Internal and External Influence on Marketing Objectives

What is a marketing objective?

A specific goal or target relating to the marketing activities and performance of a business

What are the main types of marketing objectives?

• Sales Volume

• Sales Value (Revenues)

• Sales Growth (%)

• Market Share (%)

• Brand loyalty/Awareness

What are the internal influences on marketing objectives?

• Corporate objectives: The most important internal influence. A marketing objective should not conflict with a corporate objective

• Finance: The financial position of the business (Profitability, Cash flow, Liquidity) directly affects the scope and scale of marketing activities

• Human Resources: For a services business in particular, the quality and capacity of the workforce is a key factor in affecting marketing objectives. A motivated and well-trained workforce can deliver market-leading customer service and productivity to create a competitive marketing advantage

• Operational influences: Operations have a key role to play in enabling the business to compete on cost (efficiency/ productivity) and quality. Effective capacity management also plays a part in determining whether a business can achieve its revenue objectives

• Organisational culture: E.g. A marketing-orientated culture is constantly looking for ways to meet customer needs. A production-orientated culture may result in the management setting unrealistic or irrelevant marketing objectives

What are the external influences on marketing objectives?

• Economic environment: Key factor in determining demand. E.g. rate of economic growth will impact demand. Factors such as exchange rates would also impact objectives concerned with international marketing

• Competitor actions: Marketing objectives have to take account of likely/possible competitor responses. E.g. An objective of increasing market share by definition means that competitor response will not be effective

• Market size growth and segmentation: A market whose growth slows is less likely to support an objective of significant revenue growth or new product development

• Technological change: Many markets are affected by rapid technological change, shortening product life cycles and creating great opportunities for innovation

• Social and Political Change: Changes to legislation may create or prevent marketing opportunities. Changes in the structure and attitudes of society also have major implications for many markets