Marketing Plan for MoTecH Ltd - Research Proposal Example

Marketing - MoTecH Ltd 1. Introduction In order to develop an effective marketing strategy, a series of issues need to be appropriately addressed making sure that all available resources are going to be engaged in the relevant plan. When marketers have to deal with the promotion of a specific product/ service they use to examine primarily the similar strategies/ initiatives of competitors; however, often the choices of competitors are developed under different internal and external organizational conditions (position of the firm in the market, cash potentials, support from its stakeholders/ the state and so on). The identification and the evaluation of the effectiveness of marketing strategies have to be based on specific rules. In this context, it is noticed by Cherney (2000) that ‘marketing planning includes understanding the role of marketing in the business, an indepth understanding of customers and competitors, and the development of a competitive advantage’ (Cherney, 2000, 51). In accordance with the above study, three are the main priorities for marketers in the modern market: a) to identify the relationship between marketing and a specific organization, b) to identify the role of customers and competitors in the organization and c) to appropriately use the above information in order to develop a marketing plan that will offer to the firm a competitive advantage towards its rivals. Current paper focuses on the identification of the marketing plans required for the promotion of a specific product: the mobile phone, ‘Leviathan’. The firm under discussion, MoTecH Ltd, is a firm that has recently entered the market and tries to develop its customer base; the promotion of the specific product is an important part of the firm’s strategy; the product is unique – in terms of its features – and is expected to be quite successful – referring to its sales within the specific market. For the moment the firm is interested in increasing its sales but also to advertise its products in the market; Leviathan will be a test for the firm’s managers. The sales of the specific product – after the necessary promotion in the market will reflect the ability of the firm’s leaders to set the appropriate strategic priorities. After applying a series of marketing initiatives, the performance of the product in the specific (British) market is expected to reach significant levels; the fact that well known brand names already exist in the British market should not be considered as a constraint to the promotion of the product in the specific market. However, the promotion of the product has to be based on specific criteria/ principles; specific methodologies are also going to be used making sure that the product reflects the organizational culture but it can also respond to the needs of consumers as they have been identified and evaluated through appropriate market research. 2. Segmentation of customers/ market One of the first steps of the new product’s marketing plan has to be the accurate segmentation of customers/ market. The above task will be performed by identifying the customers targeted by the specific product, observe their responses to similar products and locate the marketing techniques that would be most effective for each particular customer – as member of a category as set through the customers’ segmentation. The importance of customer segmentation for the development of a successful marketing plan – not only in relation with the specific product – is high. The above issue is highlighted in the study of Sheth et al. (2000) where it is noticed that the structure and the needs of modern market has led to the development of specific marketing schemes, like the customer-centric marketing which has a series of significant effects on the structure of modern marketing which is characterized by the ‘increased importance of marketing as a "supply management" function, customer outsourcing, cocreation marketing, fixed-cost marketing, and customer-centric organizations’ (Sheth et al., 2000, 55). In the case under examination the customer segmentation is necessary since the particular product can have lead consumers to different responses in accordance with a series of criteria: for example young people are more likely to buy this product than the elderly. Under these terms, the customer segmentation for the needs of the particular marketing plan (related with the promotion of the specific product in the British market) should be based on the following criteria: a) age, b) educational characteristics, c) gender and d) interests. On the other hand, the local market should be also segmented using the following criteria: a) urban – rural characteristics, b) level of life of local population – people with high income will be more capable of buying the specific product – lack of necessary funds for everyday living would prevent customers from buying gadgets of advanced technology and c) level of activity of competitors in the same area – the direct confrontation with rivals would be avoided. 3. Promotion of the phone to the market When having to promote a product/ service, marketers should take into consideration a series of issues, like the current market conditions, the cost involved, the payback period and the resources required. On the other hand, the ethical aspects of the marketing plan chosen should be also carefully examined. The above issues have been examined by Redmond (2005) who noticed that ‘if society’s wishes were speedily and thoroughly carried out by marketers, certain marketing practices would have been sharply reduced, if not eliminated, by now; practices such as telemarketing and e-mail spam are obvious examples’ (Redmond, 2005, 12). There are also other marketing schemes – like the use of mail in order to inform on a firm’s new products – that are not welcomed by the consumers who seem to accept a specific method of marketing – this developed through the media and the press. The fact that media and press do not address each one of the consumers individually may be a disadvantage but it can also be characterized as advantage if taking into consideration the fact that most consumers worldwide do not wish to be under the stress of a continuous and bothering marketing plan – mails, phones and letters are often regarded as entering a person’s personal life; for this reason they are not likely to have particularly effects on the promotion of products – more precisely, their effectiveness has been reduced after the initial period of their appearance when they were more likely to influence a significant number of people to buy a particular product/ service. The fact that many marketing practices are in opposition with the ethics or the culture held in a particular society has not influenced the development of marketing plans by marketers – using innovation and technology – in an effort to expand existing customer base. An indicative example of the above trend is the use of experiential marketing techniques which are based on the use of strategic tools like the ‘databases, consumer websites and‘viral marketing’campaigns’ (Moor, 2003, 39). Other strategic marketing plans can be chosen by marketers using specific criteria, like the customers targeted, the funds and the resources available but also the strategic position of competitors; the existence of brand names related with the specific technology should be taken into consideration when deciding on the marketing strategy used for the promotion of the specific product. 4. Differentiation from competitors As noticed above, the activities of competitors in the particular sector should be taken into consideration when developing the specific marketing strategy. The role of competitors in the development of the product’s marketing plan is quite important showing the responses of consumers to the products with similar characteristics. On the other hand, when the product under promotion has exceptional features – like the firm’s newly introduced mobile phone – then the relevant schemes of competitors are not expected to highly influence the marketing of the specific product. A key element that is expected to differentiate the product from the products offered from competitors is the range of consumers targeted; despite the common mobile phones current product is expected to attract the interest of a significant number of consumers, not only because of its features but also of its price which is approximately the ½ from the prices of other – similar – products in the British market. The level of the price has been decreased because of the use of local manufacturers – instead of foreign establishments used by a series of mobile phone providers worldwide. Despite the fact that the components/ material of the phone is imported from India, the ‘construction’ of the mobile phone and its overall preparation for selling is made in UK. In this way there are no transport costs; a fact that minimizes the price of the product in shops. On the other hand, the specific product includes a 5 – year guarantee which – again - is a unique offer. The mobile phones available in the market are most likely to have a 1-year guarantee. The above fact proves that the technology of the specific product is of high quality – compared to its competitors. This is another advantage of the specific product towards its competitors that is going to be also highlighted in the plan developed for the promotion of the product in the British market. 5. Identification of the perceptions of customers – gaps in the market As already noticed above, customers are expected to present different responses to the marketing plan used for the product’s promotion. At a first level, the reactions of consumers will be depended on their age – a criterion used previously for the segmentation of customers. However, personal perceptions of consumers will be influenced by the conditions of the market – referring to the period when the entrance of the product will be attempted. In the context of current financial crisis, the responses of consumers to specific products are expected to change; the hierarchy of consumers’ needs has been changed – because of the high level of unemployment – leading to specific market trends. The promotion of products of high technology – like the specific product – faces a series of constraints which can be effectively faced by emphasizing on the price-advantage and the guarantee-advantage that characterize the specific product. A survey has been conducted in London in order to help in the identification of consumers’ perception regarding the entrance of Leviathan in the market. There were no specific criteria in the number/ age/ background of participants; the latter were chosen randomly in their exit from John Lewis – a well know shopping centre. Most of the participants – 45% - consider the time chosen for the product’s promotion in the market as inappropriate; however the 56% of them admits that the product’s features/ price/ quality is going to influence consumers in Britain. The potential offering of the product through the Internet was a proposal that was accepted with enthusiasm from participants – about 52% of them answered positively to the value of the specific scheme; the further reduction of price of the product in this case was probably a reason that led most of the participants – 62%- to agree to the introduction of the specific marketing initiative. On the other hand, there was no clear view of the consumers’ criteria when deciding to buy a product with similar characteristics. Most of the participants – 56% - answered that technology offered would be the criterion that would influence them to buy such a product; however, there was also an important number of consumers – 44% - that considers the conditions of the market as the most crucial element for the performance of these products in the market. 6. Development of relationships with customers The promotion of a product in the market requires the development of an excellent relationship with potential customers. The firm operates in the British market for about 5 years – the introduction of this product is expected to support the firm’s performance which has been decreased the last 6 months under the influence of the global financial crisis. In order to understand the role of customer in the development of marketing plans we should refer to the relevant findings of the literature. In accordance with the study of Ferrell et al. (2004) ‘students believe marketing comprises selling, advertising, and promotion; most of them believe that marketing is a "bad business practice," and nearly one-fourth thought that marketing was a poor career choice’ (Ferrell et al., 2004, 116). The views of students as stated above are important in order to understand the expectations of consumers of the particular age from the products/ services offered in the market. The firm under examination has already a well-developed customer base; however, it doesn’t have an exceptional brand name, like Nokia or Erickson. For this reason, alternatives should be identified in order to attract the interest of customers – the promotion of the product through the Internet would be an important scheme for the achievement of this target. As it is revealed in the study of Ramaseshan et al. (2006) the growth of businesses that operate internationally has been achieved because of the ‘advances in communication and information technologies, privatization and deregulation in emerging economies, and emergence of the global consumer’ (Ramaseshan et al., 2006, 195). The specific firm operates only in the British market; however it could develop its customer base by promoting its products in the Internet; in this way both the new products – like the specific mobile phone – and the existing ones could increase their sales – without having the risk of moving abroad. In accordance with the above the communication of the firm with its customers would be improved through the following policies: a) use of Internet for informing the customers on existing and new products, b) use of newsletters to existing customers and c) arrangement of events on places where the number of potential customers is expected to be high, e.g. in Universities, shopping centres and so on. 7. Loyalty schemes – use for the marketing of the phone Loyalty schemes are those marketing schemes used for attracting but mostly for keeping a customer loyal to a specific firm. Many different views have been developed regarding the effectiveness of these schemes. In accordance with Stone et al. (2004) ‘traditionally, these schemes are evaluated by their financial and marketing effects on acquisition, retention and development (up-sell, cross-sell) of customers and related efficiencies’ (Stone et al., 2004, 305). On the other hand, it is made clear that ‘where sustainable loyalty is the ultimate goal, customer loyalty schemes are of importance only as part of a coherent value proposition’ (O’ Malley, 1998, 47). However, the loyalty schemes adopted by firms worldwide need to follow specific rules: they should not lead to the misunderstanding of the quality/ characteristics of a firm’s products/ services, b) they benefits offered need to be ethical – in accordance with current market’s rules and c) they should offer the customers the chance to exit any time without affecting the relationship between the customer and the particular firm. It is noticed by Wirtz et al. (2007) that ‘perceived switching costs are highly effective in driving share of wallet at low rather than high levels of attitudinal loyalty, and only when combined with an attractive reward program’ (Wirtz et al., 2007, 327). In other words, customers are more likely to be attracted from loyalty schemes that offer to them the option to exit without cost – or even at low cost (Raimondo et al., 2008); flexibility in duration, terms of exit and benefits is highly appreciated by customers. 8. Conclusion - Proposals on loyalty schemes and promotions The development of effective marketing plans can be characterized as a challenging task. Marketers need to balance the interests of all sides and choose the most appropriate solution/ strategy using specific criteria – as indicatively presented above. Even under these terms, the marketing plans developed for the promotion of a specific product/ service can fail to meet the requirements set by the marketers. The reasons can be many: local market conditions may change unexpectedly, the financial problems related with specific category of customers – especially those targeted by the specific marketing plan may be increased, the state can introduce measures that favour specific products – e.g. governmental plans for the financial support of those using gas instead of oil will lead to the increase of the performance of firms that work in the particular sector. In order to face the challenges related with modern market, marketers can propose the introduction of plans that will focus on the increase of loyalty of customers. The use of loyalty schemes in marketing has been proved to have both advantages and disadvantages – see also previous section. The use of appropriate theoretical models – like the Porter five forces model, the SWOT analysis or the PESTEL analysis in advance may offer the necessary framework for the development of effective loyalty schemes. Even in this case, specific issues need to be taken into consideration when addressing consumers in the specific market: a) consumers are difficult to change their customs/ preferences, b) if a product/ service is quite innovative or it has other exceptional characteristics, like the advanced technology (McCasland, 2005), is likely to attract the interest of customers and c) the responses of customers to similar products needs to be taken into consideration in any case. The customer support of a firm needs to be appropriately reviewed - employees need to be informed on the qualities/ characteristics of the promoted product/ service. Finally, the firm’s employees need to be highly motivated in order to support actively the product/ service under promotion. Customers and employees are of high importance for the success of all marketing plans. In any case, the performance of the promoted product/ service has to be monitored and evaluated in the long term – a short term evaluation would be inaccurate presenting only the initial response of the public. References Cherney, A. (2000) Marketing: A Practical Method for Developing Your Growth Plans. Home Health Care Management & Practice, Vol. 12, No. 2, 51-55 Ferrell, L., Gonzalez, G. (2004) Beliefs and Expectations of Principles of Marketing Students. Journal of Marketing Education, Vol. 26, No. 2, 116-122 McCasland, M. (2005) Mobile marketing to millennials. Young consumers: insight and ideas for Responsible Marketers, Vol. 6, Issue 3, 8-13 Moore, E. (2003) Branded Spaces - The scope of ‘new marketing’. Journal of Consumer Culture, Vol. 3, No. 1, 39-60 O’Malley, L. (1998) Can loyalty schemes really build loyalty? Marketing Intelligence & Planning, Vol.16, No. 1, 47-55 Raimondo, M., Miceli, G., Costabile, M. (2008) How Relationship Age Moderates Loyalty Formation. Journal of Service Research, Vol. 11, No. 2, 142-160 Ramaseshan, B., Bejou, D., Jain, S., Mason, C. (2006) Issues and Perspectives in Global Customer Relationship Management. Journal of Service Research, Vol. 9, No. 2, 195-207 Redmond, W. (2005) Intrusive Promotion as Market Failure: How Should Society Impact Marketing? Journal of Macromarketing, Vol. 25, No. 1, 12-21 Sheth, J., Sisodia, R. (2000) The Antecedents and Consequences of Customer-Centric Marketing. Journal of the Academy of Marketing Science, Vol. 28, No. 1, 55-66 Stone, M., Bearman, D., Butscher, S. (2004) The effect of retail customer loyalty schemes — Detailed measurement or transforming marketing? Journal of Targeting, Measurement and Analysis for Marketing (2004) 12, 305–318; Wirtz, J., Mattila, A. (2007) How Effective Are Loyalty Reward Programs in Driving Share of Wallet? Journal of Service Research, Vol. 9, No. 4, 327-334 Read More