MARKETING OBJECTIVES Ansoff

Lesson Objectives 1)To understand how Marketing Objectives link with Corporate objectives 2)Understand why we have SMART objectives in Business and how to create SMART objectives 3)To understand what Marketing objectives are and what, why they are created/needed 4)Understand the Ansoff Matrix and how that influences your marketing objectives

Coco cola Task (5 mins) In Pairs 1)Discuss how many departments you feel it has? 2)Then state how you think Objectives are set? What types objectives are there? 3)How you think a product is marketed and introduced by cocoa cola?

The Decision Making Model In order for a company to make decisions on the launching and marketing of a product they should go through each of the following steps in the model. 1)Set out the Corporate Objectives. This gives the company and employees a sense of direction as well as telling the public what the business aims to do. 2)Set marketing objectives. These must be in line with the corporate objectives to avoid any confusion for customers and employees. 3)Gather data on the market, the potential of the product, whether it would be bought by consumers. (Market Research). Needs to be done to ensure that millions are not wasted in launching a bad product. 4)Test the options available to the business. A regional launch would be better than a national launch in the first instance. 5)Decide on the strategy and implement it. Launch the product, get feedback, make the alterations and release into the market. 6)Control and review. Check the progress is as expected. Investigate how performance could be improved. Then return to stage 3 in order to make continual improvements to the product.

CORPORATE OBJECTIVES MARKETING OBJECTIVES Developing new products Improving market share Diversification Improving profitability Increasing brand awareness Re-launch of product Understanding customers’ needs The organisations’ overall goals MARKETING OBJECTIVES

Business Aims and objectives Look at what these mean and why they are important in business

Aims All businesses have aims that they want to achieve. These are the long-term visions or goals of a business. What do you think could be some of the aims of a company? Think of different types of businesses.. Eg banks, BBC, charities..

Aims - goals Profit growth Offer a good service survival Break even expand balancing costs Developing staff skills

bjectives These are more specific than aims. These are targets which are set in order to achieve the aims.

example We want to achieve sales of $10 million in European sales in 2004

SMART Objectives Specific - clear definition of what you’re going to achieve. Often includes a number eg a hotel may have an objective to fill 60% of its beds in October. Measurable so your achievement can be checked. Eg $10 million by 2004 Achievable – without making too many sacrifices. Realistic – should be challenging, but realistic. Time related put a date of when you want to achieve them. Eg 2004, the end of the year

Change to SMART Objectives Aim = I want to go on holiday !!! Objective – ‘I will save up’

Change to SMART Objectives Aim – I want to get fit Objective – I will go running

Change to SMART Objectives Aim– I want to pass my BTEC course Objective – I will do more work

Change to SMART Objectives Aim - I want to be more healthy Objective – I will eat a salad.

Change to SMART Objectives Aim – I want to get a job Objective – I will do a CV

CORPORATE OBJECTIVES MARKETING OBJECTIVES Developing new products Improving market share Diversification Improving profitability Increasing brand awareness Re-launch of product Understanding customers’ needs The organisations’ overall goals MARKETING OBJECTIVES

All businesses have overall objectives called corporate objectives. These are the big main objectives that give direction to the company. Corporate objectives

The marketing departments objectives are all about meeting those corporate objectives by using marketing. These are set as marketing objectives. Marketing objectives

Marketing objectives: establishing the business Understanding customer needs A successful business finds out what the customers want and attempts to supply goods and services that meet those needs. An example of a company understanding its customers is The Feel Good Drinks Company. Market research into consumer needs was carried as the business was planned. This has lead to rising sales and the company being shortlisted for the Orange award for the best marketing campaign for a small business.

Marketing objectives: establishing the business Developing new products New businesses need to develop new products in order to gain a foothold in the market. Established businesses also develop new products to meet the changing needs of the market place or to reflect advances in technology. MP3 USB Walkman cassette player Walkman CD player Walkman MiniDisc player

Marketing objectives: establishing the business Increasing brand awareness A new firm will need to raise customers’ awareness of the business and its products. This can be achieved by advertising, free samples, or by television or newspaper coverage. Established companies may seek to raise the profile of their business and their existing products and brands. Some use the strength of their existing brand names to develop and market new products.

Marketing objectives: expanding the business Improving profitability Profits are the surplus of revenue after costs are deducted. Many business have a corporate aim to maximise profits. Profitability can be improved by investing more in marketing in order to increase sales and therefore profitability. Another approach could be to alter the customers perceptions of the product therefore increasing prices without reducing sales. £

Marketing objectives: expanding the business Improving market share Market share is the percentage or proportion of the total sales in a market achieved by one business. If the overall market is not growing, a business can only increase its market share at the expense of its competitors.

Marketing objectives: expanding the business Diversification A strategy involving a business going into a new market which is totally different from those targeted by the existing activities of the firm. It is particularly appropriate for a business with a strong brand image. Diversification allows a business to spread risk. Mars has recently diversified its product range by making drinks as well as its more established range of chocolate.

Marketing objectives: expanding the business Product relaunches Product relaunches are used to boost sales of flagging brands or products. It is a common strategy used by the confectionary, washing powder and household cleaning industries. Companies may also wish to reposition a product in the market, the aim might be to make a product appear more luxurious or prestigious to consumers.

Group Task ( 10 minutes) In groups of 4 – 6 Choose one following product to discuss. *A new trainer shoe *A new Ipod *A new Sports bag *A new Mobile phone

You will need to: 1)Come up with target audience for the product 2)Come up with one or two Business/corporate objectives for your new company (make them SMART objectives) 3)Come up with some marketing objectives (make them SMART objectives) 4)Come up with ideas how you will conduct marketing research 5)Come up with a strategy to launch the product – Regional launch? National Launch?

Ansoff Matrix Ansoff Matrix weblink

Now go to the following area: U:\Business Studies\Students\BTEC Level 3 Sept 2010 onwards\Unit 3 Introduction to Marketing\Assignment 1\Lesson 2 And open up: Ansoff Marketing Objectives Worksheet.doc Ansoff Marketing objective Individual activity 20 minutes

Ansoff Coco Cola individual activity (20 minutes) Go to the following area: U:\Business Studies\Students\BTEC Level 3 Sept 2010 onwards\Unit 3 Introduction to Marketing\Assignment 1\Lesson 2 And load up the following file Ansoff_&_Coca_Cola[1].doc