TEXTBOOK: UNIT 3 – DECISION MAKING TO IMPROVE MARKETING PERFORMANCE
Chapter7 – Setting Marketing Objectives
Marketing
• The purpose of marketing is to meet the needs of customers and the organisation
• Marketing aims to satisfy or ideally delight customers so they want to come back for
more
• Is about building a relationship with customers so they are loyal to your organisation
and so they end up buying more overtime
• It involves choosing the right market
• It involves developing better product offerings that rivals and being able to
communicate and deliver this
• Is a Science = Data driven and decisions area based on evidence
• Is an Art = Creative element to it – communicating the benefits of the product
Business makes a Customer experiences
profit good value for money
What is a Market?
• Occurs when there are buyers and sellers
• There are markets for different products: housing, holiday, clothing…
• The nature of markets vary depending on products and services
• Examining the particular characteristics of the market is known as ‘market analysis’
The Marketing Process:
1. Setting marketing objectives
2. Understanding what customers want and can afford
3. Understanding the conditions in the market
4. Understanding the capabilities and strengths of the business are relative to
competitors
5. Understanding best way to deliver the benefits that customers are willing to pay for
and in ways where the business profit
6. Implementing marketing decisions
7. Reviewing
Business ethics = Refers to whether a business decision is perceived as morally right or
wrong
Marketing Objectives
Marketing objectives are the targets set for the marketing activities of a business, function
or department
• Should be specific in terms of numerical target and time specific
• Depend on the aims and priorities of an organisation
, TEXTBOOK: UNIT 3 – DECISION MAKING TO IMPROVE MARKETING PERFORMANCE
Include…
1. Sales Value & Sales Volume
Value = How much is spent on a product
Volume = Number of units sold
2. Sales Growth Targets
The % change in sales volume or value over a given period
3. Market Share
Measure the amount the product sells as a % of the total sales of the market
Managers may want a high market share because this suggests…
→ High sales = More profit
→ High output = Power over competitors
→ High prominence in market = Raise profile of business + strengthen the brand
4. Brand Loyalty
Easier and cheaper than attracting new customers especially when wanting to build
relationships
The Value of Marketing Objectives:
✓ To act as a focus for decision making and effort
✓ To provide a target against which success or failure can be measured
✓ To improve co-ordination, by giving teams and departments a common purpose
✓ To improve efficiency, by examining the reasons for success and failure in different
areas
✓ To motivate staff and improve their performance by setting challenging but realistic
targets
✓ To establish priorities, so that staff understand the relative importance of different
objectives
Drawbacks of Marketing Objectives:
Fast changing external environment
Potential conflict between marketing objectives
Easy to be too ambitious with marketing objectives
Internal Influences of Marketing Objectives
1. Finance
2. Human Resources
3. Operations
4. Existing position
5. Overall strategy and business objectives
Finance:
• The amount of promotional activity to make customers aware of the product
benefits that can be undertaken may be limited by finance
• Market research costs
• Advertising costs
, TEXTBOOK: UNIT 3 – DECISION MAKING TO IMPROVE MARKETING PERFORMANCE
Human Resources:
• The employees of the business – This may affect the quality of design or customer
service or the range of services that can be provided, and therefore the level of sales
Operations:
• The amount a business can produce (capacity of a business) …
• If a business has a certain capacity, it cannot set a sales target for more than this
unless it outsources some of its production
Existing Position:
• Setting realistic objectives in relation to how the business is performing
Overall strategy and business objectives:
• The business targets
• Ambitious and optimistic managers may set more demanding objectives
External Influences of Marketing Objectives
PEST-C
1. Political/Legal
2. Economic change
3. Social
4. Technological
5. Competition
Chapter7 – Setting Marketing Objectives
Marketing
• The purpose of marketing is to meet the needs of customers and the organisation
• Marketing aims to satisfy or ideally delight customers so they want to come back for
more
• Is about building a relationship with customers so they are loyal to your organisation
and so they end up buying more overtime
• It involves choosing the right market
• It involves developing better product offerings that rivals and being able to
communicate and deliver this
• Is a Science = Data driven and decisions area based on evidence
• Is an Art = Creative element to it – communicating the benefits of the product
Business makes a Customer experiences
profit good value for money
What is a Market?
• Occurs when there are buyers and sellers
• There are markets for different products: housing, holiday, clothing…
• The nature of markets vary depending on products and services
• Examining the particular characteristics of the market is known as ‘market analysis’
The Marketing Process:
1. Setting marketing objectives
2. Understanding what customers want and can afford
3. Understanding the conditions in the market
4. Understanding the capabilities and strengths of the business are relative to
competitors
5. Understanding best way to deliver the benefits that customers are willing to pay for
and in ways where the business profit
6. Implementing marketing decisions
7. Reviewing
Business ethics = Refers to whether a business decision is perceived as morally right or
wrong
Marketing Objectives
Marketing objectives are the targets set for the marketing activities of a business, function
or department
• Should be specific in terms of numerical target and time specific
• Depend on the aims and priorities of an organisation
, TEXTBOOK: UNIT 3 – DECISION MAKING TO IMPROVE MARKETING PERFORMANCE
Include…
1. Sales Value & Sales Volume
Value = How much is spent on a product
Volume = Number of units sold
2. Sales Growth Targets
The % change in sales volume or value over a given period
3. Market Share
Measure the amount the product sells as a % of the total sales of the market
Managers may want a high market share because this suggests…
→ High sales = More profit
→ High output = Power over competitors
→ High prominence in market = Raise profile of business + strengthen the brand
4. Brand Loyalty
Easier and cheaper than attracting new customers especially when wanting to build
relationships
The Value of Marketing Objectives:
✓ To act as a focus for decision making and effort
✓ To provide a target against which success or failure can be measured
✓ To improve co-ordination, by giving teams and departments a common purpose
✓ To improve efficiency, by examining the reasons for success and failure in different
areas
✓ To motivate staff and improve their performance by setting challenging but realistic
targets
✓ To establish priorities, so that staff understand the relative importance of different
objectives
Drawbacks of Marketing Objectives:
Fast changing external environment
Potential conflict between marketing objectives
Easy to be too ambitious with marketing objectives
Internal Influences of Marketing Objectives
1. Finance
2. Human Resources
3. Operations
4. Existing position
5. Overall strategy and business objectives
Finance:
• The amount of promotional activity to make customers aware of the product
benefits that can be undertaken may be limited by finance
• Market research costs
• Advertising costs
, TEXTBOOK: UNIT 3 – DECISION MAKING TO IMPROVE MARKETING PERFORMANCE
Human Resources:
• The employees of the business – This may affect the quality of design or customer
service or the range of services that can be provided, and therefore the level of sales
Operations:
• The amount a business can produce (capacity of a business) …
• If a business has a certain capacity, it cannot set a sales target for more than this
unless it outsources some of its production
Existing Position:
• Setting realistic objectives in relation to how the business is performing
Overall strategy and business objectives:
• The business targets
• Ambitious and optimistic managers may set more demanding objectives
External Influences of Marketing Objectives
PEST-C
1. Political/Legal
2. Economic change
3. Social
4. Technological
5. Competition
