LESSON – 5 &6
MARKETING PLANS FOR SERVICES
Marketing Plan
Plan is the result of your planning process. It is the blue print of your
all detailed activities which u intend to perform to obtain objectives.
Marketing plan is a formal document that details your objectives,
your situation analysis, your marketing strategy and the elements of
your marketing mix.
Developing a marketing takes time, money and energy but it is
worth the efforts:-
Highlight important problems and opportunities
Focus resources on the right tasks
Establish targets against which u measure performance
Makes marketing more efficient
Coordinates everyone’s efforts and integrate all of their marketing activities.
Marketing plan answers three questions:-
Where are u now?
Where do u want to be in the future?
How are u going to get there?
Strategic Gap Analysis
T3
Desired Outcome
N
e
w
s
t
r
Performance Gap
a
t
e
g
y
Past Strategy
Existing S Expected Outcome
T1 trategy
T2
•The gap must be perceived significant
•The decision maker must be motivated to reduce the gap
•The decision maker must believe that the Gap can be filled .
The Marketing Planning Process
Ph-1 Strategic context
1. Mission
2.Corporate objectives
Ph 2- Situation review 3.Marketing audit
4.SWOT analysis
5.Key assumptions
Ph 3- marketing strategy formulation 6.Marketing objectives and strategies
7. Estimate expected results
8. Identify alternative mixes
Ph 4- resource allocation and monitoring 9.Marketing programs
10.Monitoring, control and review
CORPORATE OBJECTIVES
Market standing
Innovation
Productivity of employees
Physical and financial resources
Profitability
Manager performance & development
Worker performance & attitude
Public responsibility
SPECIFIC AREAS OBJECTIVES
PROFITS
GROWTH
FUNDS ATTRACTED
MARKET SHARE
SHAREHOLDER VALUE
SERVICES MIX
PRODUCTIVITY
IMAGE
OPERATIONS
DIVERSIFICATION
MANAGEMENT DEVELOPMENT
STAFF LEVELS
TECHNOLOGY
RELATIONSHIP MARKETS
Marketing Plans For Services
Environmental analysis Competitive analysis
•.political •Major competitors
•.Economic •Their goals and objective
•.social •Market place behavior
•.Technological •Market share
•.Financial •Growth
•.Legal •Service quality
•.Regulatory •Positioning
•.Religious •Operations and resources
•.Global •Marketing mix and strategies
Marketing
Audit
Market analysis Company analysis
•Our goals and objectives
•Size •Market share
•Growth •Growth
•Customer segments •Service quality
•Customer needs •Positioning
•Buyer behavior •Operations and resources
•intermediaries •Marketing mix strategies
Lifecycle of a Product a Service
Sales
Profits
Revenues
and
profits Introduction Growth Maturity Decline
Time
Star
Question Mark
Market Growth Rate
High
10%
Cash Cow Dog
Low
10x High 1x Low 0.1x
Market Share Dominance
ILLUSTRATIVE PORTFOLIO MATRIX FOR A RETAILER
Star Question mark
High Red Rooster
Country Road
Target
Market
Discount stores
Growth
rate Department
stores
Scan Remo
Low Target
supermarkets
Cash cow Dog
10X High 1.0x Low 0.1x
Relative Market Share
GE
GEMATRIX
MATRIX BUSINESS STREGTH
Fixed Deposit
Buildings Consumer
Long term
Leasing
Industry
Auto
Business Strength
High
Market Attractiveness
Medium
Weak
Strong Medium Weak
Business Position or strength
MARKETING OBJECTIVES AND MARKETING STRATEGIES
Marketing Objectives
Services/Products
Current New
Current
Market penetration Service development
Market development Diversification
New
Determining revenue, profit and market share
Targets in four categories above
Marketing Strategies
Product
Promotion Price
Customer
service
Place People
Processes
Present Product New Product
Market Product
Penetration Development
Present Market Increase usage New product c
rate or users category
Market Diversification
Development
New Market Develop an entirely
Enter new geographical
market or new product for an
market segment entirely new market
Types of Strategies
Market
Penetration
Intensive Market
Strategies Development
Product
Service
Development
Intensive Strategies
Intensive Efforts --
Improve competitive position with
existing products
Market Penetration Strategies
Increased Market Share --
Present products/services
Present markets
Greater marketing efforts
Market Penetration Strategies
Guidelines --
Current markets not saturated
Usage rate of present customers can be increased
significantly
Shares of competitors declining; industry sales
increasing
Increased economies of scale provide major
competitive advantage
Market Development
Strategies
New Markets --
Present products/services to new
geographic areas
Market Development
Strategies
Guidelines --
New channels of distribution – reliable, inexpensive,
good quality
Firm is successful at what it does
Untapped/unsaturated markets
Excess production capacity
Basic industry rapidly becoming global
Service Development
Strategies
Increased Sales --
Improving present products/services
Developing new products/services
Service Development
Strategies
Guidelines --
Products in maturity stage of life cycle
Industry characterized by rapid technological
development
Competitors offer better-quality products @
comparable prices
Compete in high-growth industry
Strong R&D capabilities
Types of Strategies
Related
Diversification
Diversification
Strategies
Unrelated
Diversification
Diversification
Related – When their value chains posses
competitively valuable cross-business strategic fits
Unrelated – When their value chains are so dissimilar
that no competitively valuable cross-business
relationships exist
Related Diversification Preferred
To Capitalize on:
Transferring competitively valuable expertise
Combining the related activities of separate
businesses into a single operation to lower costs
Exploiting common use of a well-known brand name
Cross-business collaboration to create competitively
valuable resource strengths and capabilities
Diversification Strategies
Less Popular --
More difficult to manage diverse
business activities
However --
The greatest risk of being in a single
industry is having all your eggs in one
basket
Related Diversification May be Effective When:
An organization competes in a no-growth or a slow
growth industry
Adding new, but related, products would significantly
enhance the sales of current products
New, but related products could be offered at highly
competitive prices
Related Diversification May be Effective When:
New, but related, products have seasonal sales levels
that counterbalance an organization’s existing peaks
and valleys
An organization’s products are currently in the
declining stage of the product’s life cycle
An organization has a strong management team
Conglomerate Diversification
Strategies
Guidelines --
1. Declining annual sales & profits
2. Capital & managerial ability to compete in new
industry
3. Financial synergy between acquired and acquiring
firms
4. Current markets for present products - saturated
Unrelated Diversification
Favors capitalizing on a portfolio of businesses that
are capable of delivering excellent financial
performance
Entails hunting to acquire companies:
Whose assets are undervalued
That are financially distressed
With high growth potential but are short on
investment capital
Unrelated Diversification May be Effective
When:
Revenues derived from an organization’s current
products or services would increase by adding new
unrelated products
An organization competes in a highly competitive or
a no growth industry
An organization’s current distribution channels can
be used to market new products to existing customers
Gap analysis
Revenues
Objective
Performance
gap
Forecast
1 2 3
Time ( Years )
MARKETING EFFORT
Mix C
Budgeted
Revenue (Rs)
Expense level
Mix B
Mix A
Marketing Efforts (Rs.)
Response Functions for three different services Marketing Mixes
