Goals are the end action/activity that you want from your users. They are a measure of success of your site or marketing campaign. Example: Registration, Whitepaper Download, Time on Site more than 10 mins. Currently Google Analytics allows you to create Goals based on Page URL, Time on Site, Page Views/Visit and Event. (I will cover creating goals in another post)
Goal sets are a way for you to group related goals. For example if you want “Whitepaper download” as one of your goals and there are 3 whitepapers that you currently have with three different pages. You can then use all three of these different pages as 3 goals within the same Goal Set. There is no validation to stop you from using totally unrelated goals in one goal set e.g. member registration goal and whitepaper download goal but you should not do that unless you don’t have any more room to add goals.
Each goal set can have up to 5 goals and there are 4 Goal Sets available per profile.
You will see you Goal Sets as Goal Set 1, Goal Set2 and so in your reports. (see below)