– Setting marketing objectives
– Selecting marketing tactics and strategies
– Marketing objectives are often more effective if they have a target and a time limit. For example, a marketing objective might be to increase market share by 10% in the next three years.
– Gaining and maintaining sales and market share
– Product differentiation
– Product introduction
– Product innovation
– Consumer knowledge
– Consumer satisfaction
– It might be able to increase its revenue by selling more products, charging a higher price or launching new products. All should lead to higher profits.
– Businesses aiming to grow often attempt to create a competitive advantage over their rivals. Marketing can help a business do this.
– Examples of businesses that have grown rapidly as a result of marketing include the low-cost flight companies EasyJet and Ryanair.
– When a new product is launched. New products often require marketing and promotion to break into the market and for sales to take off.
– To develop over the long term. Some products have very long life cycles such as the Mini motor car and Heinz Beans. They have sold continuously over many years as a result of marketing extension strategies designed to maintain sales.
– Charging a lower or higher price
– Changing the packaging
– Changing the design and ingredients of the product
– Advertising and other forms of promotion
– Selling the products in different types of retailer
Examples might be the change in name and advertising of the sweets Opal Fruits to Starburst or the setting up of a website by BA to sell flights through the Internet.
– Some businesses introduce products regularly, such as new versions of computer software and games. Car producers might regularly introduce newer versions of cars to replace older models. For example, the Ford Mondeo replaced the Sierra and the Ford Focus replaced the Escort.
– Raising the awareness of products, for example, through a variety of promotion measures, can therefore be an important objective.
– Adidas attempted to regain market share by its own marketing campaign, with the objective of differentiating the product. It promoted its trainers as having ‘street credibility.’ After the year 2000, Adidas launched a number of product ranges with a ‘retro look in attempt to increase sales and win market share.
– For example, a furniture business with the objective of increasing sales revenue after Christmas might have a 30 day offer where customers can choose a free chair with any three seater sofa they buy.
– Able to be measured, to decide if they have been achieved, which usually involves setting targets, agreed by everyone involved.
– Realistic and able to be achieved within the constraints of the business
– And time specific, stating exactly when they should be achieved.
– Operational and organisational issues
– Human resources
– For example, the aim of a DVD and video rental chain might be to become the most well known name in the UK. Its objective might be to increase sales turnover by 20% over two years to achieve this.
– So its marketing objectives could be to spend an extra £1 million on promotion to teenagers in magazines and product ‘tie-ins’ to make them more aware of the service.
– It may be difficult to launch new products, for example, if a business lacks funds.
– Similarly, a business with limited finances and access to only small pools of additional finance may find that some marketing objectives are beyond its realisable ambitions.
– A business which does not, for example, have a specialised marketing department might have a different marketing strategy from one that does. A business operating in many countries might market differently from one in a local or national market.
– For example, a new business staffed by recent graduates may well opt for marketing methods different to a more established business with a wider range of employees.
– Technological change
– Market factors
– Take the example of a large and dominant business operating in a market where it is seeking to gain market share. In such conditions a less dominant business may seek to defend and maintain its market share.
– This is because such markets are often relatively open with new businesses able to gain large slices of market share quickly. Many web-based networking businesses such as Facebook have been able to realise ambitious marketing objectives in this way.
– By way of contrast businesses operating in relatively slow changing markets with few technological changes are more likely to set modest marketing objectives reflecting their belief that future circumstances may be likely to resemble in many ways those already experienced.
– In a mature market with little or no room for entrants, businesses are likely to set modest marketing objectives given that they are constrained by the intensity of competition and the relatively few opportunities to grow significantly.
– The global market for cars, for example, is saturated with many producers competing. This means that car businesses cannot expect to see the kind of growth experienced by Google when they entered a new market, for Internet searches, with a few competitors.
– Economic factors: Increases in consumer spending, falls in interest rates and low inflation can all improve the chances of a business increasing its sales and profit. An increase in the number of new businesses may reduce the market share of a company that is dominant.
– Social factors: Changes in tastes can affect spending by consumers. Fashionable products can often increase sales rapidly.
– Technological factors: New products may be created as technology develops. The internet has also helped to increase consumer awareness of products.
– Legal factors: This can include legislation from the government. For example laws might restrict the type of advertising used for a product in an attempt to differentiate it from those of rivals
– Environmental factors: These can often influence the type of product that a business produces, such as the development of businesses selling managed wood as an alternative to other wood or plastic products.
– It will also help to identify the strengths, weaknesses, opportunities and threats faced by the business, called SWOT analysis.