Company goals: how to set them?
Any school of marketing will tell you that clearly defined company goals are the basis for its sustainable growth. This is true, provided that the assumptions coincide with reality. Therefore, in this article, we will provide advice on how to precisely set company goals.
What are the company’s goals?
The company’s goals are top-down business results resulting from the implementation of future projects.
Therefore, these are the beneficial effects that the company obtains by taking the assumed (usually long-term) actions. For example, the company’s goal may be to increase sales, positioning a website or building a brand image.
What are the company goals for?
They are important for many reasons. Planning marketing activities allows you to precisely designate activities that will serve to achieve business benefits while maintaining minimal investment expenditures. This, in turn, allows you to achieve the desired results at the lowest possible cost, which saves time, work and money.
Corporate goals answer not only the simple question “WHAT do I want to achieve?” but also “HOW do I want to achieve it?” – and this is a big difference in planning the details of your marketing strategy.
Let’s move on to how to properly construct company goals.
How to set company goals?
This part is the simplest, because the answer suggests itself by observing and taking into account the dysfunctions that need to be removed in order to increase the efficiency of the company.
If the company receives a small number of inquiries, it is a natural move to improve the visibility of the offer in order to reach potential customers.
It seems fabulously simple, but we encounter difficulties only when asking: “HOW to achieve the assumed goal?”. When trying to answer, a number of variable factors that will shape the final undertakings should be taken into account.
In the simplest division, both the company’s internal capabilities and external market requirements should be taken into account. The former include, among others: the investment budget, and the latter – the activities of the competition or the specificity of the industry.
What can the company’s goals be?
In fact, any business benefit can be targeted. The most common company marketing goals include:
- increase in revenues/sales/profits,
- building an expert image,
- reduction of production costs,
- reaching more people with the offer,
- conversion improvement,
- brand recognition.
It is worth noting that the general goals are pursued by several smaller ones. For example, effective sales are not possible if the company does not take care of a solid image or an attractive offer. For this reason, specifying the goals (and the conditions for their implementation) is much more complex than making vague visions like “I want to earn twice as much.” So let’s discuss how the development of such a concept looks like in practice.
Company goals – examples
We will present two schemes that will make you realize that you can approach the definition and implementation of company goals in different ways – depending on the specific situation.
Example 1: e-commerce industry
The owner of an online store wants to make better use of website traffic to improve the effectiveness of his offer. To this end, it intends to increase the level of conversion by more effectively encouraging recipients to complete their purchases. There are several solutions to choose from, such as:
- new store layout,
- simplification of the category structure,
- refreshing product descriptions,
- website speed up,
- posting higher quality photos,
- creating discounts and rebate codes.
In this case, the company’s goal is clearly defined, and the way to it leads through many paths. It is not difficult to guess that choosing the best one depends on many factors, which is why it is so important to choose the means to the goal in relation to your own situation.
For example, the owner of the store may choose a new graphic design if he has not updated the website in this respect for several years. However, if he took care of it a year ago, but did not refresh the sales content then, he should direct his attention to new product descriptions etc. In other words, a lot depends on the current condition of the online store, because marketing activities should primarily eliminate its weak links.
Example 2: hydraulic industry
Michael is a local plumber who would like to increase the number of repair visits to increase his earnings. His company goal is therefore to increase the number of customers – what solutions does he have at his disposal? The simplest is to walk around the houses and destroy the taps, and then repair them (sorry, but the joke was asking for itself here :)).
Returning to serious considerations, Michael made the right assumption that people are looking for such services in specific situations (plumbing failures and installations). Potential customers are therefore a fraction of society that is constantly changing. This means that the profile of recipients is undefined, which means that open advertising will not precisely reach people expressing a real need for such services.
Thus, Michael excludes solutions such as leaflets, advertising banners and other forms of outbound marketing. Instead, he is considering some method to make his services easier to find if they are needed. You can choose from, among others:
- paid Google Ads ads,
- the positioning of the page,
- NAP business cards,
- advertisements on portals for professionals.
Let’s look at some examples of possibilities resulting from such solutions. By choosing Google Ads, Mike can see his page whenever someone types “Plumber + [name of his city]”. It can also use copywriting services and publish an article entitled “How to fix a leaky faucet”. If it ranks high in the search engine, any person who potentially has problems with the faucet will find his website after entering this key phrase (what’s more, he won’t spend a penny on it!).
To sum up, due to the specificity of his offer, Michał uses the potential of inbound marketing, effectively advertising to people expressing a need for plumbing services. Thus, it implements the company’s goal, which is to increase the number of customers.
- In short, the company’s goals are future business benefits resulting from the implementation of planned activities.
- These include, among others, increasing sales, building brand recognition or reducing fixed costs.
- The modern market makes it possible to define many goals and the means needed to achieve them. The right decisions depend strictly on the individual situation of each company.
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