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