Marketing Objectives

DO NOW 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 Using Examples Differentiate between market orientation and product orientation? 3 marks 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?