Marketing objectives look at where the business wants to be in the future. They are the firm’s defined and measurable aims for a given period of time. Marketing objectives must support the overall corporate objectives.
To achieve its marketing objectives, the business develops marketing strategies outlining how it will deliver day-to-day on the objectives. These are the firm’s operational plans established for achieving marketing objectives.
Definition of marketing objectives
Marketing objectives are the specific marketing goals of a business organization set to help the business achieve its aim – get where the business is going.
Marketing objectives are set by the marketing department. These overall marketing objectives can be further broken down into smaller, more specific targets for each section within the marketing department such as market research, product development, promotion, etc.
These targets which the marketing department is aiming to achieve should be a key part of the marketing plan aligned with the long-term aim and the overall corporate objectives of the whole company.
Different types of marketing objectives
The marketing objectives of for-profit organizations are primarily sales and profit related. A business with short-term objectives of maximizing profitability of its products will focus on maximizing sales at the highest prices possible.
The marketing objectives of non-profit organizations are not primarily sales and profit related, but support good causes. A business with long-term objectives, which may include achievement of goals of social responsibility will adopt ’social marketing’ approach.
Examples of marketing objectives
Both organizational objectives as well as marketing objectives in any business organization should be SMART – Specific, Measurable, Agreed, Realistic and Time-Constrained. They will often be expressed in financial terms, specifically as sales volumes and values, sales grown pace, the percentage of market share, etc.
Let’s take a look at the most common examples of marketing objectives. These are long-term goals of the business organization:
- GROWTH:
- Sales revenue. The business will aim to achieve higher sales. The marketing department may consider launching new products to current and new markets or selling existing products to current customers or in overseas markets. In order to boost sales, the firm should increase the number of new customers attracted to the firm’s products. Also, improving and developing new channels is crucial for growing sales revenue. The total number of new retailers signed up to sell the products should be increased. For example, ‘To increase sales of electric cars in Canada by 1000,000 in the first half of 2023.’
- Market share. The firm aims to expand the market and as a result increase its share of the market. The specific percentage will determine the proportion of each market segment that the company hopes to capture. For example, ‘To take advantage of the growing demand for fuel-electric cars and to obtain 6% of the small-electric-car market in the US by 2023 from the current 3%.’
- MARKET DOMINANCE:
- Market leadership. A key marketing objective here is to become the market leader, the largest single player in the market. As the market leader, the business can determine the pace and direction of the market acting as the benchmark which other businesses view their products. For example, ’To capitalize on the trend of healthy lifestyle and to capture majority of the market share the Chinese market for healthy snacks and drinks by 2024.’
- Market standing. To achieve high market standing, the firm should sell what is considered to be the best product in the market. By being the best in its industry, the firm will be able to build its reputation in this way – pushing for quality and being known for offering high-quality goods and services.
- Continuity. This ensures that brands survive in the long-term. Companies need to avoid action that damage the image of the brand. Firms that aim to continue their business indefinitely are often being protected by good patents on their products and through other legal means on their ideas such as copyrights, trademarks, etc.
- BRANDING:
- Brand recognition. The ability of customers and potential customers to recognize a brand and compare it to other brands.
- Brand awareness. The knowledge of the name of a company and the products that the company sells.
- Brand perception. The belief or opinion about the brand that is held by many people based on how the see the company and its products.
- Brand loyalty. The habit of always buying a product with the same name which is made by the same company. The higher the customer satisfaction, the higher the brand loyalty.
- Brand development. The use of marketing to build and convey a certain corporate image such as emphasizing the ethical nature of the business or a degree of environmental responsibility.
- COMPETITIVE ADVANTAGE:
- Profitability. Being able to gain maximum advantages of economies of scale, so operating at the least cost point. It is now widely accepted that, in some markets, a certain critical mass is needed in order to be competitive.
- Differentiation. It is the process of being different or producing and selling products different from other firms. Companies need to ensure that products remain distinctive. Providing features of products that competitor products do not possess.
- Product positioning. A business will focus on a particular section of the market (specific market segment) and note its characteristics.
- Innovation. This is all about developing new ideas to introduce new products and processes to the range. Innovation is especially important in fashion industry and technology industry. Those businesses that aim for innovation as a marketing objective need to have excellent market information to provide a basis for future marketing actions and control of markets. Innovation allows the firm to be proactive to gain ‘first mover advantage’ by being the first in the market to sell a good or service that customers want.
Why are marketing objectives important?
The most important reason why marketing objectives exist is to help the company create customer satisfaction in a profitable way either through growth and development of new products, better branding or differentiation and innovation.
Other reasons why marketing objectives are important include planning, development and implementation of an appropriate Marketing Mix, providing a sense of purpose and direction to the entire marketing team and allowing to monitor progress in achieving the marketing aim.
When marketing objectives are broken down into divisional, regional and product sales targets, it will allow for effective implementation of Management by Objectives (MBO).
Thanks to having SMART marketing objectives, the final review of the company’s marketing strategy can be conducted easily.
Marketing objectives -> Marketing strategies
Marketing objectives form the basis of preparing marketing strategies. In fact, they are going to be achieved by pursuing appropriate marketing strategies – the plan of using Marketing Mix.
Examples of marketing strategies include:
- Market Penetration. Selling more of existing products to existing markets. Making current customers to buy more of the products which they have already been buying.
- Market Development. Selling more of existing products to new markets such as to customers in other countries or to different types of customers.
- Product Development. Selling new products to existing markets. This includes developing new products, or updating existing products. Making current customers to buy new products which they have not been buying yet.
- Diversification. Selling new products to new markets such as to customers in other countries or to different types of customers.
Without a clear vision of what the business wants to achieve for its products in the future, hence without appropriate marketing objectives, it will not make much sense to discuss how to market the firm’s products.
How to make marketing objectives effective?
Marketing objectives will be determined by senior management of the firm – at the highest level in the corporate hierarchy.
To be effective, marketing objectives must be realistic within the market, therefore based on prior market research. They will determine for years to come which products should be sold in which markets.
All marketing objectives should reflect the mission and the aim of the whole business organization while every employee should put effort in attempt to achievement of these goals. They need to be clearly communicated across all business departments.
Constraints of marketing objectives
Let’s consider what constraints marketing managers might face when developing marketing strategies to achieve the marketing objectives.
Internal constraints of marketing objectives include:
- Finance. Marketing plans are normally expensive as the require not only planning and writing, but also conducting marketing audit and market research which are very costly.
- Human resources. Personnel. Higher labor turnover of personnel may reduce the skills base of a business which will affect levels of customer service and quality of products. Recruitment and training to replace the workers which had left the firm are expensive and time consuming.
- Costs. Cost of production. Unexpected increases in energy and raw materials will affect the cost of production, hence the price of final products sold to customers in particular.
- Business size. As sales revenue is usually small in small companies due to a small number of customers, if any fall in demand decreases funds available will negatively affect the marketing budget.
External constraints of marketing objectives include:
- Competition. Amid competition, competitors’ behavior might change, therefore they may amend their Marketing Mix by developing new products fast.
- Economic factors. Changing economic conditions may be either positive or negative for the firm depending on what the business produces. For example, low priced goods may do well during recession, whereas demand for luxury items is likely to fall during economic downfall.
- Tastes and fashions. Fashion items are transitory and tastes can change dramatically in the short-term. This may be the result of some good or bad news story or simply because the society believes it is time for a change.
- Political & Legal. When new governments come into power they usually have their own agenda. This is likely to be supported through spending plans and supporting legislation. Any increases or cuts in public spending can have significant effects on suppliers in the market, especially in the countries where the public sector represents a high proportion of national income.
Conclusively, as marketing objectives form a key part of the marketing plan, these goals should be based on an analysis of the marketing audit that has taken place. After identifying marketing objectives, the business can start developing marketing strategies – ways to achieve these objectives.
