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decsison making 3.3 Cheat Sheet by

business

Marketing

Market­ing:the process of identi­fying , antici­pating (predi­cting) and satisfying customer needs and profit­abi­lity.
Objectives flow from the mission and vison of the business: Miss­ion­-the overall purpose of a busine­ss-­->­Vi­sio­n-the overall aspiration of the busine­ss-­->­Aims or goals­-g­eneral statement of waht a busness intends to acheiv­e--­>­Obj­ect­ive­s­-more precise and detailed statements of the aims/goals
Marketing objcetives are "­fun­cti­ona­l" object­ives: Miss­ion­-­->­Co­rpo­rat­e/s­tra­teg­ic­--­>­Fun­cti­ona­l­-->­T­eam­-­->­In­div­idu­al, the further down the line the detail increases where as the further up the line the strategic approach increa­ses.MA­rketing objectives need to be cinsitant with and supporte corporate object­ives.
Sales volume­:­mea­sures the number of items sold or produced e.g.number of TVs sold. Sales value­:m­easures the financial worth of the items sold e.g. £30 million of TVs.
Market size:the volumes of sales of a product e.g. the number of items sold or the value of sales of a product e.g. the total revenue from sales.It indicates the potential sales for a firm e.e. the uk car market earns a revenue of over £30 billion a year. Market size is raerly used as a marketing objective as a single company will only ever be part of a market.
Market Growth= (Market size in a year - market size in previous year )/Market size in previous year x 100.The following factors influence market growth: Economic growth­N­ature of the produc­t­,­Changes in taste­,­Social changes and Fash­ion
 

Marketing

Sales growth­=­(Sales in a year -sales in previous year/sales in previous year) x 100.
Market share= ( sales of one product or brand or company / total sales in the market) x 100.
Brand loyalty: A measure of the degree of attatc­hment taht a customer has for a particular brand or product. High brand loyalty for one product will reduce the likely hood of a consumer switching to another brand.
Examples of markketing object­ives: Main­taining or increa­seing market share­,­De­vel­oping new products / innova­tio­n­,­Meeting the needs of custom­ers­e­ntering a new market­/market positi­oni­ng­,­Ga­ining advantages over compet­ito­rs.
The value of setting marketing object­ives: Ensure functional activities consistent with corporate object­ives, Provide a focus for marketing decisi­on-­making and effort, Provide incentives for marketing team and a measure of success / failure, Establish priorities for marketing resources and effort.
There are some potential problems with setting marketing object­ives; Fast changing external enviro­nment e.g. changes in legisl­ation impacting the whole market­;­Pot­ential conflict between marketing object­ives e.g. trying to increase market share by cutting prices may damage objectives for brand percep­tio­n;­easy to be too ambitious with marketing object­ive e.g. growing market share without putting necessary resources in place to achieve it.
 

Influences on marketing

Inte­rnal influences on marketing object­ives: corp­orate object­ives are the most important internal influe­nce.A marketing objective should not conflict with a corporate objective. Fina­nce the financial position of the business directly affects the scope and scale or marketing activi­tie­s.­Human resour­ces for a services business in partic­ular, the quality and capacity of the work force 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 issues operations has a key role to play in enabling the business to compete on cost and qualit­y.e­ffe­ctive capacity management also plays a part in determ­ining whether a business can achieve its revenue object­ive­s.­Bu­siness culture e.e. a marketing orientated business is contently looking for way to meet customer needs.A production orientated culture may result in management setting unreal­istic or irrelevant marketing objectives
Exte­rnal influences on marketing object­ives: Economic enviro­nment the key Factor in determ­ining demand for example marketing objectives changed as a result of the recession factors such as exchange rates would also impact objectives concerned with intern­ational market­ing.­Com­petitor actions marketing objectives have to take into account the Likely/ possible competitor response for example an objective of increasing market share by definition means that compet­itive response will not be effective. Market Dynamics the key market Dynamics are 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 opport­unities for innova­tion. Social and political change changes to legisl­ation may create or prevent marketing opport­uni­ties. Change in the structure and attitudes of society also have major implic­ations for many markets.

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