3.3.1 Setting marketing objectives

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    3.3.1 Setting marketing objectives

    The value of setting marketing objectives

    Marketing Objectives = the process of identifying, anticipating (predicting), and satisfying customer needs profitably

    • Provided the marketing objectives are relevant and achievable, there are some important business benefits from setting them and monitoring progress against them. Effective marketing objectives:
      • Ensure functional activities consistent with corporate objectives
      • Provide a focus for marketing decision-making and effort
      • Provide incentives for marketing team and a measure of success/failure
      • Establish priorities for marketing resources and effort

     

    Types of marketing objectives:

    • Sales volume
    • Sales value (revenue)
    • Market growth (%)
    • Market share (%)
    • Brand loyalty/awareness

     

    External and internal influences on marketing objectives and decisions

    External influences on marketing objectives and decisions:

    • Economic environment – the key factor in determining demand (e.g. many marketing objectives have been thwarted or changed as a result of the recession). Factors such as exchange rates would also impact objectives concerned with international marketing.
    • Competitor actions – marketing objectives have to take account of likely/possible competitor response (e.g. an objective of increasing market share by definition means that competitor response will not be effective)
    • Market dynamics – the key market dynamics are market size, growth and segmentation. Changes in any of these undoubtedly influence marketing objectives. A market whose growth slows is less likely to support an objective of significant revenue growth or new product development
    • Technological change – consumer and other markets are now affected by rapid changes in technology, shortening product life cycles and opportunities that have been created for innovation
    • Social and political change – changes to legislation may create or prevent marketing opportunities. Change in the structure and attitudes of society also have major implications for many markets.

     

    Internal influences on marketing objectives and decisions:

    • Corporate objectives – as with all the functional areas, corporate objectives are the most important internal influence. A marketing objective should not conflict with a corporate objective
    • Finance – the financial position of the business (e.g. profitability, cash flow, liquidity) directly affects the scope and scale or marketing activities.
    • Human resources – for a services business in particular, the quality and capacity of the workforce is a key factor in affecting marketing objectives – a motivated and well-trained workforce can deliver market-leading customer service and productivity to create a competitive marketing advantage
    • Operational issues – operations has a key role to play in enabling the business to compete on cost (efficiency/productivity) and quality. Effective capacity management also plays a part in determining whether a business can achieve its revenue objective
    • Business culture – a marketing-orientated business is constantly looking for ways to meet customer needs, whereas a production-orientated culture may result in management setting unrealistic or irrelevant marketing objectives

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