group 5

Marketing Objectives

Johnson & Johnson has three SMART and short-term marketing objectives that will help the company conquer its new international market and acquire considerable revenue. The company's SMART marketing objectives can be examined as both the managerial and financials. The company's first SMART and short-term marketing objective is to increase awareness for its diabetes devices in the Chinese market by 50% at the end of the first year of operation in China. The company's management will assess the entire sales of its diabetes devices, business transactions, and expenditure records during this one year to measure improvement (Glowik, 2017, pp. 50). The sales assessment will ensure that the company's business experiences growth as projected by the management.

Consequently, based on the managerial objective, Johnson & Johnson will increase its inventory management during the first year of operation in China. This is intended to take place through the performance of regular stocktaking and analysis of marketing trends. 

Finally, the last SMART and short-term marketing objective for the Johnson & Johnson company would be to increase the company's social media impressions among the customers of the new international market by 50% at the end of the quarter. These SMART objectives will help the company earn more competitive advantages in the Chinese market, conquer the market, and beat its competitors. In summary, the above mentioned three SMART marketing objectives that would help the company to achieve its mission, vision, and goals could be summarized as:

· Increase awareness for its diabetes devices in the Chinese market by 50% at the end of the first year of operation in China

· Increase its inventory management during the first year of operation in China

· Increase the company's social media impressions among the customers of the new international market by 50% at the end of the quarte increase awareness for its diabetes devices in the Chinese market by 50% at the end of the first year of operation in China. Selected Country-Market- China

Table Comparing the Marketing Plan Outlines

Market penetration plan	Market development plan	Product development plan
· It is usually used when an organization aims to sell its products to existing customers. For example, Johnson & Johnson only sells its diabetes equipment to existing Chinese customers (Gartenstein, 2019). · Regarding the outline of this marketing plan, the organization uses its marketing efforts to increase the loyalty of existing customers. · Maximized customer loyalty aims also at enhancing the frequency of product use, as well as wooing nonusers to make purchases.	· The plan encompasses efforts made by marketing teams to increase sales in new markets. · The aim of this marketing plan outline is to work with the existing products to enter new geographic regions. · Some of the key marketing activities that marketer who uses this outline engage in include increasing the awareness of the products and adopting effective distribution channels. · Organizations that adopt the market development program may need to modify their products slightly to meet the needs of customers in the local market.	· The product development plan requires the development of new products to be sold to existing customers. · Organizations that choose to use this marketing plan outline must strive to capitalize on their relationships with existing target customers. · Leveraging a relationship with the local customers is critical because it is what makes the organization learn of the customers’ taste and preference (Gartenstein, 2019). · One of the main activities that marketers should carry out is research and development.

Contrasting the strengths and weaknesses of each plan

Market penetration plan

Advantages

· Fast and smooth dissemination is one of the advantages of the market penetration plan because the company focuses on existing customers.

· It discourages competition because the organization focuses on building customer loyalty through deliberate marketing activities (Chernev, 2020).

· This strategy reduces risk because the company focuses on existing customers and products.

Disadvantages

· When organizations lower the prices of their products or services to gain customer loyalty, there is a risk of price wars.

· This strategy is characterized by a low-margin market, because a large amount of money is used to increase customer loyalty.

Market development plan

Advantages

· Creating a competitive advantage is one of the advantages of adopting the market development plan outline. This event is possible because the marketers concentrate their efforts in selling existing products, for example, the diabetes devices in new markets.

· Second, the cost of modifying the product to meet the specifications of the local market is the lowest (Gartenstein, 2019).

Disadvantages

· It takes a long time for the company to get any return on investment because it takes a lot of time to build an understanding of the product and the challenges associated with distribution. This event is because the outline is applicable for companies that are venturing into new markets. For example, once it enters the Chinese market, Johnson & Johnson will take a long time to achieve meaningful returns.

· Companies also need a lot of money to use this outline, because research must be conducted on customers in new markets (Chernev, 2020).

Product development plan

Advantages

· Provision of opportunities is one of the strengths of this outline. If Johnson & Johnson chooses this strategy, it will develop new products and sell to its existing customer base. Therefore, companies like to attract and retain talent to continue to launch new products.

· It is possible to keep up with the pace of technology to support innovativeness.

Disadvantages

· Involves huge risks since it involves development of new products and services. The uncertainty that accompanies new product launches now increases risk.

· This is cost-intensive, because developing new products requires a lot of awareness. (Gartenstein, 2019).

The Best Marketing Plan

The best marketing plan, which will help in accomplishing the marketing objectives is the Market penetration plan. This form of marketing strategy entails undertaking the necessary measures to establish a successful presence in the foreign market, gain a greater market share, gain a significant percentage of the competitors' customers, and achieve high sales volume. The market penetration plan focuses mostly on already existing customers. Therefore, it indicates already the company know about the needs, tastes, and preferences of the market, thus making it possible to design the products in the most appropriate ways possible, which will offer optimal satisfaction to the customers. A market penetration plan reduces the risks of market entry failure, considering the fact that the focus is on the already existing market and customers. Knowledge about the market and its customers forms the basis of effective formulation of business strategies, which guarantee high success rates (Gartenstein, 2019).  

The plan is also ideal in reducing the competitive pressures in the market. To gain significant market share, companies using this strategy mainly focus on enhancing the quality of their products while keeping the prices low when compared to those of the market rivals. Naturally, customers are known to like high quality but lowly priced products, as that is where they derive optimal utility. Through such an approach, the company will be in a better position of winning customers from their competitors, besides creating customer loyalty (Chernev, 2020). However, the strategy of low pricing may not be ideal, as it can easily result to price wars among the competing companies. The price wars may lead to a low-margin market, as the companies compete on acquiring customers' loyalty. As a result, the strategy may result to low returns and profitability levels. However, in regards to the company's objectives, it remains to be the most appropriate marketing plan, based on the rationale given below. 

The rationale for Why this Marketing Plan is Better

Johnson &Johnson is an American based company and is targeted a new Chinese market with clearly defined objectives. The plan is ideal when entering a new market, where the company has adequate information. Johnson & Johnson knows that Chinese Customers need diabetes equipment, which gives the company an upper hand in this case. The objectives are expected to be achieved within this first year of operations within the Chinese market, and that renders the other plans, market development and product development irrelevant, as they consume a lot of time before the desired marketing goals and objectives can be realized. Through the use of the Market penetration plan, Johnson &Johnson will be able to increase awareness in the Chinese market by 50%, increase inventory management and the company's social media impressions within the first year of operations. The business objectives are time-framed, and therefore, the adopted plan should have the potential of meeting the desired time (Gartenstein, 2019).

Besides, the Market penetration plan presents minimal risks of market entry failure, and therefore, there is guaranteed success within the Chinese market. The information that Johnson &Johnson have about the customers, the market, and their diabetes equipment, will be ideal for appropriate decision making and planning necessary for establishing successful market entry. A product development plan may not be ideal as it presents a high risk of product failure. On the other hand, the market development plan presents the risk of market failure (Gartenstein, 2019). Johnson &Johnson should settle on the most appropriate market entry plan which meets its marketing objectives successfully and satisfactorily (Glowik, 2017), and that is the Market penetration plan.

References

Boccardi, V., Murasecco, I., & Mecocci, P. (2019). Diabetes drugs in the fight against Alzheimer's disease. Ageing research reviews, 54, 100936.

Johnson & Johnson. (2021). Website. Accessed on 17th June, 2021 from https://www.jnj.com/

Boccardi, V., Murasecco, I., & Mecocci, P. (2019). Diabetes drugs in the fight against Alzheimers disease. Ageing Research Reviews, 54, 100936. doi:10.1016/j.arr.2019.100936

Deaza, J. A., Díaz, N. F., Castiblanco, S. E., & Barbosa, M. I. (2020). International market selection models: A literature review. Tendencias, 21(2), 191-217. doi:10.22267/rtend.202102.147

Johnson & Johnson. (n.d.). Retrieved June 19, 2021, from https://www.jnj.com/

Sakarya, S., Eckman, M., & Hyllegard, K. H. (2007). Market selection for international expansion. International Marketing Review, 24(2), 208-238. doi:10.1108/02651330710741820

Kim, K., Lee, S. H., & Gokalp, O. N. (2019, July). Competition effect and spillover effect among competitors from the same country in foreign markets. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 16264). Briarcliff Manor, NY 10510: Academy of Management.

Ogurtsova, K., da Rocha Fernandes, J. D., Huang, Y., Linnenkamp, U., Guariguata, L., Cho, N. H., ... & Makaroff, L. E. (2017). IDF Diabetes Atlas: Global estimates for the prevalence of diabetes for 2015 and 2040. Diabetes research and clinical practice, 128, 40-50.

Sheng, J., & Lu, Q. (2020). The influence of information communication technology on farmers’ sales channels in environmentally affected areas of China. Environmental Science and Pollution Research, 27(34), 42513-42529.

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Glowik, M. 2017. 4.7 Case study: Starbucks. Global Strategy in the Service Industries: Dynamics, Analysis, Growth, 156.

Chernev, A. (2020). The marketing plan handbook. United States: Cerebellum Press.

Gartenstein, D. (2019, March 29). Advantages and Disadvantages of Market and Product Development Strategies. Retrieved July 4, 2021, from https://smallbusiness.chron.com/advantages-disadvantages-market-product-development-strategies-20206.html

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Group Project #4

MKTG 660-2102

Charles Gwaltney, Rodrikus Dunn, Vianna Jaramillo, Sunshine Shelton

2021