Chapter 7 - Setting marketing objectives

Relationship Marketing

an approach to marketing in which a company seeks to build long-term relationships with its customers by providing consistent satisfaction. [focuses on keeping the customers rather than one off sales]

Market analysis

involves examining the particular characteristics of a market such as market size or growth.

Business Ethics

refer to whether the actions of a business decision are perceived as morally right or wrong.

Sales can be measured in terms of:

• Sales value

• Sales volume

Marketing objectives

is a measurable and time specific target set for the marketing function; for example, to increase sales by 10 per cent within 3 years.

Sales value

measures the value of sales in a given period in terms of the amount spent.

Sales volume

measures the value of sales in a given period in terms of units sold.

Market share

measures the sales of one brand or business as a % of total market sales in a given period.

Sales growth

the % change in sales volume or value over a given period.

Market growth

the % change in the total sales in the market over a given period.

Market share formula

sales of this product
——————————— x 100
total market sales

Internal influences on marketing objectives and decisions

factors within the business such as employees and operational resources

External factors on marketing objectives and decisions

factors outside of the business such as the state of the economy.

Globalisation

increasing trade between countries and the growing internationalisation of businesses.