Setting marketing objectives

13.1 The value of setting marketing objectives

Marketing objectives steer the direction of a business.If firms set marketing objectives the profitability of success increases because decision-making will be more focused.

Marketing objectives must be compatible with the corporate objectives.

Marketing objectives should be SMART.

13.2 Examples of marketing objectives

Sales volume and sales value:

• Setting sales volume targets can be particularly important in industries such as car manufacturing because of high fixed costs associated with operating in this market. If sales volume can be increased, the high fixed costs of operating will be spread across a greater number of units of output, reducing fixed costs per unit. Lower unit costs will help BMW to widen its profit margins. Higher profit margins will give BMW the opportunityto increase its R&D budgets, raising the likelihood of success for BMW's next generation of new models.
• Nike has benefited from a different way of looking at sales. It sets a goal based on sales value rather than volume - money.

Market size:

• If a business has a large market share, it may worry that boosting its share further may bring investigations from the Competition and Markets Authority. Therefore the best way to achieve further growth is by encouraging growth in the market sector as a whole, eg. Wrigley.
• In these circumstances businesses might sponsor research by academics into the health-giving qualities of the product.

Market and sales growth:

• For plcs pressure from outside shareholders dorce them to keep pushing for more growth. This presses the company into finding new opportunities and may lead the marketing department to overreach. (Kit Kat coming out with new…