Marketing objectives and functions

The goals of marketing will reflect the overall objectives of business such as profit maximisation, growth, or the provision of a charitable service. Marketing objectives will therefore differ from company to company but are likely to include some or all of the following:

Analysing market needs. Market research can be used to gather information about consumers’ buying habits and spending patterns. Firms will use this information to identify market opportunities for new products and marketing strategies.

Growth – developing new products. A firm may set the goal of developing the new product or modifying its existing product range to satisfy consumer requirements. Product development can involve the modification of existing product lines, the creation of new products, and technological breakthroughs. For example, the development of laser and fibre optic technology has brought us products such as compact discs and cable television, as well as applications in the healthcare and defence industries.

Growth – entering a new market. A business must choose wisely which markets to enter to sell its products. It may target overseas markets or particular groups of people within a market – for example, luxury cars aimed at high-income groups.

Growth – increasing sales or market share. In a contracting market, i.e. one where the consumer demand is falling, a firm may aim to keep its total sales the same, while sales in the industry as a whole shrink. This can only be achieved at the expense of competitors’ sales and with the help of a very aggressive marketing policy. In expanding markets, for example, in satellite and cable TV systems, it is possible that all firms in the industry will benefit from rising sales, and so the marketing strategy required need not be so aggressive.

Increasing profitability or cash flow. A marketing campaign may be designed to meet profit, cash flow, or in the case of a charity, fundraising targets. A marketing strategy may involve increasing the price of a product, coupled with heavy advertising designed to re-position the product in the consumer’s mind as being of higher quality or possessing characteristics which somehow justify the new, higher price. Placing the product in the right retail outlets will also help to promote sales and profits.

Optimising customer perception of organisation and/or product range. Marketing to increase consumer awareness and improve the image of an organisation and product is an important objective in competitive and quickly changing markets. A firm may wish to improve the image of its product range, either by changing and ‘improving’ the products, or by simply re-marketing them as being improved or different in some way – for example by re-launching the product with a new trademark or logo. Similarly, a firm can enhance its image by sponsoring sports events, making public donations to charities, or simply by improving customer services and after-sale care.

Managing the effects of change and competition. Market conditions of demand and supply are in a constant state of change due to fluctuations in the economy, changes in the behaviour of competitors, the introduction of new technology, and alterations in government policy. Firms therefore need to continually alter and develop their product ranges to match ever-changing consumer wants and keep pace with the product and marketing developments of rival firms.

Дата добавления: 2015-12-08