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

ANSOFFs MATRIX-Product Growth Strategy

Market Produ EXISTING ct EXIS T NEW

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) Hondas 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 soldout.

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.