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MARKETING & MERCHANDISINGOBJECTIVES

Julie Campbell

What’s my

objective?

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OBJECTIVES0Goals or targets that companies set themselves to

achieve and which provide a focus for decision ,making and for devising strategy

0Short term targets with defined measurable achievement

0Objectives must be definable and quantifiable ...there must be an achievable target.

0Objectives should be defined in such a way that actual performance can be compared with the objective.

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MARKETING OBJECTIVES

0Goals/targets that must be achieved by the marketing or merchandising department to achieve overall goals.

0Marketing objectives are the aims set out for the organisation’s marketing programme.

0Marketing objectives are about products, sales, marketing and merchandising

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Why do we need Marketing Objectives?

0To enable a business to control a marketing and merchandising plan.

0To help motivate individuals.

0To provide a common goal.0 To provide an agreed,

consistent focus for all functions of the business

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Marketing Objectives and Strategy

0Objectives provide the starting point for marketing/ merchandising plans and strategies

0Strategy concerns methods devised to achieve the objectives.

0The success of the strategy should be evaluated in terms of the extent to which objectives were achieved

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SMART objectives

0 Specific – not vague0 Measurable – quantities and verifiable0 Agreed – with those concerned0 Realistic – and achievable0 Time related – to be achieved within a

specified time

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How do these objectives fit in with overall objectives?

0Hierarchy of objectives – marketing subordinate

0Corporate objective – overall objectives

0Marketing/merchandising - set out by the Marketing and Merchandising Departments

0Marketing mix objectives – product, place, promotion, and price.

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example...

0Corporate objective – to grow the company0Marketing objective - increase market share0Product objective – to launch a new range0Distribution objective – to appoint new agents

for this range0Promotional objectives – to increase brand

awareness by 25%0Pricing objective – to be cheaper than

competitors

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Marketing objectives refer to :

0Sales0Market share0Market standing0Customer satisfaction0Customer awareness0Customer retention0Distribution penetration0Product launches

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WHY?

0Maintain market share0Increase market share0Enter new markets0Develop new products0Enhance product image0Establish product as market leader

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and also...

0Increase product range0Enter new market segment0Increase sales0Increase sakes revenue0Increase customer awareness0Increase brand loyalty0In all cases these objectives should be

made SMART

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SMART objectives

0 Specific – not vague0 Measurable – quantities and

verifiable0 Agreed – with those concerned0 Realistic – and achievable0 Time related – to be achieved

within a specified time

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Examples of SMART

0Increase market share in the target market by 5% in the coming year

0Increase product sales to the TM by 20% in the coming year

0Increase brand awareness by 40% in the coming year

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Constraints on Setting Objectives

0Realistic and achievable

0Little purpose in setting unrealistic goals

0Organisational freedom is therefore constrained

0Constraints are internal (lack of resources) and external (consumer demand)

0Objectives should be achievable given the constraints that apply

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Constraints...

0 InternalFinancial – limited funds Resources - limited human resources and expertiseMarket position – sales, market share

ExternalCompetitionThe economy - consumer demandTastes and fashions – changes in customer preferences

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A final thought...0 “

If you don’t know where you are going any road will take you there”

(Raymond Viault, former CEO of Jacobs Suchard)