📚 Seth MB


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Marketing Objectives

Last updated Dec 7, 2022 Edit

Marketing is the process of identifying, anticipating and satisfying customer needs profitably.

Objectives are statements of specific outcomes that are to be achieved.

Marketing objectives must be consistent with corporate objectives.

For example, if the corporate objective is to reach a market share of 10%, the marketing objectives may be to reach sales of £100 per customer.

When you set an objective, it provides a focus and a purpose to the people involved.

# Marketing Maths

Key measures:

# Market Size

The total size of the market, the number of sales in the specific industry (ie, how many smartphones are sold).

Usually measured in either volume or sales (revenue).

Not usually a marketing objective, as you can’t easily influence in the size of a market.

Market segments can also be measured.

YearMarket Size (£)Index Number (2014 = 100)

# Market Growth

YearUnits Sold [A]Change (Units) [B]Growth Rate (%) [B/A (from prev yr] x 100

# Market Share

BusinessSales in 2018 (£)Cumulative Market Sales (£)Market Share (%) in 2018

# Problems with setting market objectives

# Example of marketing objectives

Maintaining or increasing market share (corporate objective) => Achieve revenue growth of 20% per year for the next four years. Increase our market share in the UK by 5% by 2017. Add 1,000 new customer accounts generating at least £100,000 per account within four years. (marketing objective)

# Internal influences on marketing objectives

# External influences on marketing objectives

PESTLE is important here (or whenever looking at external influences/factors).

# Worksheet

  1. Percentage change in market size. Year 1: £22,000 Year 2: £25,300 15% change

  2. £35,700 + 30 % = £46410 25 + 20% = 30

  1. Greater brand loyalty will result in more returning customers and word of mouth publicity, leading to higher sales and customer numbers.
  2. Higher interest rates will impact the amount people are willing to borrow, so for a high value product such as a car, higher interest rates may require more affordable finance options to be made available or lower prices overall.
  3. Lower profitability means that the business needs to take action to increase the amount of profit that it is making to prevent it from becoming unprofitable and to appease shareholders and increase stability of jobs.

3 internal influences:

3 external influences:


# Sampling

Sampling involves the gathering of data from a sample of respondents, the results of which should be representative of the population (eg, target market) as a whole.

# Sampling Techniques

**Highly geared—thee business is financed by loans