CHAPTER 1: LESSON 2

GOALS OF MARKETING

LEARNING OBJECTIVE:

The learners shall be able to discuss the goals of marketing,

To make the most of precious and often scarce marketing pesos, business owners must
develop and implement effective marketing strategies. Any strategy employed should be
designed with a certain goal in mind. In order to be of maximum value, the goals should be sync
with the goals of the business

THE NATURE OF MARKETING GOALS

Marketing goals are statements of what results the company wants to achieve with its
marketing efforts. Just like any other goal, marketing goals should be clear

Goals must be credible and realistic as well. As an example, Disney's goal is to make people
happy. This is the mission guiding all of its business and marketing activity. It's a clear vision,
and it's measured along the way. When there's a question about the relevance of a particular
activity, it's always reconciled to that crystal clear, overall goal of making people happy.

Setting realistic marketing goals contributes to marketing success. Making goals too easy isn't
realistic. Easy goals require no stretch. Stretching will produce the best results. But setting
goals that are unreasonably high will cause the firm to become frustrated, discouraged and
defeated.

The biggest reality test is whether goals are credible. The firm should believe in its goals.
Believability is what motivates toward accomplishment. The company must believe its goals so
that it would be motivated to complete them.

The company's marketing goals should be recorded. This allows for tracking, evaluating
measuring and managing. There's nothing better than scratching an item off a to-do list. The
completion of simpler goals is the foundation of loftier more challenging goals need to be
prioritized especially when two goals are of equal importance

Prioritization relates to focus. Focus on completion as well as importance.

This doesn't imply that the company should work on goals one at a time. In today's fast-paced
environment, multitasking is the name of the game. Managing multiple goals and activities
simultaneously can be done, directing focus and resources as situations change and progress

Goals are different from objectives. They should not be used interchangeably because it will
create confusion.

1. Marketing goals - top-level broad goals to show how the business can benefit from channels.
So, goals are the broad aims used to shape strategy. They describe how marketing will
contribute to the business in key areas of growing sales, communicating with audience and
saving money.

2. Marketing objectives - Specific SMART objectives to give clear direction and commercial
targets. Objectives are the SMART targets for marketing which can be used to track
performance against target. The SMART mnemonic helps as a test or filter which the firm can
use to assess the quality of measures. SMART is:

a. Specific - the detail in the information sufficient to pinpoint problems or opportunities; the
objective sufficiently detailed to measure real world problems and opportunities

b. Measurable-a quantitative attribute to be applied to create a metric

c. Actionable - the information be used to improve performance

d. Relevant - the information be applied to the specific problem faced by the marketer

e. Time-bound - objectives be set for different time periods as targets to review against

3. Marketing KPIs - Key performance indicators (KPIs) are used to check that the marketing
activities of a company are on track. KPIs are specific metrics which are used to track
performance to make sure the firm is on track to meet specific objectives. They are sometimes
known as performance drivers or critical success factors for this reason.

DEVELOPING MARKETING GOALS

Goals are expressed in broad terms and do not have specific information about where the
organization currently stands or where it wishes to be in the future. A goal is not specific and is
not based on a specific benchmark. Goals are important because they indicate the direction in
which the company attempts to move and the set of priorities it will utilize in evaluating options
for making decisions.

It is vital to consider all functional areas in setting the goals of the organization. In formulating
goals for a marketing plan, it is vital to bear in mind that goals must be attainable, consistent,
comprehensive and a bit intangible. Goals might become ineffective and dysfunctional if these
things are not given focus.

1. Attainability - Goals must be realistic so that important parties who will be reaching must see
each goal as reasonable. Assessment of the internal and external environment is essential in
order to determine if a goal is realistic. It is possible for instance for a firm holding the second
place in the market share to beat the leading brand and become the industry leader if the only
difference between them is just 1%. All things equal, employees of the company will be
motivated to work hard toward the goal of becoming number one in the industry. Unrealistic
goal is demotivational, because it reflects that management is irrational. Given that one of the
chief benefits of formulating goals is to motivate employees in the direction of better
performance, setting unrealistic goals can cause chaos.

2. Consistency- Besides being realistic, management should exert to set Books that are
consistent with one another. Increasing market share and extending effort to have the highest
profit margins in the industry are equally reasonable goals by themselves but together they are
inconsistent Goals to enhance both sales and market share would be consistent just like goals
to improved customer service and customer satisfaction. Usually he goals of reducing inventory
levels and enhancing customer service are incompatible. Goals across and within functional
areas should also nt together. This is a major concern especially in big organizations. It
emphasizes the necessity for a great deal of information sharing during goal-formulation
process

3. Comprehensiveness - The process of goal-setting must be comprehensive Simply it means

that each functional area must be able to formulate its own goals that relate to the
organization's goals. For instance, marketing department will be at a loss if goals are set only in
terms of advancing technology with the firm's products. The goals should be stated so that both
marketing and research and development department can work jointly to help proceed with the
organizational goal of offering the most technologically advanced products. Marketing needs to
work on the demand side of this effort through measuring customer needs and staying attuned
to trends in the external environment. While research and development will focus on the supply
side of conducting basic and applied research and staying abreast of all key technological
innovations. The roles of all parties in the organization should be clarified by goals. Functional
areas that do not go with any of the organization's goals should inquire their need for future
resources and their ability to obtain them.

4. Intangibility - Goals should be intangible. Planners often confuse goals with strategies,
objectives and even tactics. A goal is not an action the firm can take. It is an outcome the
organization wishes to realize. Actions like hiring 200 new salespeople or making double the
advertising budget are not goals. Both could be attained by the company with adequate
resources Having the best trained sales force and the most creative and effective advertising
campaign are examples of good goals. The use of best trained, most creative and most
effective is the intangibility part. These terms are motivational because they promote
comparisons with competitors. They are continually pushed for superiority, as their open-ended
nature gives room for improvement.

GOALS OF MARKETING

Companies may add other goals, but they must be thought of carefully. Here are some
examples of noteworthy goals:

1. Identifying target market - Target market is the segment of the market most likely to purchase
the firm's products or services. The marketing goal can be to use market research to pinpoint
specific demographic characteristics, such as age, gender, income and educational level that
help identify the ideal