Marketing Planning - MOD004454: Topic 7 - Setting Marketing Objectives

MBA
Marketing Planning - MOD004454
Topic 7 – Setting Marketing Objectives
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MOD004454 Marketing Planning
Contents
Topic 7 – Setting Marketing Objectives .................................................................................. 1
7.1 Introduction ...................................................................................................................... 3
7.2 Selling the Idea ................................................................................................................. 4
7.2.1 Mission Statement ..................................................................................................... 4
7.2.2 Corporate Goals ......................................................................................................... 6
7.2.3 Further Reading ......................................................................................................... 8
7.3 Formative Exercise 1 ....................................................................................................... 10
7.4 SMART Marketing Objectives ......................................................................................... 11
7.5 Connecting Marketing Objectives with SWOT ............................................................... 12
7.6 Formative Exercise 2 ....................................................................................................... 13
7.7 Additional Reading.......................................................................................................... 14
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7.1 Introduction
Having spent considerable time on the first step of the marketing planning process;
situation analysis (answering the question ‘where are we now?’), we move on this topic to
the second step of the marketing planning process; objectives (to address the question
‘where do we want to be?’).
But first, we must make sure that we have a full understanding of the overall corporate
agenda so that the marketing objectives we set are rooted in the goals and mission of the
organisation. After all, the purpose of marketing is to enable the organisation to achieve
its goals. There are two major factors that we need to keep in mind when setting the
marketing objectives: the results of our SWOT analysis and the corporate objectives.

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7.2 Selling the Idea
Let’s begin by reminding ourselves of the marketing planning process to put this topic into
context:
Before drilling down to their specifics, we must sit the marketing objective themes within
the organisation’s vision, mission, and goals. The vision reminds us why the organisation
exists.
7.2.1 Mission Statement
The mission statement is a statement of intent that provides a focus for the marketing
objectives and aids marketing planning. It helps to ensure concentration on the core
business. Both cascade down into the corporate goals and in turn inform the marketing
objectives. Here are some examples:

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Google’s mission is to “organise the world’s information and make it universally accessible
and useful.”
Starbucks’ mission is to “inspire and nurture the human spirit – one person, one cup and
one neighbourhood at a time.”
We can see how their goals have reflected this mission in their achievements last year:
• “Launches Cold Brew iced coffee and Evolution Fresh™ handcrafted smoothies.
• Announces sixth two-for-one stock split.
• Commits to hiring 10,000 opportunity youth by 2018.
• Expands Starbucks College Achievement Plan to offer full tuition coverage for all
four years of an undergraduate degree for qualifying U.S. Starbucks partners.
Commits to 25,000 partners graduating by 2025.
• Reaches 99% ethically sourced coffee milestone.
• Opens stores in Panama.
• Total stores: 22,519 (as of June 28, 2015).”

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Jaguar Land Rover aims to:
• “Demonstrate leadership in sustainable business practices;

• Create vehicles that meet our future customers’ needs with less environmental
impact;
• Improve lives in our wider communities;
• Engage our people, customers, and partners.”
Watch the video on this page: Jaguar Land Rover Environmental Innovation.
7.2.2 Corporate Goals
Corporate goals give a sense of purpose and direction to all functional departments and
provide focus for management. They help departments to consistently direct their
activities towards the same goals. Like those of other departments, the marketing
objectives should flow down from these. Without the collective effort and input from all
departments the corporate objectives become meaningless and cannot be achieved
(Wong, H. Y. et al., 2011).

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There are many influences on corporate objectives, both internally and externally, as we
have seen during our marketing audit:
Corporate objectives are not limited to profit and are sometimes presented in a Balanced
Scorecard (Kaplan and Nortan, 1996).

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7.2.3 Further Reading
Whilst the BSC was developed in the 90s, I'd like you to read a more recent article by
Kaplan and Norton (2007) entitled 'Using the Balanced Scorecard as a Strategic
Management System'. It is published in the Harvard Business Review, Jul/Aug 2007, Vol.
85 Issue 7/8, p150-161. I found it by simply typing in the title of the article in the search
box on the University Library page. You should do the same.
I've managed to locate a really interesting article by Robert Eccles (1991) which also
resonated with me when I studied for my MBA in the late 90s.
Eccles argues that there is a need to shift from treating financial figures as the foundation
for performance measurement to treating them as one among a broader set of measures.
Tracking these non-financial measures is one thing; but giving them equal (or even
greater) status in determining strategy, promotions, bonuses and other rewards is
another. New strategies and competitive realities demand new measurement systems.
Eccles argues that grafting new measures onto an old accounting driven performance
system or making slight adjustments in existing incentives accomplishes little.
Enhanced competitiveness depends on starting from scratch and asking (Eccles, 1991,
p.132):
• "Given our strategy, what are the most important measures of performance?"
• "How do these measures relate to one another?"
• "What measures truly predict long-term financial success in our business?"
Eccles advocates the need to develop a new information architecture (p.133), which is an
umbrella term for the categories of information needed to manage a company's
businesses, the methods the company uses to generate this information, and the rules
regulating its flow. In most companies (he argues), the accounting system implicitly
defines the information architecture. Other performance measures are likely to be

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informal records that operating managers keep for themselves, for instance, and they are
rarely integrated into the corporate-driven financial system.
The design for a new corporate information architecture begins with the data that
management needs to pursue the company's strategy. This may sound like a truism, but a
surprising number of companies describe their strategies in terms of customer service,
innovation or the capability and capabilities of their people, yet do little to measure these
variables.
You should now read 'The Performance Measurement Manifesto' by Robert Eccles (1991)
which may be found in the Harvard Business Review, Jan/Feb1991, Vol. 69 Issue 1, p131-
137.
I found it by simply typing in the title of the article in the search box on the University
Library page. You should do the same.

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7.3 Formative Exercise 1
Gather your organisation's vision, mission statement, and business plan.
What are the explicit goals suggested in those documents?
Share your thoughts on the discussion board (Discussion 7.3 on the LMS).

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7.4 SMART Marketing Objectives
Marketing objectives are set in specific areas, for example:
• Market share;
• Brand awareness;
• Profit/sales/revenue;
• Customer acquisition/retention;
• Entering a new marketing;
• Introducing a new product/service;
• Changing brand perceptions.
It is important that marketing objectives are stated in SMART terms or it will be very
difficult, if not impossible to measure them. Here is an example of a SMART marketing
objective: “to increase sales of X product amongst Y target audience by 10% by December
2016.”

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7.5 Connecting Marketing Objectives with SWOT
The SWOT analysis presents a series of opportunities and threats. Your marketing
objectives should be rooted in exploiting/avoiding one or more of these, as well as being
linked to the overall strategic direction of the organisation. For example, you can see how
a marketing objective around launching an online grocery shopping loyalty scheme, or
developing share of the online grocery shopping market could stem from this work-in-
progress SWOT.

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7.6 Formative Exercise 2
What are your marketing objectives?
Re-visit your SWOT and identify a new market opportunity. Try to formulate at least one
SMART marketing objective demonstrating how it links to your SWOT and supports your
organisation’s corporate goals. Share online (Discussion 7.6 on the LMS) to receive peer
feedback.

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7.7 Additional Reading
1. Chapter 12 of Drummond, G., Ensor, J. and Ashford, R. (2007) Strategic marketing:

planning and control, 3rd edition. Oxford, Routledge.
2. Chapter 4 of Doyle, P. and Stern, P. (2006) Marketing management and strategy,
4th edition. Harlow, Prentice Hall.
3. Dess, G. et al. (2014) Strategic management: text and cases. Michigan, McGraw-
Hill.
4. Chapter 1 of Mullins, J.W. and Walker, O.C. (2013) Marketing management: a
strategic decision-making approach. New York, McGraw-Hill.
5. Marshall, G. and Johnston, M. (2014) Marketing Management. McGraw-Hill.
6. McDonald, M. (2008) Malcolm McDonald on marketing planning understanding
marketing plans and strategy. London, Kogan Page.
7. Chapters 1 – 2 of McDonald, M. (20011) Marketing plans: how to prepare them,
how to use them. Chichester, John Wiley & Sons.
8. Chapter 5 of Wong, H. Y. et al. (2011) Building a marketing plan: a complete guide
(1). Business Expert Press, New York.
9. Gaddefors, J. and Anderson, A.R. (1999) Market creation: the epitome of
entrepreneurial marketing practices, Journal of Research in Marketing and
Entrepreneurship, Vol10 Iss1, pp19-39.

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MBA

Marketing Planning - MOD004454

Topic 7 – Setting Marketing Objectives

East Road, Cambridge, CB1 1PT

Bishop Hall Lane, Chelmsford, CM1 1SQ

Topic 7 – Setting Marketing Objectives .................................................................................. 1

7.1 Introduction ...................................................................................................................... 3

7.2 Selling the Idea ................................................................................................................. 4

7.2.1 Mission Statement ..................................................................................................... 4

7.2.2 Corporate Goals ......................................................................................................... 6

7.2.3 Further Reading ......................................................................................................... 8

7.3 Formative Exercise 1 ....................................................................................................... 10

7.4 SMART Marketing Objectives ......................................................................................... 11

7.5 Connecting Marketing Objectives with SWOT ............................................................... 12

7.6 Formative Exercise 2 ....................................................................................................... 13

7.7 Additional Reading.......................................................................................................... 14

All content is Copyright Anglia Ruskin University unless otherwise stated.

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.2 Selling the Idea

7.2.1 Mission Statement

All content is Copyright Anglia Ruskin University unless otherwise stated.

All content is Copyright Anglia Ruskin University unless otherwise stated.

Jaguar Land Rover aims to:

• “Demonstrate leadership in sustainable business practices;

7.2.2 Corporate Goals

All content is Copyright Anglia Ruskin University unless otherwise stated.

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.2.3 Further Reading

All content is Copyright Anglia Ruskin University unless otherwise stated.

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.3 Formative Exercise 1

Gather your organisation's vision, mission statement, and business plan.

What are the explicit goals suggested in those documents?

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.4 SMART Marketing Objectives

Marketing objectives are set in specific areas, for example:

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.5 Connecting Marketing Objectives with SWOT

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.6 Formative Exercise 2

What are your marketing objectives?

All content is Copyright Anglia Ruskin University unless otherwise stated.

7.7 Additional Reading

1. Chapter 12 of Drummond, G., Ensor, J. and Ashford, R. (2007) Strategic marketing:

All content is Copyright Anglia Ruskin University unless otherwise stated.

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