Transcript 3. Marketing Objectives Instructionsx

…align with business objectives
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Students must…
◦ Understand that marketing objectives need to align with
and support the objectives of the business, e.g. growth of
revenues from sales
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Students should…
◦ Explain how marketing objectives support business
objectives, e.g. explain how a business wanting to grow
its revenues from sales might choose one of four
marketing strategies (penetration, product development,
market development, or diversification) to accomplish this
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Students could…
◦ Evaluate the appropriateness of the marketing objectives
given the business objectives by applying the concept of
marketing strategies or Product Life Cycle.
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Let’s assume your business objective is to
grow its revenue from product sales
(There are many business objectives possible
but for the sake of understanding marketing
objectives, let’s assume your business wants
to grow its revenues.)
The principle: marketing objectives must
align with business objectives.

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Increase Sales
Revenues
Increased Sales
Volumes

Market Penetration –
◦ increase sales of current
products in current markets

Product Development –
◦ produce new products for
current markets

Market development –
◦ find and target new markets
for current products

Diversification –
◦ find new markets and target
these with new products
Business Objective
Marketing Strategy to Follow
e.g. the business objective (growth of sales) can
be achieved by following one of four marketing
strategies…

The marketing objective may be to increase
market share of existing markets by reducing
prices
◦ The marketing objective is to increase the business’
proportion (share) of total sales in a market, e.g.
Pepsi in UAE has 52% of UAE cola market and wants
57% by offering promotions or discounts
◦ Objective may be accomplished by increasing
advertising in key markets, such as professional
soccer/rugby/cricket games.

The marketing objective might be to increase
the amount of sales revenue in a market by
offering new and improved products, e.g.
Pepsi in UAE offers pomegranate flavoured
Pepsi.
◦ Improving existing products by adding “New!
Improved!” features or brands to current product
lines
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The marketing objective might be to increase
sales in NEW markets for current products by
offering same products to new consumers,
e.g. finding new export markets
◦ Little improvement is envisioned in the product and
growth in revenues comes from finding and
targeting new consumers, e.g. a Kenyan coffee
cooperative might seek new markets in the UAE
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Marketing objectives might seek to increase
sales in NEW markets with NEW products, e.g.
Nokia developing exciting new products for
new markets.
◦ Diversification strategy can require a substantial
investment in research and development, and
investment in finding new target markets, or
◦ Diversification may be a simple modification to an
existing line such as pink vs blue disposable
shavers for women and men.
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Microsoft offers new Windows 12 OS
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Ethiopian Coffee Cooperative sells Fair Trade Coffee
to British specialty coffee business
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An iPhone developer creates a new app for a new
client (what’s the business?)

Sugar cane producers increase sales by selling to biofuel producers.
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Proctor and Gamble Company enters a new consumer
market with a new line of animal deodorants.
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But first, read page 219 top
Assuming your business goal is to increase
revenues from sales, which marketing
strategy might provide the best result for the
subject of your marketing plan?
Note: increasing revenues is just one business goal, but its an
important one!