Page 70 - Foundations of Marketing

Planning, Implementing, and Evaluating Marketing Strategies | Chapter 2 37

should be measurable, which allows the organization to
track progress and compare outcomes against beginning
benchmarks. For instance, if an objective is to increase mar-
ket share by 10 percent in the United States, the company
should be able to measure market share changes accurately
to ensure that it is making gains toward that objective.
Third, a marketing objective should specify a time frame
for its accomplishment, such as six months or one year.
Finally, a marketing objective should be consistent with
both business-unit and corporate strategies. This ensures
that the company’s mission is carried out consistently at
all levels of the organization by all personnel. Marketing
objectives should be achievable and use company resources
effectively, and successful accomplishment should contrib-
ute to the overall corporate strategy. A marketing strategy
ensures that the firm has a plan in place to achieve its mar-
keting objectives.
A marketing strategy is the selection of a target mar-
ket and the creation of a marketing mix that will satisfy the
needs of target market members. A marketing strategy artic-
ulates the best use of the company’s resources to accomplish
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its marketing objectives.
Selecting the Target Market

Selecting an appropriate target market may be the most
important decision a company makes in the strategic plan-
Marketing Objectives
ning process and is a key to strategic success. The target
What is the Dominican Republic Tourism Board hoping to achieve
market must be chosen before the organization can adapt
with this ad?
its marketing mix to meet the customers’ needs and prefer-
ences. Take a look at the advertisement for the Dominican
Republic Tourism Board. You see a charter fishing boat and the question “What’s on your
mind?” in a text message-style bubble. Based on the image and the words in this ad, you can
assume that the marketers are trying to reach a target market that is seeking to unplug from the
office and from the demands of everyday life. If a company selects the wrong target market,
all other marketing decisions are likely to be in vain. Toyota, for example, did not properly
identify its target market when introducing the Yaris sedan in China. A success with middle-
class consumers ages 18 to 34 elsewhere around the world, the Yaris was a spectacular flop
in China. Toyota failed to realize until it was too late that young, middle-class Chinese con-
sumers are very price sensitive and the Yaris was priced beyond their reach. Those Chinese
12
consumers who could afford the car tended not to like the styling.
Careful and accurate target market selection is crucial to productive marketing efforts.
Products, and even whole companies, sometimes fail because marketers misidentify the best
target market for their products. Organizations that try to be all things to all people rarely sat-
isfy the needs of any customer group very well. Identification and analysis of a target market
provide a foundation on which the company can develop its marketing mix.
When exploring possible target markets, marketing managers try to evaluate how entry
could affect the company’s sales, costs, and profits. Marketing information should be orga-
nized to facilitate a focus on the chosen target customers. Accounting and information sys-
marketing strategy A plan
tems, for example, can be used to track revenues and costs by customer (or customer group).
of action for identifying and
The firm should offer rewards to managers and employees who focus efforts on profitable analyzing a target market and
customers. Firms should develop teamwork skills that promote a flexible customer orientation developing a marketing mix to
that allows the firm to adapt to changes in the marketing environment. meet the needs of that market

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