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

Main types of Marketing Objectives:

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

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

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