Transcript AS Business * Unit 3 - Appliedbusinessnodehill

Section A – 4, 5
Marketing Objectives
Lesson Objectives
Be able to define Aims, Objectives and
Mission Statements
 Understand what SMART targets are
 Set you Marketing Objectives for your
product
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Marketing Objectives
Essential at board level
 Starting point for marketing plans and
marketing strategy
 Analysing growth trends and competition in
your market
 Makes decisions about how firms want to grow
in the future
Asda Feb 2007
‘Our primary objective this year is to grow our
core business...through like for like sales’
To do this Asda had to cut it’s prices lower than
the market leader TESCO
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Achievable or Challenging?
Objectives work best when they are clear,
achievable, challenging and above all
when staff believe in them
 MO should not be set until decision makers
have clear view of customer behaviour and
attitudes. This involves customer research
 Cadbury have had 30% market share for
years. It is said a 5% increase as a target
for 2 years time is too much to ask. This is
because Nestle and Galaxy would not just
step aside and relax
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Types of Marketing Objective
There are four main types:
1) Increasing product differentiation
2) Growth
3) Continuity
4) Innovation
Increasing Product Differentiation
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Product differentiation is the extent to which
consumers see your product different from the rest
Customers buy your product because they want it
not because its the cheapest....This creates the
highest profit margins
Objectives must separate your product from the
rivals:
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Distinctive design and display
Unusual distribution channels
Advertising based on image building, not sales boosting
Integrated marketing programme focused solely upon the
relevant age group or type of person
Growth
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Target increased sales or market share to push staff harder
for success
There is risk to this - What are the risks for a school who
target increasing pupil numbers rapidly?
‘Cannibalisation’ – When company’s new product takes
sales from the company’s existing products
 Cadbury are the best example of this because of their leading
position in the market
 A few years ago the ‘double choc’ version of dairy milk came out
and mostly took sales from dairy milk
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Other examples of cannibalisation – McDonalds,
Starbucks, M&S
Facebook is a great example of a business with a rapid
growth objective. If they didn’t rush to increase users other
social networking sites like bebo would have.
Continuity for the Long Term
Success with a long term view – Levi’s.
Bacardi, Cadbury
 Unilever even tells managers that their
key role is to hand over a stronger brand
to their successor
 Bacardi could do promotions, launch
bubble gum, ice lollies – But where
would their reputation be in a few years
time?
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Innovation
Bringing in new product ideas is key to long
term competitive success
 Fashion-related and technology-related it is
essential
 2 elements:
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 Get it right
 Get it first
Coca-Cola was First
Cadbury was first
Cornetto was second to a Nestle product but
was Right
Objectives must be SMART
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Research what SMART objectives and
make notes
4
What are objectives?
Why do you have marketing objectives?
What types of marketing objectives are
there?
Explain marketing objectives should be
SMART
5
What are your marketing objectives?
Ensure they are SMART if you say good
MOs are SMART
- After each objective justify why you chose
that for your particular business
- What type of objective is it? Make sure you
think about it in terms of your chosen
business
- What is your chosen company’s mission
statement (look website)? Link mission
statement with your objective
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Target Marketing
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The specific part of the population to whom
a product offering is aimed and all
marketing communication is tailored
Basically it’s the segment you choose for
your product. We understand segmentation
is the breakdown of the population
depending on their buying characteristics.
Target marketing is delivering all the
marketing to that chosen segment
 Lessons Drive – The benefits of target
marketing
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