PRODUCT PERFORMANCE

OBJECTIVES

- R . ARUN
 Definition

• Product performance objective is a marketing strategy which

is mainly designed to focus on

– Particular product
– Particular market
– Expected market share
– Exponential market growth for one
product/product line
• The successful development of a product demands
the product performance objectives be clearly
defined and agreed to as early as possible during
the product development cycle, typically during the
products requirement phase.
 Importance
• Market share
• Competitive edge
• Product positioning
• Branding
• Filling the gaps of the market
• Better service
• Better distribution channel
• Globalization
 MARKETING OBJECTIVE

• Marketing objective have to be set in all key areas of the

business which includes
 Profit
 sales volume
 market share
 productivity
 research and development and innovation.

• The objectives must be specified in clear-cut readily

measurable terms and the should be quantified with specific
time schedules, so that they can be evaluated against
Performance.
 Strategic market objectives

• A bigger market share

• Higher product quality than rivals
• Lower costs relative to key competitors
• Broader or more attractive product line than rivals
• A stronger reputation with customers than rivals
• Superior customer service
• Recognition as a leader in technology and product innovation
• Wider geographic coverage than rivals
• Higher levels of customer satisfaction than rivals
For setting a marketing objective company has to define the
following questions :

 Growth at what rate ?

 Growth at what cost ?
 Growth at what risk ?
 Growth in comparison to whom ?
 Profits through which route ?
 What is trend of profit in the particular business ?
 What position can the business unit take in its industry to
carve out the profit desired ?
• Marketing objectives take their cue from priorities assigned by
corporate strategy.

Before setting marketing objective all the

information regarding the present market to be studied by the
corporate people and a strategy is to be developed
accordingly .
• Marketing objectives will specify the growth to be achieved by
the units:

» Quantum of growth
» Rate of growth
» Timing of growth
• Marketing objectives will cover all key ares such as :

– Sales volume
– Sales revenue
– Market share
– Profit
 COMPANY OBJECTIVE

• A business/company objective is the organisations

goal or a strategic position it desires to attain.

• Usually it is a step in the strategy.

• Objectives are similar to goals, but often they are

quoted success/failure rather than quantifiable
metrics.
 PROPERTIES
• Produce latest and innovated quality products.
• Strictly follow all the guidelines and standards.
• Having a group of highly qualified, experienced and
professional personnel.
• Practice ethical marketing and promotion of products
• Ensure customer satisfaction by keeping prices at
affordable levels
• By inviting new ideas, creative innovations and
bringing together diverse concepts
 TYPES OF OBJECTIVE
• Financial objective

• Strategic market objective

• Internal operation objective

• Innovation and learning objective

 FINANCIAL OBJECTIVES

• Financial objectives focus on achieving acceptable

profitability in a company’s pursuit of its
mission/vision, long-term health, and ultimate
survival.

• Financial objectives signal commitment to such

outcomes as good cash flow, creditworthiness,
earnings growth, an acceptable return on
investment, dividend growth, and stock price.
 FINANCIAL OBJECTIVES

» Growth in revenue
» Growth in earning
» Wider profit margin
» Bigger cash flow
» Higher rate of return on investment
» Attractive economic value added performance
» Sustainable increase in market value
» A more diversified revenue base
 INTERNAL OPERATIONAL OBJECTIVES
• Internal operational objectives focus on business process
that have an impact on creating customer value and
satisfaction.

• Internal objectives focus on maintaining the firm’s core

competencies.

• Operational objectives focus on how a company

manages frontline organizational units (plants, sales
districts, distribution centers) and how to perform
strategically significant operating tasks (materials
purchasing, inventory control, maintenance, shipping,
advertising ) .
 INNOVATION AND LEARNING OBJECTIVE

• Innovative and learning objectives focus on activities

that assist to improve and build the company’s value
creating activities.

• It involves increases the firm’s knowledge base and

learning best practices so the company is continually
on the cutting edge.
 SALES OBJECTIVE

• Building product awareness

• Creating interest

• Providing information

• Stimulating demand

• Reinforcing the brand

 Building product awareness

• Several sales promotion techniques are highly effective in

exposing customers to products for the first time and can
serve as key promotional components in the early stages of
new product introduction. 
• Additionally, as part of the effort to build product awareness,
several sales promotion techniques possess the added
advantage of capturing customer information at the time of
exposure to the promotion. 
• In this way sales promotion can act as an effective customer
information gathering tool (i.e., sales lead generation), which
can then be used as part of follow-up marketing efforts.
 Creating interest
• Marketers find that sales promotions are very effective in
creating interest in a product.  In fact, creating interest is
often considered the most important tools of sales
promotion.

• In the retail industry an appealing sales promotions can

significantly increase customer traffic to retail outlets.
 
• Internet marketers can use similar approaches to bolster the
number of website visitors.  Another important way to create
interest is to move customers to experience a product. 
 Providing Information

• Generally sales promotion techniques are designed to move

customers to some action and are rarely simply informational
in nature.
 
• However, some sales promotions do offer customers access to
product information. 
 
 Stimulating Demand

• Next to building initial product awareness, the most

important use of sales promotion is to build demand
by convincing customers to make a purchase. 

• Special promotions, especially those that lower the

cost of ownership to the customer (e.g., price
reduction), can be employed to stimulate sales.
 Reinforcing the Brand

• Once customers have made a purchase sales promotion can

be used both to encourage additional purchasing and also
create purchase loyalty.

• Many companies, including airlines and retail stores, reward

good or “preferred” customers with special promotions, such
as email “special deals” and surprise price reductions at the
cash register.