10.4 Step 2: Market-Product Focus & Goal Setting
Objectives are what organizations want to accomplish—the end results they want to achieve—in a given time frame. In addition to being accomplished within a certain time frame, objectives should be realistic (achievable) and be measurable, if possible. “To increase sales by 2 percent by the end of the year” is an example of an objective an organization might develop. You have probably set objectives for yourself that you want to achieve in a given time frame. For example, your objectives might be to maintain a certain grade point average and get work experience or an internship before you graduate.
The completed SWOT analysis (Step 1), informs the organization’s marketing objectives. Given the strengths, weaknesses, opportunities, and threats, companies can determine indicated actions by leveraging their strengths, shoring up their weaknesses, capitalizing on opportunities, and turning threats to their advantage.
A firm’s marketing objectives should be consistent with the company’s objectives at other levels, such as the corporate level and business level. An example of a marketing objective for PepsiCo might be “to increase by 4 percent the market share of Gatorade by the end of the year.”
The marketing objective helps the firm allocate resources and divvy up the tasks that employees need to do for the company to meet its goals. A great tool to start goal-setting for the organization is shown in Figure 10.9: “Ansoff Matrix”. Based on the SWOT analysis, marketing teams can determine their go-to-market strategies by using this tool.
Market penetration strategies focus on increasing a firm’s sales of its existing products or services to its existing customers. Companies often offer consumers special promotions or low prices to increase their usage and encourage them to buy products. When Frito-Lay distributes money-saving coupons to customers or offers them discounts to buy multiple packages of snacks, the company is utilizing a penetration strategy. The Campbell Soup Company gets consumers to buy more soup by providing easy recipes using their soup as an ingredient for cooking quick meals.
Product and service development strategies involve creating new products/services for existing customers. A new product or service can be a totally new innovation, an improved product/service, or a product/service with enhanced value, such as one with a new feature. Cell phones that allow consumers to charge purchases with the phone or take pictures are examples of a product with enhanced value. A new product/service can also be one that comes in different variations, such as new flavours, colours, and sizes. Mountain Dew Voltage, introduced by PepsiCo Americas Beverages in 2009, is an example. Keep in mind, however, that what works for one company might not work for another. For example, just after Starbucks announced it was cutting back on the number of its lunch offerings, Dunkin’ Donuts announced it was adding