2. How to set objectives What is an objective? Describe it in 5 specific criteria rather than synonyms such as “mission” or “vision.” When done, see the next slide for a list based on research findings. How does your list compare? Adapted from AdPrin.com
3. Setting objectives: Evidence-based approach Objectives should be -- relevant -- comprehensive explicit measurable (how much and by when) challenging yet achievable Such objectives increase motivation and improve performance, as shown by studies involving over 100 different tasks with over 40,000 participants in eight countries using laboratory and field experiments (Locke & Latham 2002). 3
4. Do companies articulate their objectives? 68 entries in the print-ad Gold Key Awards were asked to include a statement of objectives. None specified the amount of change or the time period(Hartley & Patti 1988). Of the 29 winners of EFFIES (for “effectiveness”) only 17% of the 167 objectives were measurable (Moriarty 1996). 4
5. Are you satisfied with the objectives stated by Levi Strauss for its 501 jeans ad campaign? 1. Maintain and increase brand share, 2. maintain the 501’s price premium, 3. introduce and establish the Pan-American advertising support in Spain, and 4. achieve the above using TV advertising. See the next page for our answers 5
6. Adapted from AdPrin.com 1. Maintain and increase brand share, 2. maintain the 501’s price premium, 3. introduce and establish the Pan-American advertising support in Spain, and 4. achieve the above using TV advertising. #1 is not relevant. #2, #3 and #4 are strategies, not objectives.
7. Relevant objectives Focus on the ultimate objectives Do not confuse strategies with objectives • To come up with an objective, ask “why?” until the answer is obvious, such as “why increase profits?” (Persuasive Advertising p 15) • To come up with a strategy, ask “how?” 7
10. “What do you believe would be the effects on long-term profitability if a firm has as its primary goal to achieve higher market share?” Survey of 99 marketing faculty: HIGHER 57% UNDECIDED 16% LOWER 27% 9 To learn more, see AdPrin.com
11. Based on this exercise, write a small application step for yourself, and set a deadline, preferably within one week. If you are working with someone else, share your application plan and the results of your application. For example, make a relevant, comprehensive, explicit, challenging, achievable, and measurable objective (with a time deadline) for the work you are doing. Adapted from AdPrin.com
