marketing objectives
TRANSCRIPT
Marketing Objectives
Marketing Objectives
•Goals or Targets that must be achieved by the marketing department in order to achieve overall corporate objectives about the product.•Marketing objectives are aims set out for the organizations marketing program
Importance of Objectives
Objectives are starting point for Marketing plans and Marketing strategy.
The results of Marketing Analysis and SWOT Analysis lead to the definition of Marketing objectives.
Hierarchy of Objectives
Corporate objectives Marketing objectives Product objectives Pricing objectives Distribution objectives Promotional objectives
Making objectives SMART? All objectives should be SMART . Specific - Be precise about what you are
going to achieve. Measurable - Quantify your objectives. Achievable - Are you attempting too
much? Realistic - Do you have the resources to
make the objective happen (men, money, machines, materials, minutes)?
Timed -State when you will achieve the objective (within a month? By February 2018?)
Some examples of SMART objectives 1. Profitability Objectives To achieve a 20% return on capital employed by
August 2019. 2. Market Share Objectives To gain 25% of the market for sports shoes by
September 2018 3. Promotional Objectives To increase awareness of the dangers of AIDS in
France from 12% to 25% by June 2017. To increase trail of X washing powder from 2% to 5%
of our target group by January 2019.
Some examples of SMART objectives 4. Objectives for Survival To survive the current double-dip recession. 5. Objectives for Growth To increase the size of our Brazilian
operation from $200,000 in 2017 to $400,000 in 2018.
6. Objectives for Branding To make Y brand of bottled beer the
preferred brand of 21-28 year old females in North America by February 20
Two types of Objectives
Strategic Thrust Strategic Objectives
Strategic Thrust
Strategic Thrust-Defines future direction of business in terms of which products to sell in which markets
Strategic Thrust-4 Alternatives
MARKET PENETRATION PRODUCT DEVELOPMENT MARKET DEVELOPMENT DIVERSIFICATION
ANSOFF’s MATRIX-Product Growth Strategy
Market
Product
EXISTING NEW
EXIST MARKET PENETRATION•Increase sales to existing market•Penetrate existing market more deeply
MARKET DEVELOPMENT•Existing products sold to new markets
NEW NEW PRODUCT DEVELOPMENT•New products developed for existing markets
DIVERSIFICATION•New Products sold to new markets
MARKET PENETRATION Increase quantity and frequency of
use, Shampoo-wash hair more frequently Fairness cream-Two times daily Kellogg's cornflakes-Both break-fast &
Evening meal, not only for kids, for the whole family
NEW PRODUCT DEVELOPMENT
Improving Product ,Brand extensions New version of Microsoft windows New flavors of Coke and Pepsi, Tang Product replacement of Skoda and
Fiat
MARKET DEVELOPMENT Exporting the product, or marketing it
in a new region, are examples of market development.
Eg. Selling of cars , Electronics, Consumer durables with minor changes in oversees market
Tesco Supermarkets opening convenience express stores
DIVERSIFICATION Related or Unrelated Eg. Maggie Ketch-up, noodles, soup,
pastas(Related diversification -food) Honda’s move from Motor-cycles to
Cars( Un-related) Eg. Apple computers to i pod Intel processor to smart phones and
computers
Strategic Objectives
Product-level objectives relating to the decision to build, hold, harvest or divest products.
Important for companies with diversified portfolio of Products
Eg. Unilever, Nestle.
Strategic Objectives-4 Alternatives
Build-Increase sales & Market share Hold-Prevent the sales from going to
competitors Harvest-To maximize profit margin
when sales and market share are about to fall.
Divest-Products are dropped or sold-out.
Strategic Objectives-Examples Unilever build and hold brands-Dove
soap, Knorr soups, Lipton tea, Magnum ice-cream
Unilever harvest or divest-Brut deodorant, Pears soap, Jif lemon, Radion washing powder.
IBM sold PC division to Lenova to concentrate on Software business
P & G acquired Gillette Nestle-General mills Cereal
Partnership
Conclusion
Strategic thrust and strategic objectives define where the business and its products intend to go in future.