Chapter 11: Setting the objectives of the marketing strategy

Question 1

Defining Objectives of the marketing strategy

Answer 1

• The first vital part of creating a marketing strategy is to define its objectives.
• Clearly defined objectives will help people in different parts of the company understand their role in the marketing process.
• Objectives will also make it easier for the company to analyse whether the strategy is working or not.

Question 2

Obejctives should consider four key areas:

Answer 2

1. What type of marketing strategy does the company want to pursue?
2. What are the aims of the marketing strategy?
3. How will the success of the strategy be measured (e.g. profits, value of sales, market share)?
4. Within what time period should the objectives be achieved? It could be a short-term strategy or be for a period of several years.

Question 3

1. What type of marketing strategy does the company want to pursue? There are three broad options:

Answer 3

• Undifferentiated or mass – Appealing to the whole market, or a large section of it, with a single product; for example, many branded wines available in supermarkets and other large retailers.
  *** Niche **– Aiming a product at a specific segment of the market; many wines are niche products.
• Multiple – Either appealing to numerous segments with one brand (each segment will potentially require a different marketing approach) or launching several brands each targeting different segments.

Question 4

2. What are the aims of the marketing strategy? Example:

Answer 4

• launch a new product;
• communicate improvements to existing product;
• increase sales;
• increase market share;
• improve brand awareness;
• improve brand identity;
• attract new consumers.

Question 5

Marketing Budget

Answer 5

• Marketing can be a very expensive activity and, while some large companies have substantial budgets, most can only set aside a small amount of money to promote their products.
• The budget should be set by reference to the profits that the marketing campaign is expected to produce; there is little point to a marketing campaign that costs more than it ever brings in.