Unit 1.3.3 - marketing objectives and strategies

Marketing objectives are that goals that a business is trying to achieve though the process of marketing.

The first objective for a start-up business is survival.

After that they will try to increase the profit of the business .

Other objectives of the business:-

  • Increasing revenue

  • Increasing the market share(% of total sales a company holds in the market )of the business to obtain a competitive edge(an advantage a company or a product have over it's competitors) in the market.

  • Building a good brand image by exploiting unique selling points or investing in promotion activities through advertisement and social media.

To achieve these objectives businesses will have to be ‘SMART’ as in specific, measurable,agreed , realistic and time specific.

The product life cycle: t's the different stages a product passes through over time.

  • Development stage: it's where the product is being researched and designed. During this stage business will spend to develop the product so the costs will be higher while their will be no sales ,so no revenue.

  • Introduction stage: the stage where the product will be launched. The initial sales will be low. So the product to get recognized by more people businesses will have to promote more increasing the promotion cost. So businesses may increase the price of the product to cover up these costs,but some businesses may set the prices low to break into the market.

  • Growth: the stage where the sales will grow rapidly , there'll be an increasing number of customers. Unit costs may fall at this stage since the production will increase due to higher sales resulting in an increased profit. This may attract competitors resulting sales to slow down .

  • Maturity and saturation: at this stage growth of sales will stop. The product will already will be established at sales will be at it's highest point while some businesses will be forced out of the market due to increase in competition resulting in less competition.

    At this stage businesses will use extension strategies* to extend the life of the business.

  • Decline: the sales of the product will decline due to the changes in consumer tastes ,new technology, or introduction of new products.

    *Extension strategies are used to prolong the product life .they can be done by:

    • Product adjustments .

    • Promotion.