MARKETING PLAN

1. Term of reference: company, brand, market Supply chain assets (distribution network and 7. Strategic options/direction
(segment, geography, industry sector) relationships, distribution control, distribution Existing Product New Product
2. Business mission: provide employees and uniqueness, security of supply, supplier network and Existing Market Product/Service
stakeholders with clarity about what the organization is relationships) Market penetration or development
fundamentally there to do Internal, support Assets (cost advantages, it systems, expansion
3. External marketing audit technical skills, production expertise, people, copyrights New Market Market Diversification
PEST/PESTEL for “Macro” environment (political/legal, and patents, franchises and licenses, partnerships) development
economic, social/environmental, technological) Alliance-based assets (access to markets & technology)
Porter’s 5 Forces for “Micro” environment (bargaining 5. SWOT (Strengths, weaknesses, opportunities, BCG Matrix High share Low
power of suppliers/buyers, barrier to entry, threat of threats) – Strategy: conversion & matching High growth Stars 50% ? 15%
substitutes/new entrants) TOWS (SO, WO, ST, WT strategies) Low Cash cow 25% Dog 10%
4. Internal marketing audit 6. Marketing objectives (target markets, competitive
C-based assets (relationships with C, company name and targets, competitive advantage, sales/revenue,
8. Marketing tactics – marketing mix
reputation, brands, country of origin, market position, profile, profit) 9. Budget
superiority of products and services) 10. Organization
11. Control
MARKETING MIX → PRICE, PLACE, PROCESSES, PROMOTION, PRODUCT (SERVICE), PRODUCTIVITY, PEOPLE, PHYSICAL EVIDENCE

MARKETING PROCESS
Understand the market place and C needs/wants → Design a C driven marketing strategy → Construct an integrated marketing programme that delivers superior value → Build
profitable relationships and create C delight → Capture value from C to create profits and C equity
Influences on consumer behavior Influences on organizational behavior Service Characteristics Approaches: Breakdown method & build-up
Cultural (Culture, Sub culture, Social class) Environmental (Economy, Supply Intangible, inseparable, lack of method
Social (Reference groups, Family, conditions, Technology, ownership, perishable, variable → behavioral, psychological, profile
Roles/status) Politics/regulation, Competition,
Personal (Age/life-cycle, Occupation, Culture/customs) Perceived service risks Segmentation targeting strategies
Economic situation, Lifestyle, Organizational (Objectives, Policies, Functional, financial, temporal, Undifferentiated (marketing mix > market)
Personality/self) Procedures, Structure, Systems) physical, psychological, social, sensory Differentiated (each mix > each segment)
Psychological (Motivation, Perception, Interpersonal (Authority, Status, How product/service characteristics Concentrated (only one mix)
Learning Empathy, Persuasiveness) affect ease of evaluation: search, External C Satisfaction
Media, Beliefs/attitudes Individual (Age, Income, Education, Job experience, credence Internal C High Low
C purchase journey position, Risk attitudes) Satisfaction High Synergy Internal
Need recognition → Choice criteria & O purchase journey Market segmentation euphoria
Information search → Evaluation of Problem recognition → General To leverage scarce resources Low Coercion Alienation
alternatives → Purchase decision → Post description of need → Product To ensure that elements of the
purchase evaluation specification → Supplier search → marketing mix are designed to meet Marketing metrics
Initiator, Influencer, Decider, Buyer, User Proposal solicitation → Supplier needs of different C groups MARKET SHARE
impact first 4 points selection → Order specification → Allows organizations to focus on Sales revenue (€#)/Total market unit revenue
Consumers balance emotion and Performance review specific C needs, in most efficient and (€#)
information and can pursue three Initiator, Influencer, Decider, Buyer, effective way RELATIVE MARKET SHARE
pathways: Cognitive, emotional & User, Approvers, Gatekeeps impact the Need to be: stable, measurable, Brand’s market share (€#)/Largest competitor’s
habit/repeat journey appropriate, profitable, substantial, market share (€#)
accessible, unique
PRODUCT (SERVICE), PEOPLE, PHYSICAL EVIDENCE
TYPE OF SERVICES
Processing Product substitutes Relationship Customization
People Possessions Own Rent Discrete Continuous Customized level→
Tangible Self- Membership Rail card Insurance Standard High Low
Intangible Mental Information perform Casual Taxi Radio level ↓
stimulus Hire High Hotel Cinema/fastfood
Low Hospital Lecture/football
4 levels of product/service
Core product (basic offering) → expected product (additional benefits normally provided with the core offer facilitating use/enhancing value) → augmented product (additional
benefits –usually services - serving to differentiate from competitors’ offers) → Potential/Intangible Product/Service (brand, image, perception)
Flower of Service
Facilitating supplementary elements Enhancing supplementary elements
Information Order taking Billing Payment Consultation Hospitality Safekeeping Exceptions
To obtain full Order entry, Periodic statements of Self-service, direct to involves a dialogue reflects pleasure at assistance with Supplementary
value from any reservations account activity, Invoices, payee or to probe for C meeting new Cs safekeeping Cs’ services that fall
service, C need or check-ins, verbal statements of intermediary, requirements and and greeting old personal outside the routine
relevant applications amount due, Online or automatic deduction then develop a ones when they possessions of normal service
information machine display from financial deposit tailored solution return delivery
Service environment → physical/virtual Moments of Truth: Defining points in service delivery where Cs interact with employees or
Purpose: equipment
Shape Cs’ experiences and behaviors Critical Incidents: Specific encounters that result in especially satisfying/dissatisfying
Signal quality and position, differentiate and strengthen brand outcomes for either Cs or service employees
Be a core component of the value proposition Role: A set of behavior patterns learned through experience and communication, Roles
Facilitate service encounter and enhance both service quality and productivity frequently well defined, Employees and Cs will view encounters in a similar way when both
share common role expectations
Marketing metrics Script: A sequence of behavior to be followed by employees and Cs during service delivery.
SHARE OF REQUIREMENTS When encounters undertaken frequently, strong, standardized, well-rehearsed scripts are
Brand purchases (units/£)/Total category purchases by brand buyers common
ACQUISITION VS. RETENTION COSTS
Revenue acquisition cost (€) = Acquisition spending (€)/Number of C acquired
Revenue retention cost (€) = Retention spending (€)/ Number of C retained
NET PROMOTER SCORE = %promoters - %detractors
PRICE, PLACE, PROCESSES
Price: is the amount of money charged for a Classical pricing strategies 4 strategies to change the focus
product or service; the sum of the values Cost-based /Cost plus, Competition, Everyday low, High–low, Value-added Use the price strategy to clarify your advantage,
that consumers exchange for the benefits of Trend in service pricing Willfully overprice to stimulate curiosity,
having or using the product or service Subscription, Dynamic, Pay as you go, Auctions, Freemium Partition prices to highlight overlooked
Pricing: cost based (inside-out) or valued benefits, Equalize price points to crystallize
based (outside-in) personal relevance
User service cost: Search cost → Purchase & Fairness & ethical concern in pricing Revenue management for capital utilization
service encounter costs → Post purchase Service pricing is complex: Quoted prices used by consumers for price When: High fixed cost structure, Relatively fixed
costs (necessary follow-up, problem solving) comparisons may be only the first of several charges that can be billed, Pricing capacity, Perishable inventory, Variable and
*all include: money (price, operating, is mostly based on usage-related factors, Consumers find it difficult to forecast uncertain demand, Varying C price sensitivity
incidental expenses), time, physical effort, their own usage. → Buckets
psychological burden, sensory burden Piling on the Fees: “Hidden extras”, Adding (or increasing) fines and penalties. Rate fences: charging different C different
Intermediaries: offer manufacturers greater Distribution in service context prices for the same product (physical or non-
efficiency in making goods available to target What flows through the channel? physical)
markets. Through their contacts, experience, How should service reach the C? Categories:
specialization and scale of operations, Where/When should service be delivered? Physical: basic product, amenities, service level,
intermediaries usually offer the producer ↓ Intermediaries others
more than it can achieve on its own ↓ Distributing service internationally Non-physical: consumption & buyer
Disintermediation: occurs when product or ↓ Entering international market characteristics
service producers cut out intermediaries and Channel preferences among service C: Marketing metrics
go directly to final buyers, or when radically Convenience, personal channels for complex and perceived high-risk services, E1 = Own Price Elasticity
new types of channel intermediaries displace impersonal and self-service channels for Individuals with higher confidence and E2 = Competitor Reaction Elasticity
traditional ones knowledge about a service/channel E3 = Cross Elasticity
E1 + (E2*E3) = Residual Elasticity
PROMOTION
Marketing communications is a process through which External role Internal role
organizations and audiences engage with one another. Help C evaluate offerings and highlight differences that Promote contribution of personnel and backstage
Successful positioning: clarity, consistency, credibility, matter operations
competitiveness. Promote contribution of personnel and backstage Encourage employee buy in
Kotler’s Five Ms of Promotion operations Intangibility
Mission → Money → Message/Media → Measurement Facilitate C involvement in production Abstractness, Generality (objective & subjective claim),
Stimulate or dampen demand to match capacity Non-searchability, Mental impalpability
Promotion mix
Website: Encourages registration and repeat visits when Direct marketing: Direct connections with carefully Public relations/sponsorship: Building good relations with
value added targeted individual consumers to both obtain an the company’s various publics by obtaining favorable
Social media: Technologies to create highly interactive immediate response and cultivate lasting C publicity, building up a good corporate image and handling
platforms via which individuals and communities share, co- relationships Issue of permission marketing or heading off unfavorable rumors, stories and events
create, discuss and modify user generated content Personal selling: Personal presentation by the firm’s Sales promotion: Short term incentives to encourage the
Advertising: Any paid form of non-personal communication of sales force for making sales and building C purchase of a product or service
ideas, products or services in prime media relationships Content marketing
Word of mouth Marketing metrics
More credible than organization-initiated communications PROMOTIONAL RETURN
Can have powerful influence on use or avoidance – RISK in services Promotion spending (€)/Revenue (€)
Takes place during, as well as before, the service encounter LIFT
Creating exciting stories Incremental sales/Baseline sales
Member get member promotions
Referral rewards programmes
Testimonials
Opportunities for online reviews

MEASURING SERVICE QUALITY

SERVQUAL scale E-S-QUAL scale Service process design
Reliability: Ability to perform the promised Efficiency: Ability of the C to get to the website, find their most wanted 1. Start strong – create a good first impression
service dependably and accurately product/information and conveniently logout with minimal effort 2. Build an improving trend – build up quality
Responsiveness: Willingness to help C and Availability: Is the site always available? Does it launch immediately? Is 3. Create a peak – create a sensational step
provide prompt service it stable? 4. Get bad experiences over with early – unpleasant
Assurance: Knowledge and courtesy of Fulfillment: Are offerings described truthfully? Are orders delivered as experiences should be dealt with early in the
employees and their ability to inspire trust and promised? experience process, not at the end
confidence Privacy: Is information privacy protected and personal information not 5. Segment pleasure, combine pain – divide
Empathy: Caring and individualized attention shared with pleasurable and unpleasant experiences and
that the firm provides to its C other sites? combine them
Tangibles: Appropriate physical facilities, Responsiveness/Contact: When an off-line response is required does 6. Finish strong – ending on a high note is an
equipment and appearance of personnel one happen? important aspect of every service encounter
Journey map Gap Closing the gap Turnaround system Marketing metrics
1. Identify the process to Knowledge: Management Knowledge: learn what C expect Act fast, resolve during process RETENTION RATE C
be mapped definition of these needs Policy: Establish correct processes wherever possible, admit mistakes, Number of C
2. Identify the C or C group Policy: Translation into and service standards understand the problem, do not argue, retained/Number of C at
3. Map the process from design/delivery specs Delivery: Ensure service empathies, give C benefit of doubt, risk*
the C’s point of view Delivery: Execution of performance meets standards clarify process, inform C, compensate, C PROFITABILITY
4. Map contact employee design/delivery specs Communication: Ensure persevere The differences between
actions: visible & invisible Communication: C interpretation communications promises are the revenue earned from
to the C of communications realistic and understood 3-stage approach to prevent C failure and the costs associated
5. Link C and contact Perception: C perceptions of Perception: Collect information on failure points with the C relationship
person activities to needed service execution Tangibles/communicate delivered Identify root causes during a specific period
support functions Service quality: C experience service Create strategies to prevent failure:
relative to expectations Service (all above) Redesign C involvement

Products are anything that can be offered in a market for attention, acquisition, use or consumption that might satisfy a need or want
Services are economic activities performed by one party to another. Often time-based, these performances bring about desired results to recipients, objects or other assets.