marketing by objectives spx seminar

8/7/2019 Marketing by Objectives SPX seminar

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MARKETING BYOBJECTIVESExploiting marketing excellence and efficiency

Richard Kohn [email protected]
mailto:[email protected]:[email protected]


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Introduction

What will we cover today?

Objectives, strategies and tactics

Marketing objectives, why bother?

Strategic planning and marketing objectives

What are marketing objectives?

Identifying a good marketing objective

Prioritizing/choosing your marketing objective Case study: MasterCard priceless

Q&A


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Term Metaphor Definition

Objective Destination Goals you need to achieve:

Specific

Measurable

Achievable

Relevant Timebound

Strategies Road How you will go about achieving your goals

Role

Positioning

Tactics Vehicle Specific marketing mix elements and

initiatives you will employ to achieve the

strategy:

TVC

Outdoor/trade activities

Sampling

Objectives, Strategies & Tactics


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The Brand Building Blueprint

Individual Brand Positioning

The way we want customers to perceive,

think, and feel about our brand relative to competition.

Business Objectives

--Volume -- Profit -- Share

Messaging

Obj/Strat

Merchandising

Obj/Strat

Promo

Obj/Strat

Marketing Objectives

-- Penetration -- Loyalty

-- Conversion -- Share of Requirements

-- Frequency

Medical Con

Obj/Strat

Tactics - Ideas that Implement The Positioning (and achieve Objectives!)


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Marketing Objectives

The growth drivers of the brand

Are about motivating consumer behavior

The overarching behaviorthat is needs to be achieved in

order to realize the business objectives (which will becontained in the budget, forecast or plan) such as

Sales

Market share

Profits Identify what the marketing plan needs to do to

achieve business objectives


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Get 25% of current Dove & combinedusers to switch 35% of their beauty

care regime to Dove by 2013

To make women feel more beautiful every day bychallenging todays stereotypical view of beauty

Increase loyaltyamongst current users

by 10% by 2014

Measure Measure Measure

Consumerloya

lty

program

focusin

gon

realbeautyliesw

ithin

Packaging

developmentfor

consumptionon

the

go

Newcampaign

focusingon

specificallyyoung

adultsandthe

ir

beautystrength

and

weaknesses

Measure Measure

Educateconsum

ers

viacampaignon

how

oftenhairnee

ds

conditioning

Packaging

developmenttom

eet

the3.9

timesaw

eek

andbuyofhaircare

productsonce

a

month

Measure Measure Measure

Newcampaignfoc

using

onDoveproviding

more

naturalbeautycareand

stands

for

realbe

auty

lieswithin

Productoptimalisation:

Reach50%

prefe

rence

inblindproductteston

Consumerpric

e

promotiononcr

oss

buyingDoveprod

ucts

Become market leader of all segments within the market womens essential beauty products.

Achieve a market share position from 35% to 45% within 3 years in all the segments.

Increase frequency amongstConditioner users from 1.3times a week to 3.9 times a

week by 2013

Increase awarenessamongst 20-30 yrs to

40% by 2013

Measu

re

DevelopmentofDove

youngadultskin

care

Case: Dove Brand Strategy House


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Growing Category Conversion LoyaltyFrequency

Win new buyers for the

category or re-attractformer users to the

category

Increase penetration of

brand among category

buyers/switching

Non-buyers of category Buyers of category

Reduce parallel usage

by increasing loyalty ofcurrent buyers of the

brand

Increase usage

frequency or occasions

among own brand

buyers or increase

purchase size

Grow by increasing

brand loyalty of current

users of your companys

products

Grow by winning people

that currently use other

companies products but

not your companys

Grow by increasing

usage frequency of

current users of the

category

Grow by winning people

that do not yet use the

products in the category

Example

Brand A

Brand B

Brand A

- Example - - Example - - Example - - Example -

The Key Marketing Objectives


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Growing Category Conversion LoyaltyFrequency

Win new buyers for the

category or re-attractformer users of the

category

Increase penetration ofbrand among category

buyers/switching

Non-buyers of category Buyers of category

Reduce parallel usage

by increasing loyalty ofcurrent buyers of the

brand

Need to explain why the

category should be

bought


category should be

bought more often


brand should be bought

at all


brand should be bought

exclusively

Barrier against categoryBarrier against buying

category more oftenBarrier against brand

Barrier against using

brand exclusively

Defining Barriers & Growth Decisions

Increase usage

frequency or occasionsamong own brand

buyers or increase

purchase size


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MO#1: Grow Category/New Users


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MO#2: Frequency/Use Occasions


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MO#2: Frequency/Use Occasions


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MO#3: Conversion/Switching


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MO#3: Frequency/SOR


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MO#4: Loyalty


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Good Marketing Objectives

SMART Specific

Measurable

Actionable

Relevant Timebound

Vertically linked Upwards to the Business Objectives

Achieving the change in behavior specified in the Marketing Objective willlead to achievement of the Business Objectives

Downwards to the Marketing sub-objectives/strategies Strategies will deliver the means to change that behavior


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Marketing ObjectivesPractical Tips

A good marketing objective reads something likethis:

Get [xx%] of [the target market segment] to[purchase for the first time/switch/

increase their weight of purchase /buy morefrequently]

xx brand or product/line extension

within the [period of time]


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What to use, and when

Marketing objectives MUST address a commercial

objective this drives the MO, but

CO: Grow = Increase sales

MO: Requires decisions/judgmentMost attractive source of new volume (new users, use

occasions, SOR, switching, loyalty)

Market situationis the product penetrated or market

saturated? Clarity over the end behavior sought


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Case Study: MasterCard priceless

Target Market

Demo/psycho/attitudeAdult 18+ credit card holders especially those carrying multiple cardsin their wallets, including MasterCard but who are really credit cardpragmatists in that they dont see a particular brand of card as abadge of their worth or social status.

Usage/behaviorThey typically use cash for most of their everyday necessitypurchases and/or another brand of card (such as VISA) for their biggerones (or when they are low on cash); also typically use another card toaccess cash from ATMs.

NeedsThey really only need one card they can always depend on for all kindsof purchases (and have no interest in/dont need a card that issupposed to stroke their egos, set their status, etc.).


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Case Study: MasterCard priceless

Inferred brand marketing objective

Increase the frequency of MarsterCard use occasions by [xx%]among current MasterCard card holders especially for every daynecessity purchases by switching them from using cash or another

branded card within [xx months]

Actually this covers two behaviors that are sought: More frequent use of the card instead of another

More purchases with the card over all (share of requirements)

Is it SMART? SpecificExisting MC card holders users

Measurable xx% of current MC users

AchievableBased upon past campaign successes

RelevantSOR increase and frequency leads to volume goals

Time-boundwithin [xx] months of campaign


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Case Study: Execution


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Case Study: Execution


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Richard Kohn & BDNInternational

Richard Kohn:

The MArchitect, key note speaker, marketing resultant

20 years + in global leadership roles across multiple

categories and industries Designing & building beautiful, leading brands

Brand Development Network International

Leading global marketing training & consulting practice Specialist in tailored Live Action Learning programs

The Leading Brands secret weapon


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Contact

Richard Kohn

Email: [email protected]

Blog: The Marchitect

Tel: +31624487867

BDNI contact details

[email protected]: BDN International
mailto:[email protected]:[email protected]:[email protected]:[email protected]

marketing by objectives spx seminar

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