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Marketing Objectives
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• McDonalds Marketing does not stand still page 243
Marketing Objectives
• These objectives are closely aligned to the main
Corporate Objectives.
• What might a company focused on Profit
Maximization set as a Marketing Objective?
• Marketing Objectives – the goals set for the
marketing department to help the business achieve
its overall objectives.
• Marketing Strategy – Long term plan established for
achieving marketing objectives.
Common Marketing Objectives
• What would be a Common Marketing Objective?
- Increase Market Share
- Rebranding of a product to freshen it up
- Increasing total sales
- entering new markets with your product
- Increase the Brand awareness and Recognition
Effective Marketing Objectives
• Align with the overall objectives of an organization.
In order to ensure overall success for an organization.
• Be Determined by Senior Management. The
objectives will identify what markets will be used for
business trading so they need to be discussed at a
very senior level.
• Be SMART (Specific, Measurable, Achievable,
Realistic and Timely)
Why Are Marketing Objectives
Important
• Direction – for the Marketing Team
• They can be tracked to examine success
• They can be broken down into regional and product
specific objectives.
• They form the basis of Marketing strategy for an
organization
Marketing and the rest of the
Business
• The Marketing department must have appropriate
and good links with the other functional parts of the
business, such as HR, Finance and Operations.
• It is often said that Marketing is Central to the
Business as it drives the corporate objectives, so
good communication with all other facets of the
business is crucial to success.
Marketing and Finance
• Finance are interested in sales forecasts so they can
construct there budgets, generally these come from
the Marketing/Sales department.
• They also fund the marketing budget so need to
understand the benefits the spending will bring to
the Business.
Marketing and HR
• They will liaise around what personnel and required
and when.
• Also required to ensure the right staff are employed
to drive the marketing strategy.
• Note – Because of NZ’s Small to medium sized
business environment we don’t usually have HR
departments, this is done by the managers.
Marketing and Operations
• This is a crucial role as they operations department
ensures they get the product out on time to the
customers, so they need accurate sales forecasts so
they can plan there production effectively. Incorrect
forecasts could lead to overstocking and over
staffing.
Market Orientation
• An outward looking approach basing product
decisions on consumer demand, as established by
Market Research.
• Common Terms Market Led, most businesses would
say they are Market led, this requires an in-depth
understanding of your customer and there needs
rather than just providing them with a product.
Advantages of Market Orientation
• There is Less likelihood of your product failing if
effective market research has been undertaken.
Taking a product to market without the appropriate
research can mean huge losses.
• If you are meeting consumer needs then your
product will survive get a good reputation in the
market and hopefully continue to make profit.
• Constant feedback from your market will ensure that
your product will meet market demand, this allows
you to adapt quickly to any market changes and
often before your competitors.
Product Orientation
• An inward looking approach that focuses on making products
that can be made or have been made for a long time and then
trying to sell them.
• Not as common as the Market Orientated approach as there is
greater choice now so simply making a product that has
always been made is difficult, as the market is well formed
and new competitors will struggle to meet the price points
etc.
• Where might a product orientation approach be successful?
- Technological products?
- Products that require a high degree of safety?
Questions
1. Using Examples Differentiate between market
orientation and product orientation? 3 marks
2. Explain three problems that might result from failing
to link marketing decisions with other departments
in the business? 5 marks
No Talking, Separate piece of refill, hand in for
marking you have 15-20 mins
Asset Led Marketing
• An Approach to Marketing that bases Strategy on the firms
strengths and assets instead of purely on what the customer
wants.
• This means rather then meet all demands of the consumers
they will focus on what utilizes there resources best. Rather
then getting away from the core strengths that made them
successful.
• What Companies use this Approach?
– Coke
– BMW
– Vodafone
– Living Earth
Societal Marketing
• Similar too CSR but with an emphasis on making
consumers fully aware that your product benefits
society. This is normally done on the packaging or
through advertising. Companies such as Cadbury,
Body Shop and other big corporate’s use this
approach regularly.
Benefits of Societal Marketing
• Can give a business a significant competitive
advantage, many consumers prefer to purchase from
socially responsible companies.
• Can lead to an ability to charge more for your
products as it benefits society so provides you with a
unique selling point.
• What are the negative implications?