦ Different people have different views on whether a product is low/high quality.
◦ No data/statistic used
◦ Influenced by person who did it
◦ Poor accuracy if market map= poor decisions
Market research: is the collection and analysis of market information such as customer likes and dislikes.
1. Helps businesses spot opportunities: researching buying patterns to predict what people will be buying, identify
growing markets to open in, declining markets to get out of
2. Helps businesses decide the next step: M.R before launching product, or an advertising campaign
3. Helps businesses see if plan is working: keeping eye on sales figures, to notice if marketing strategy is having
right effect
Market research to find out: market size, market share and market shares of existing companies and brands
◦ Can see if market share for specific businesses is too high—> dominating—> monopolistic power—> HIGH
EOS and customer loyalty
Uses:
1. Product development
2. Effective promotion
3. Set performance/sales targets
4. Determine production levels
5. Budget allocation
:( can be
1. Expensive
2. Bad market research leads to disastrous business decision
Need to plan carefully to make sure they get max benefit from the market research
