● Public responsibility: Objectives can be set for an organisation’s wider
social responsibilities, in particular an effort could be made to be seen
as responsible corporate citizens. They may establish objectives for
contributions to charities, community action, urban renewal or other
forms of public and political activity.
There are dangers for organisations that see objectives in one of these areas as
overriding. Komatsu concentrated so much on competitive positioning object-
ives that its main concern became its position relative to its main competitor,
Caterpillar. As a result Komatsu ignored emerging areas where there were
opportunities for growth. This began to lead to a decline in the organisation’s
profitability until corrective action was taken (Pearce and Robinson, 1997).■ Hierarchy of objectives
Objectives are not only developed across a range of key areas they also
exist at a number of levels within an organisation. Objectives cascade
down through an organisational structure effectively forming a hierarchy.
The fictitious Edinburgh Hotel is given as a useful example to illustrate
this hierarchy of objectives (see Figure 7.3).142 Strategic Marketing: Planning and ControlFigure 7.3
The Edinburgh Hotel’s hierarchy of objectives (Source: Adapted from Revuelta, 1996)
Objectives StrategyCorporate (over 3 years) •Increase gross operating •By becoming market leading
profit by 30 per cent luxury hotel in Edinburgh
with 25 per cent share
Marketing (over 3 years) •Achieve 25 per cent share of •By providing best facilities for
Edinburgh luxury hotel market key market segments- By providing best standards
of service - Promote it
Marketing mix (1–3 years)
Product •Provide best facilities for •Build more informal restaurant
key market segments •Refurbish hotel to higher standard - Add fitness club
- Improve bus facilities
Service •Provide best service standards •Retrain staff, etc.
Promotion •Create awareness of improved •Promote new restaurant
facilities,service, etc. •‘Relaunch’ hotel