Week 2: Marketing & Firm Value, Objectives & Missions Flashcards
What is an “Objective”?
An end to be achieved
Should be designed to address issues/challenges identified and take your firm forward into the future
An objective (goal) is a desired effect
Objectives must be SMART
- Specific
- Measurable
- Actionable
- Realistic
- Timely
What are “Corporate Objectives”
They should consist of both qualitative & quantitative components
- A mission statement
- Performance objective
May be BHAG’s
- Big
- Hairy
- Audacious
- Goals
What are “Performance Objectives”
The following stakeholder’s needs must be satisfied
- Shareholders
- Employers
- Manager
- Creditors
- The public (societal marketing)
Performance is determined by the imperatives of stakeholder requirements, measured in terms of financial objectives
- ROI, ROA, EPS
- dividends, profitability, cash flow etc
Marketing is only one area of the organisation that contributes to these
What are “Marketing Objectives”
Corporate performance objectives need to be translated into marketing performance objective regarding:
- Sales
- Market share
- Profitability
This is what you will do as a product (brand) marketing manager after your SWOT
Where are the objectives derived from?
SBU vs. Product
SBU:
- Share of hearts, minds, markets
- Marketing & finance
- Product & portfolio management
- Channel & sales force management
- Pricing
- Integrated marketing communication
- Margins & profits
Product:
- SAME, JUST ADD
- Customer profitability
What does a mission statement say?
What business are we in?
- Who are we?
- Who are our customers?
- What is our operating philosophy?
- What value can we provide?
- What are our concerns or interests as they relate to our employees, our community, society in general and our environment
How do we evaluate if it’s a good “mission statement”?
THE “ACID” TEST
A good mission statement is:
- Realistic
- Creative
- Unique
- Distinctive
- Motivating
- Durable
Piercy’s model of Mission Statements
Organisational Philosophy
- Who do we want to be?
Organisational Key Values
- How do we want our people to behave?
Product Market Domain
- Where are we going to operate
Critical Success Factors
- What do we have to be good at in this industry?
Business Definition
SBU & Product level
Business definition & scope is the starting point for strategy development
The way a business is defines determines:
- The nature of the markets the firm compete in
- The products and substitutes (existing & new) that service or may service that market
- The nature of the competition
- The capabilities required to compete successfully in the industry
These decisions involve choices concerning
WHERE to compete,
HOW to compete and
WHO to compete with
Scope
Scope sits within the business definition and refers to the specific focus of the marketing plan
It will be bound by a market or segment, or a particular category or product of the business
