Marketing is all about making the potential customers aware of all the products and services that you offer as an organization. It is one of the essential elements in any organization and paying selective attention to this concept should be vital for the all round development of an organization. So, what are the objectives of effective marketing? Let us check them out in detail further in this post.
What are the Objectives of Marketing?
Dr. Philip Kotler, the widely acclaimed management guru, defines marketing as “ the art of exploring, creating and delivering value to the target audience at a profit… it should identify and quantify the target market and the profit potential that this market offers you.”
These lines should provide you with an idea about the specific objectives of marketing as a strategy. The target market and profit margins are significant factors to be considered. From that perspective, the objectives of marketing can be subdivided into the following four subcategories-
- Objectives based on Market Share
- Objectives based on Profitability
- Objectives based on Promotions
- Objectives based on Growth
Objectives of Marketing based on Market Share
Market share, in simple terms, is the percentage of the total market size that the product is aiming to capture. Increasing the market share is what you need to look for as a marketing professional. It should be one of the essential elements in any comprehensive marketing plan you may have developed for your business.
Acquiring new customers continuously is one of the most prominent goals in any organization- that too at a minimum possible Cost Per Acquisition.
A good example of a marketing objective would be to plan an increase in market share consistently every year until you reach the position where you have the highest market share. Even then, you will have to strive to make sure that you maintain that position continuously. If you are in a service area, your objective would be to increase the number of customers that rate your services on a higher scale and give repeat business.
Objectives of Marketing based on Profitability
Profit is one of the primary goals for the growth of your organization. Your marketing objectives always attempt to keep it at the center stage. Profitability is one of the major elements you need to take off if you want to keep your business sustained.
Some of the elements that may need special attention may include a net profit margin, asset turnover, and financial leveraging. Net profit margin will take into account the profits made by the retailer of your products. It is generally expressed as a ratio to the net sales of the product. Asset turnover refers to the profit earned for the amount spent over a stipulated time. This metric takes into account all the costs incurred until the product is delivered to the customer.
For instance, reducing the costs of the premises by shifting to a new location that offers you saving in the rental can be seen as a good example to cut costs and improve the net profit margin.
Objectives of Marketing based on Promotions
Promotion of your goods and services plays a major role in enhancing awareness about the services you offer. A marketing strategy begins with the creation of a brand identity and taglines for an efficient display of your products and services.
Emails, social media, print and TV are some of the mediums for achieving the promotional objectives of marketing. Having a solid strategy in place before you embark on this journey will help a long way. Check out the options that are best suited for achieving the goals. Choose those platforms that add real value to the campaign.
Some of the goals that promotional objectives of marketing can include are increasing the business, encouraging the repeat buyers, improving the brand awareness and introduction of new products based on the feedback from the regular clients and customers, etc. The reward points schemes run by many business organizations can be seen as one of the finest examples of promotional marketing objectives. Launching discount offers or holding press conferences to provide enough exposure to the new product in particular and the brand, in general, is yet another prime example of the promotional activity within marketing.
Objectives of Marketing based on Growth
Today, many businesses face a lack of insight into the future. If your goal is to see your business grow, it is quite important to keep your eyes open to the changes that are happening in the business world- particularly in the field your company is operating in. Thinking out of the box can lead you to the height of success.
A prime example of our times can be attributed to the launch and success of Reliance Communications. When the mobile phones were limited to the elite few in the 2000s, the innovative marketing from Reliance brought it into the reach of the common man with affordable phones and plans. This strategy turned out to be a game changer, and the result is in front of us. Reliance Jio repeated the history with its innovative planning yet again in 2016.
Looking into the future and seeing the likely changes in your chosen sector is a crucial factor and your marketing objective needs to be focussed on this arena. Also, have competence in reading into what the customers are looking forward to and invest in research into the possible improvement in your products and services based on their expectations.
Using SMART Goals to Achieve Marketing Objectives
Marketing Gurus around the world have been stressing on the need to opt for a plan that helps you the best results in the least possible time. The best strategy is to become SMART.
The SMART objectives of marketing involve the following attribute to your marketing plan –
- S- Specific (Stay specific to your goals and the numbers. No ambiguous statements)
- M – Measurable (The achievement planned should be measurable. Eg. Percentage increase)
- A – Achievable (Set goals that are within reach of the capabilities of the organization)
- R – Realistic (Make sure you have the relevant resources to achieve the goals set)
- T – Time-bound (provide time bound achievement goal)
The main purpose of the SMART objectives would be as follows-
- Motivating the team into achieving the best possible results through a coordinated and streamlined approach.
- Offering a consistent focus for the accomplishment of the goals.
- Making the organization has complete control over its marketing initiatives.
Marketing Objectives Examples
Given the SMART objectives we mentioned above, the following examples may help drive the message more clearly.
1) The Marketing Objective is To increase the size of our Malaysian sales from $200,000 in 2015 to $400,000 in 2020.
Meaning – A SMART objective of marketing based on the growth perspective. Here the objective of marketing can be achieved by using sales and marketing means to improve sales and growth of the company.
2) The Marketing Objective is to increase the market share of our X brand of the product by 25 percent by September 2019.
Meaning – This is a perfect example of a SMART objective through the market Share perspective wherein the focus of the company is increasing market share. For this, focus is required on increasing channel partners and improving distribution in a region.
3) The Marketing Objective may be to survives in a penetrative market such as low-cost smartphones.
Meaning – In such a case, Survival is the objective of marketing and the brand can innovate or differentiate to keep itself alive and to demand premium even in a penetrating market. Or it can look at its cost structure, study consumer behavior and come up with a plan to survive if the market is too penetrative.
Before we conclude …
It is important to note that there is a difference between marketing objectives and marketing goals. Marketing objectives fit as the smaller short time tasks that fit into your marketing goals. A marketing goal is ideally planned for long term achievements.
In any case, the marketing objectives of any organization should be set realistically and should be adhered too in a consistent manner. A visible objective will also act as a driving force for your employees and help them stay motivated towards the achievement of these set objectives and goals thereof. So, go SMART in the right spirit and make your organization stay on top.