A model for objective setting

We all know that setting objectives is the first step in developing a marketing plan. Unless you know where you are going, it really doesn’t matter how you get there.

But, how do you know where to start with setting your marketing objectives?

One useful tool to use in diagnosing your marketing problems and setting your marketing objectives is the marketing effects funnel.

The basic premise of this model is that customers move from some state of unawareness to one of purchasing your product and ultimately becoming loyal advocates.

In some impulse products people move through this funnel very quickly (a good model for low involvement products is AIDA – attention, interest, desire, action) and other times, usually with more expensive or complex products, it takes a long time (think: purchasing education or a car). But, in all cases it’s a logical flow. It’s impossible for somebody to purchase your product without first being aware of it (even in an impulse buy).

So typical marketing objectives should follow the funnel.

But, before you jump into setting objectives with the funnel tool you need to ensure your objectives follow the SMART model:

Specific – Use the model to be specific about which problem you are trying to solve
Measurable – Your objective must be measurable. Every one of the levels on the funnel can be measured.
Achievable – Can you do something about your problems? Yes, you can.
Realistic – Do you have the resources necessary? What would it take?
Time-Bound – Sometime in the future doesn’t work. Set a deadline.

With that out of the way, let’s move on to setting objectives using this model.

Before you get started you need to understand your market. You need to understand who you want to target and where they are in the funnel model.  To do this you will likely need to survey your audience. I won’t get into the details of the surveying methods – you’re likely going to need help from a professional surveying supplier. But, let’s assume you have this information.

The situation: You just launched a new product (product x) and only 20% of your market (Canadians between 15-30) has even heard of your company or your product. Out of that 10% of your market know the benefits of your product, and less than 0.5% have purchase, and liked your product enough to repurchase.

Your objectives might look like this:

Objective One:

Increase awareness of product x from 20% to 40% with 15-30 year old Canadians during 2010-11.

Objective Two:

Education your market about the 3 primary benefits of product x. By the end of 2010-11 20% of your market will be able to cite at least two benefits.

Objective Three:

Increase trial of your product from 0.5% to 10

% within 2010-11.

Once you have the objectives set…it’s time to build the plan. What would you need to do to make all of this happen?