3.1 setting marketing objectives

market def

a forum or place buyers and sellers can exchange goods of services

what is marketing

• the management involved in identifying, anticipating and satisfying customer wants profitably

• involves market research and the promotions of products and services

importance of marketing

• increased competition domestically and internationally

• customers are more price aware

• more innovation

• products have shorter life cycles

• higher demand

• ecommerce

• social media

characteristics of competitive markets

• fast product development

• short life cycles

• demanding customers

• new ways of competing

increased choice

• consumers are more informed than before

• marketing helps identify a businesses strength

• need to differentiate from competitors

decision making to improve marketing preformance

• setting marketing objectives

• understanding customer wants and what they can afford

• understanding market conditions

• understanding capabilities and strengths of a business

marketing objective def

a target set for the marketing objectives of the business

marketing objectives

• higher sales volume

• higher sales value

• sales growth

• higher market share

• increased brand loyalty - repeat customers

• enter a new market

market growth (%) formula

(change in the size of the market / original size of market) X 100

market growth (%) formula

(sales of one product/business / total sales in market) X 100

value of setting marketing objectives

• provides direction and focus

  • gives the marketing team a clear direction and helps avoid confusion about priorities

• helps measure success

  • quantifiable goals (like sales targets, market share increases, or customer retention rates) provide measurable outcomes, making it easier to evaluate the effectiveness of marketing strategies

• improves resource allocation

  • ensures that marketing budgets and resources are used efficiently, by knowing the priority goals, the company can allocate the right amount of resources to each activity

• supports decision-making

  • guide decision-making by helping businesses choose between different strategies

• enhances motivation and accountability

  • team members know what they are working toward, this boosts motivation

• adapts to changes in the market

  • if objectives are reviewed regularly, businesses can adjust their marketing strategies based on current market trends or consumer behaviors

• competitive advantage

  • help the business focus on key strengths, whether it's differentiating products, expanding to new markets, or enhancing customer experience

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