Marketing Objectives & Planning (AQA A Level Business): Flashcards
Exam code: 7132
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Define marketing objectives.
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Define marketing objectives.
Marketing objectives are the specific, measurable goals that a business's marketing team aims to achieve.
Why are marketing objectives significant?
They give the marketing team clear direction and priorities and allow the business to measure whether marketing activity is effective.
Define lead generation.
Lead generation is attracting potential customers (leads) who have shown interest in a product or service, for example by signing up for a newsletter.
Retaining a customer is generally far _____ than acquiring a new one, making customer retention a cost-effective objective.
Retaining a customer is generally far cheaper than acquiring a new one, making customer retention a cost-effective objective.
Define conversion.
Conversion is turning potential customers into actual paying customers, often measured as a conversion rate.
True or False?
Brand awareness is usually the main marketing objective for a mature business.
False.
Brand awareness is a priority for new businesses and product launches. A mature business may focus on customer retention and engagement to defend its position.
What does high customer engagement suggest?
High engagement suggests customers feel genuinely connected to the brand and are more likely to remain loyal and recommend it.
Why might a business in a saturated market set retention and conversion objectives?
In a saturated or highly competitive market, retention and conversion may be more realistic and cost-effective than growth targets.
How can the marketing budget influence marketing objectives?
The resources available limit what is achievable. A large budget allows brand awareness campaigns, while a smaller budget may suit engagement and conversion through social media.
True or False?
Digital technology has made marketing objectives easier to measure.
True.
Digital tools make it easier to track conversion, engagement and lead generation in real time, increasing the emphasis on data-driven objectives.
Aggressive lead generation, such as buying customer data without consent, may break laws such as __.
Aggressive lead generation, such as buying customer data without consent, may break laws such as GDPR.
Define marketing budget.
A marketing budget is the amount of money a business allocates to its marketing activities over a set period, usually a financial year.
How does a marketing budget enable planning and control?
It allows the business to plan its marketing calendar, allocate funds across activities and avoid overspending, while managers must justify their spending.
How does a marketing budget help a business prioritise its objectives?
If the budget cannot fund every objective, it forces the business to decide which are most important.
True or False?
A business prioritising rapid growth is likely to allocate more to marketing.
True.
A business aiming for rapid growth will usually allocate more to marketing than one focused on maintaining its current position.
With a clear budget in place, a business can measure the return on ________ of its marketing activities.
With a clear budget in place, a business can measure the return on investment of its marketing activities.
How does the life cycle stage of a product influence the marketing budget?
New products need significant investment to build awareness, while established businesses may spend less on attracting new customers and more on lower-cost retention.
True or False?
Cutting the marketing budget when cash flow is tight always saves the business money.
False.
Cutting the budget can be a false economy if it leads to falling sales.
Why might businesses in highly competitive markets spend more on marketing?
They may need to spend more simply to maintain visibility, as cutting the budget risks losing market share to rivals.
__ firms typically need larger marketing budgets than B2B firms, as reaching large numbers of individual consumers usually costs more.
B2C firms typically need larger marketing budgets than B2B firms, as reaching large numbers of individual consumers usually costs more.
How do target market characteristics affect the size of the marketing budget?
Reaching a younger, digitally active audience through social media is relatively low-cost, while reaching an older audience through television or print is significantly more expensive.
How does the effectiveness of previous marketing influence the budget?
If past campaigns delivered a strong ROI, the budget is likely to be maintained or increased, while poor results may lead to a reduction or reallocation.
How can a poorly timed promotion affect operations?
A poorly timed promotion can overwhelm production capacity or lead to stock shortages.
What must operations do if marketing positions a product as premium?
Operations must consistently meet the quality levels that the brand promises customers.
True or False?
Operations decisions on capacity and production costs limit what marketing can promise customers.
True.
Marketing can only promise what operations can deliver, so capacity and production costs limit claims such as fast delivery or low prices.
If production takes a long time, marketing must manage customer expectations about __ times.
If production takes a long time, marketing must manage customer expectations about lead times.
How do marketing's sales forecasts affect finance?
Sales forecasts inform financial planning, including cash flow forecasts and profit targets.
Why does pricing link marketing and finance?
Price is part of the marketing mix, but it directly determines revenue and profit margins.
True or False?
Finance has no influence on how much marketing can spend.
False.
Finance sets limits on marketing spending, and a business with tight cash flow may cut the marketing budget.
Why might finance require marketing to show a positive return on investment?
Finance expects marketing to justify its spending with measurable returns, and activities that cannot show a positive ROI may lose funding.
How can a successful marketing campaign affect staffing levels?
A campaign that drives a significant increase in demand may require additional staff, which HR must recruit quickly.
HR must train customer-facing staff to deliver the ___ experience that marketing has created.
HR must train customer-facing staff to deliver the brand experience that marketing has created.
Define employer branding.
Employer branding is how a business presents itself to potential employees, using marketing techniques to attract talent.
How can labour costs affect marketing?
HR decisions about pay, benefits and staffing levels affect costs, which influences how marketing can price its products.
When is a business competitive?
A business is competitive when it can attract and retain customers more effectively than its rivals.
What is the difference between price and non-price competitiveness?
Price competitiveness is offering lower prices than rivals, while non-price competitiveness is offering something rivals cannot easily match, such as a stronger brand or better service.
Define unique selling point (USP).
A unique selling point (USP) is a feature or benefit that only this business offers, helping it stand out in a crowded market.
A recognisable brand builds trust and reduces customers' sensitivity to ___.
A recognisable brand builds trust and reduces customers' sensitivity to price.
True or False?
Attracting a new customer can cost significantly more than retaining an existing one.
True.
Winning new customers can be far more expensive than keeping existing ones, which makes loyalty-building marketing particularly valuable.
How can digital marketing improve competitiveness?
Targeted social media advertising, SEO and email marketing can reach customers more efficiently and at lower cost than traditional methods.
How can market research support innovation and competitiveness?
Identifying unmet customer needs allows a business to develop new products before competitors, giving a first-mover advantage.
True or False?
Targeting the wrong market has little effect on competitiveness.
False.
Targeting the wrong market wastes resources and fails to build a loyal customer base.
Why does an inconsistent marketing mix damage competitiveness?
An inconsistent mix confuses customers and undermines the brand, for example a premium product sold through discount retailers.
How can underinvesting in marketing harm competitiveness?
Underinvesting allows rivals to build stronger brand recognition and customer relationships.
How can distribution choices give a business a competitive advantage?
Wider, faster or more exclusive distribution affects how conveniently customers can access the product.
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