3.3.1 – Decision making to improve marketing performance

What is relationship marketing? (definition)
this is an approach to marketing in which a company seeks to build long term relationships with its customers by providing consistent satisfaction. It focuses on customers retention rather than one off sales
What is a business ethics?
This refers to whether a business decision is perceived as morally right or wrong
What is a marketing objective?
A marketing objective is a target set for the marketing function for example to increase sales by 10% within 3 years
What is sales value? (definition)
this measures the level of sales in a given period in pounds sterling (in UK)
What is sales volume? (definition)
this measures the level of sales in a given period in terms of units sold.
What is a market share? (definition)
this measures the sales of one brand or business as a percentage of total markets sales in a given period
What is sales growth? (definition)
this is the percentage change in sales volume or value over a given period
What is market growth? (definition)
this is the percentage change in the total sales in the market over a given period
What is the role of marketing?
The role of marketing is to create demand for the products and services offered by a company
What is the process of decision making involve?
1. setting up the objectives 2. understanding what consumers want and can afford 3. understanding market conditions 4. understanding strengths + weaknesses of competitors 5. understanding how best to communicate and satisfy customers needs and wants 6. implementing market decisions 7. review
What is brand loyalty? (definition)
This is where a customer will continuously go back to a certain brand
Why is it important to retain customers? (definition)
This is often an important aspect of marketing as managers will want to measure how many customers return to use the business again
What are internal influences? (definition)
on marketing objectives and decisions refer to factors within the business such as employees and operational resources
What are external influences? (definition)
these are on marketing objectives and decisions refer to factors outside of the business such as the state of the economy
What is globalisation? (definition)
refers to the increasing trade between countries and the growing internationalisation of businesses
What are the 6 possible internal influences?
-the overall strategy of the business
-the ambitions of managers
-the existing positions of the business
-the amount the business can produce
-finance
-the employees of the business
What are the 6 possible external influences?
-changes in the world in which marketing operates
-the political and legal environment
-economic change
-social change
-technology changes
-competitive
What are the 5 types of marketing objectives?
sales value, sales volume, sales growth, market share, brand loyalty
How do we calculate sales growth?
Change in sales/original sales x 100
How do we calculate market share?
Company sales/total sales x 100