Establishing Market Objectives

Establishing Market Objectives

  • A business should establish realistic and measurable objectives so they can plan activities and operations that aim to guide them to achieve these goals.
  • Businesses generally adopt a SMART approach to setting objectives:
  • S: specific (clear, precise and relate to specific elements of the business)
  • M: measurable (developing controls to measure extent to which its been achieved)
  • A: achievable (needs to have financial & HR resources necessary)
  • R: realistic
  • T: timed (establish a time frame for it to be achieved)

Examples:

  • Increase market share: selling more of a product in an existing market by encouraging an increase in demand; reducing production prices; improving product quality.
  • Expand existing markets: selling existing goods and services to new customers by opening in another location or diversifying advertising.
  • Expanding the product range: product mix. Tastes change over time and the total range of products offered by a business must change too.
  • New markets i.e. diversification: moving into an entirely new line of business and new products targeted at new customers.
  • Maximising customer service: responding to customer needs. Service, training of staff to meet needs of customer, keeping data on customer buying pattern.

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.