Marketing Promotional Objectives

Unit 7: Marketing and Promotional Strategy

E4:

An objective represents targets that need to be reached to achieve the company’s aims. These objectives can affect the way businesses operate. Business organisations can achieve their set objectives in short periods or/and long periods. These are known as short-run objectives and long-run objectives. A short-run objective lasts up to one year, and it is used to achieve long-run objectives. A long-run objective last up to three or five years, and they are quite difficult to reach.

Marketing objectives are objectives that can help to decide where share of the market- size and revenue is needed to achieve the company’s mission and objectives. Marketing objectives also decides how the elements of marketing mix can help achieve these in each customer segment. Here are some examples of marketing objectives:

To increase sales revenue
To maintain/improve product and brand image
To increase market share
To give quality assurance

Promotional objectives are objectives that are used to draw customer’s attention to a product or service, or even a business. Here are some examples of promotional objectives:

To make consumers aware of a product or service
To remind existing customers of a product so, they might re-purchase the product
To reach a targeted audience which might be geologically dispersed
To develop or improve the image of the business

To achieve its promotional objectives, a business has to set its promotional strategy. A well-known mnemonic used to describe a promotional strategy deigned to persuade a customer to make a purchase is AIDA. Here is an explanation of AIDA:

A- a customer’s attention is captured, and he or she is made ...

This is a preview of the whole essay

To make consumers aware of a product or service
To remind existing customers of a product so, they might re-purchase the product
To reach a targeted audience which might be geologically dispersed
To develop or improve the image of the business

A- a customer’s attention is captured, and he or she is made aware of the product (good and service)
I- the impact of the promotion stimulates the customer’s interest
D- the customer is persuaded, he or she is deprived by not having the product, and this helps to desire for it
A- action involves the purchase of the product

All objectives including, marketing and promotion objectives should be measurable so, they can be achieved, effectively. This is known as SMART objectives. Here is an explanation of SMART:

Specific- the target should identify a particular item or area
Measurable- the target should have a quantity, percentage or monetary so, business can have an accurate target to aim for
Attainable/Agreed- the target must be attained by everyone who can have an influence on the outcome and agreed by everyone who can influence the outcome
Realistic- the target have to be tough but not too tough, or else business will give up without attempting because, the target is impossible to reach
Timely- the target should have a deadline so that, when that deadline arrives, businesses can make sure if, they have achieved the target

Here are some examples of measurable objectives:

Marketing objectives:

To gain 23% of the market for sport shoes by September 2006

To increase sales for mobile phones by 3% over the next 18 months

Promotional objectives:

To increase awareness of the danger of aids in France form 12% to 15% by June 2004
To increase trail of X washing powder form 2% to 5% of our target market by January 2005

Once a business organisation has set its objectives, it must decide how it will achieve them. There are number of ways to develop a successful strategy- most are related to increasing sale, developing products or markets. Amongst these are:

Market Penetration
Market Development
Product Development
Diversification

Looking at the table (shown above), the market penetration strategy offers the lowest risk of failure, because both product and market are known. The diversification strategy offers the highest risk because, both the product and market is new. The market and product development strategies offer some risk, more so if an entirely new product is developed rather than modifying an existing market.

I have decided to set the following marketing and promotional objectives for my service (Right Track account):

Marketing Objectives:

To maximise profitability- This objective can be achieve by selling my service at a high standard and at a reasonable price that will satisfy me and my customers

To increase awareness of the service among target group (that is, between sixteen and seventeen of age)- This objective can be achieved by using appropriate media to target an identified target audience at a specific area, e.g. promoting the business and the service at university fairs to all graduates

To increase brand loyalty- This objective can be achieved by building repeat purchase of the service by advertising through televisions and radios or buy gift gifts and special offers

To increase market share- This objective can be achieved by, improving the product; reducing the price depending on the price elasticity of demand (Price elasticity of demand involves making the product or service more available to more people); increasing the distribution (place); and increasing promotional activity (promotion)

Promotional Objectives:

To reach a target audience which might be geologically dispersed- This objective can be achieved by advertising through different types of media across the world, e.g. television commercials, radio commercials, newspapers, posters, etc

To remind existing customer of the service so they might re-use the service again- This objective can be achieved by using appropriate media to remind existing customers at a specific area of the service. For example, television commercials about the service, targets new and existing customers in homes and in television stores

To show the service is better than that of a competitor- This objective can be achieved by differentiating the service from other competitors’ service

To develop or improve the image of the business (that is HSBC Bank)- This objective can be achieved by using corporate advertising to promote the image of the business

Created by Baljinder Duhra -