Download The value of setting marketing objectives

The value of setting marketing
objectives
• Businesses must set marketing objectives to determine what they must do in
their marketing strategy to help achieve their overall company objectives.
• Marketing objectives: The specific goals/targets of the marketing department.
They must be in line with the firm’s overall corporate objectives.
Discuss potential examples of marketing objectives a firm may set.
Increase sales volume and sales value
Brand image and awareness
Market and sales growth
Increase market share
Build brand loyalty
1
What are the similarities and
differences between these 2
markets?
What do you think are the marketing objectives of these two
businesses?
Marketing Objectives
• Marketing objectives are likely to be informed by research and
potentially constrained by budgets
• Marketing objectives may focus on:
• Sales volume and value
• Market size
• Market and sales growth
• Market share
• Brand loyalty
Sales volume and sales value
Would it be
possible for a
business to set
an objective to
increase sales
value whilst
reducing sales
volume?
• Sales volume is the amount of sales expressed as a number of
units sold
• e.g. 20 tonnes of wool
• Sales value is the amount of sales expressed as the total sum of
money spent by consumers
• e.g. £3 million expenditure on clothing
With reference to the supermarket and retail industries explain what is meant by the terms
sales volume and sales value.
Market size
• Total sales value or sales volume in a given market
• Market size can be calculated as:
• Number of units sold x price
• e.g. If there are 2 million cars sold at an average price of £15 000 then the
market size is (2 million x £15 000) £30 billion
Market and sales growth
• The percentage increase in the size of the market by value or
volume over a period of time
• Growth can be calculated as:
• Change in size of market/original size x100
• e.g. If the fashion market grows from £30 billion to £33 billion it
has grown by (£3 billion /£30 billion) x 100) 10%
What is the growth in the automotive industry forecast to
be between 2012 and 2017?
Market share
• The proportion of total market sales that a firm has
• Market share can be calculated as:
• Business A sales/market sales x 100
Analyse the benefits to a firm such
as Facebook of increasing market
share.
Why might any business set an
objective of maintaining or
increasing market share?
Marketing objectives
• Brand loyalty exists when customers keep returning to buy a
recognised brand
• Branding is a promotional method that involves the creation of an
identity for a business that distinguishes it and its products from
competitors
Activity
EasyGym is run in the same way as EasyJet. Customers are offered a
very basic, low-cost service at a very low price. EasyGym is an
example of how much an organisation’s corporate aims can limit its
scope for marketing strategies. Its philosophy is based on minimising
costs through eliminating unnecessary expenditure. This allows the
firm to charge low prices to customers. Marketing costs must also be
minimised. Ryanair and Primark are companies that operate on a
similar philosophy.
1.
Select two marketing objectives that you believe would be
unsuitable for budget companies such as Easy jet/Ryanair. Explain
why you believe this.
2.
Select three marketing objectives that you believe would be
suitable for budget companies such as Easy jet/Ryanair. Explain
why you believe this.
Marketing objectives: Group activity
In pairs you must decide on a new company. Some ideas could include, a
T-shirt or clothes brand, mobile phone and tablet or PC firm, drinks
company, etc.
Group tasks:
1.
Decide on a brand name and company type.
2.
Who would your main rivals be?
3.
Decide who the target audience would be and why
4.
What would your marketing objectives be? Set at least 5.
5.
What marketing methods would you use to reach and appeal to your
target audience and establish brand loyalty?
Research task: Research online the cost of retaining customers compared
with attracting new customers.