Marketing Mix and Invisional Hosting Ltd in Achieving Its Marketing Plan in the Industry - Case Study Example

Letter of Transmittal Mr. /Mrs. Department of University of Address Dear Mr./Mrs.…………………... Enclosed is a copy of “services marketing plan for Invisional web hosting Ltd in Australia.” The report presents a summary of my findings after conducting a thorough audit and a subsequent marketing plan of Invisional web hosting Ltd, a service company in Australia which specializes in offering web hosting services to home users. This audit is an outcome of a market audit conducted earlier in the course of the semester in the same company. The department did indeed approve it and further recommended that I carry out a marketing plan to address issues raised in the first report. The marketing plan draws a lot from the marketing mix and its seven elements popularly known as the 7Ps. As pointed out in the first market audit report, I have provided the relevant information on what need to be done by the company in order to make the proposed marketing plan achievable. The report has an action plan which spell out the activities to be carried out, timelines, cost of each activity and goes on to spell out the implementing agent for specific activities. It also draws a contingency plan to cushion the company in case the plan fails too see light. Should you happen to have any query and/or comments in regard to the interpretation of the report, feel free to reach me through the contacts provided. Thank you for you time. Sincerely Enclosure final Report. Executive Summary Invisional web Hosting Ltd is a service offering company in the IT industry in Australia. 2005 The company vision is the provision of high quality web hosting to internet home users and small and medium enterprises. It has made remarkable progress since its inception the year 2005 by offering low priced services to customers despite the fact that the quality of the services is not altered. However, despite its success in the industry, the company has been facing its own shares of problems in the industry. The first one is the stiff competition from well established big companies in Australia and also foreign companies who have been making inroad into the industry. The company is a small enterpriser inn the industry and may fail to marshal the economic might of its rivals despite its need to gain a competitive edge over such players. The other major challenge is the ever dynamic IT industry in which an innovation may render ones services irrelevant in the industry. The marketing mix will enable the company to formulate a policy that will enhance innovations and inventions in the industry. The report analyses the marketing mix and how they can assist Invisional Hosting Ltd to achieve its marketing plan in the industry. These marketing mix are analyzed in terms of their specific objectives and each is assigns a strategy for its implementation. The report recommends that there should be in place a training policy to enable the company maintains high quality provision of services to the customers. Moreover, the company need to put in place an efficient customer care system as well as identify new target markets to enable it widen its market. The report then draws a work plan for the implementation of the market plan and concludes with a contingency plan in case the entire report fails to achieve the intended objectives. The report recommends for there to be in place an effective contingency plan guided by the real marketing strategy to cushion the company against shocks. TABLE OF CONTENTS Letter of transmittal………………………………………………………………………………………………………………………..1 Title page…………………………………………………………………………………………………………………………………………….2 Executive Summary …………………………………………………………………………………………………………………………….3 Table of Contents………………………………………………………………………………………………………………………………….4 Introduction…………………………………………………………………………………………………………………………………………..5 Services marketing objective……………………………………………………………..……………………………………………….6 Product objective………………………………………………………………………….6 Price………………………………………………………………..…………….………7 Place………………………………………………………….…..………………………7 Promotion…………………………………………………………………………………8 Physical evidence………………………………………………………………..……….8 Process……………………………………………………………………….…………..9 People ……………………………………………………………………….…………..9 Service marketing tactics…………………………………………………………..……….10,11 Market plan work plan…………………………………………………………….……………12 Service market contingency………………………………………………………………….12,13 References ………………………………………………………………………………………14 Bibliography…………………………………………………………………………………….15 List of Figures Table 1……………………………….………………………………………………………….12 Introduction Authorization of the work The writer hereby commissions the work for grading in the department as part of my academic work. The work is also authorized for use by other interested parties such as Invisional Web Hosting Company for implementation to achieve business’ marketing goals. The report is a marketing plan which clearly outlines the measures to be put in place to propel Invisional web Hosting Ltd into greater heights in the web hosting industry. Limitations The report was prepared amidst a number of challenges which may in one or the other affect the results of the report once fully implemented. One of the greatest limitations was the quantification of the cost of implementing the tactics outlined in the work plan. This is because of the rickety world economy which might result into variances one the marketing plan rolls out. Scope of the Report This is a marketing audit report for a service company known as Invision Hosting Ltd. It analyzes the marketing mix of the company, with particular reference to the 7Ps and how they can be achieved effectively. The 7 Ps are clearly outlined, with specific objectives and tactics to achieve them. The report then draws an action plan to achieve the overall market strategy and concludes with a contingency plan. Materials have been retrieved from the company’s profile and other related articles especially those touching on marketing plan and the marketing mix. Marketing Mix Marketing mix is the combination of all the elements which one employs in marketing a company’s products (BusinesDictionary.com, 2011; Mind Teacher, 2011). The 7 elements include; product, price, place, promotion, people, process and physical evidence1. The seven elements of the marketing mix have got sub parts, such as the promotion mix, pricing strategy, distribution channels and the roles of the intermediaries and product innovation development and packaging which help an organization achieve its marketing objectives. The marketing mix put in place by Invisional hosting will help the company provide services in the exact place at the exact price at the specific and convenient time to the customers (Mind Tools, 2011). Services marketing objective for the overall firm The overall objective of the company is the provision of high quality web hosting for the internet home users and small and medium enterprise. This is aimed at increasing the number of customers using web hosting services. The company has so far established itself as a force to reckon in the market, and would like to see an increase in its customer base over the next one year ( Invisional 2011). Stiff competition from its rivals is another challenge to the company, despite the fact that the company would love to maintain a foothold over its existing market. Invisional web hosting Ltd will have the following objectives, To maintain a highly trained and experienced human resource so as to be above the rest in the market. Maximize on the current customers satisfaction as a way of cultivating royalty from them, who in turn will act as promotion agents through the referral system. Services marketing objectives for the 7P’s Products-These are the physical-intangible services offered by the company with aspects such as packaging, trademark, appearance, and guarantee. Product objectives: The company will offer products of high quality that are branded differently to suit the customers’ needs. To invest in research and developments programs so that there is the generation of new services as well as improvising existing ones (Neil, 1965). Price-this is the pricing strategy which puts into consideration the projected profit margins in line with the cost and quality of the products (Medha, 2008). To offer the high quality products at an affordable price to the client. To offer a wide range of web hosting services those are differently packaged at affordable prices. The company will avail diverse payment methods to allow customers to choose the most convenient, thus keeping the company competitiveness in the market. Place- This puts into consideration the distribution channel for the product or services, where to sell and the way of channeling them to the customers, which in this case is the website. To put in place efficient channels of distribution of the web hosting services to the customers to ensure that they have a free flow of services. The firm will put in place relevant logistics to ensure that the market coverage is both inclusive and exclusive so as to reach out to current and potential customers. Promotion-- this involves the aspects of passing on information to potential customers with a view of inducing them to purchase the services (Conklin, 2004). Promotion objectives The company will employ the use of personal selling in order to manage the relationship with customers. The firm will endeavor to utilize sales promotion services such as discounts so as to attract and retain customers. To put in place mechanisms meant to establish and maintain the mutual understanding between the organization and the public2. To design and maintain a highly focused communication in the form of electronic mails to current and potential customers. To maintain an effective channel of communication to keep the market abreast of the services advanced by Invisional web hosting Ltd. Physical evidence- The Company has cultivated and retained a royal customer base that is well versed with the services it offers. Physical evidence objectives: To provide an efficient and customer-friendly service provision system though the website. The company will pursue mechanisms to ensure that a big percentage of its customers have the necessary experience in using the services it provides. Process- These are methods employed by the firm in providing its services aimed at enhancing that they are offered in time, in the right manner to the satisfaction of the customer (Miles 2003). Process objectives: To provide the diversified services through a uniform processes with an aim of achieving consistency in service delivery. The company will provide a fast and efficient system of service delivery to its clients. The company will provide relevant information about its products so that the customers are well informed on their usage. People- this is used to refer to the customers, employees and other stakeholders of Invisional hosting. People objectives: To recruit highly trained personnel in the company who will assist it achieve its objectives. To put in place a comprehensive training program to enhance competitiveness of the personnel. To equip the people concerned within the organization with relevant and enough information about the firm and the services in offer, since the reputation of the brand is in their hands. Service marketing tactics are strategies that the company will employ in pursuit of its goals and the marketing plan in general (Clarence, 2000). These will be looked into in terms of the 7Ps of the marketing mix. The company will produce web hosting services which ;have a flexible pricing, are pocket friendly, with discounts on cash and early payments and ones which are bundled in a way to appeal to customers. The aim of the strategy is to offer high quality services which customers can afford. Invisional web hosting Ltd will put in a place a comprehensive training policy. This will be for its employees so that they are in a position to offer the right services to the customers, thereby, maintaining a high quality service provision. The training policy, which will be administered to newly employed personnel and even the older ones, will have put into consideration the individual training needs. This will be best achieved through both ‘on-the-job training’ and ‘off-the job-training’. Identifying the target market is another tactic that will help Invision all web hosting achieves its marketing plan. This is guided by the marketing opinion that it’s impossible to attract the general public at large hence the need to define the target market(s). This will assist the marketing team to be in a position to determine the where to commit resources, the right methods of promotion and messages to employ, as well as the style of packaging the services. The firm has been targeting low income earners who need to use low cost web. However, there is a need to diversify its client base and target even the other strata of society as well as expand its market even outside Australia. The company recognizes that the physical appearance of the employees and premise of work has an influence on the perspective of customers on the products and services offered. It has therefore; put in place measures to ensure that the company’s website is attractive and easy to use, with an online customer care service that is operational, 24/7. The customer care will be handling issues arising from customers with an aim of giving quick response. Invisional web hosting company has put in place a rigorous marketing strategy to market its brand name as the best web hosting company in Australia. One of the key elements of marketing employed has been the referral system where customers are given appoint bonus on each new customer they refer to the company. The incentive reverberates well with customers who have effectively acted as marketing agents for the company. The company will heighten its marketing through emails where a database of current and potential customers will be used for promotional services via the internet. The channel of distribution for the services offered by Invisional hosting Ltd is remarkably clear, efficient and attractive to customers. The most effective one is the internet which is the main channel of distribution which means that customers are able to get their products online Implementing the market plan timeline- cost of the project and timelines related to the marketing tactics Table 1: Marketing Plan Work plan. Source: Author 2011. No ITEM ACTIVITIES TIME FRAME IMPLEMENTING DEPARTMENT COST 1 Training policy Training programs 3 months Human Resource $ 5,000 2 Identifying target market Market survey 1 month Marketing $5,000 3 Corporate Image Updating the company’s website 1 month Customer care and PR $1000 4 Marketing Sales promotion, referral system, electronic advertising 3 months Marketing $10,000 5 Channels of distribution Updating the company’s website for accommodating new customers and new services 1 month Marketing/Production $1,000 Service marketing contingency In business, there are unforeseen events that may affect the overall market plan for Invisional hosting. This therefore, calls for measures of a plan B in case the entire plan fails. One of the best measures is to have in place a strong and effective monitoring and evaluation team that will monitor the progress of the plan implementation to report any incongruence. The marketing team needs to have formulated an alternative marketing plan to act as a crisis response mechanism in the case Plan A fails to achieve the set objectives. Real life marketing strategy offers solution guidance in times when a marketing plan fails. It revolves around the application of common sense in dealing with issues that arise and which had not been foreseen. The marketing team is encouraged to use intuition and experience in handling such crisis a failure of a marketing plan. This is done using the knowledge gathered on the customers of the company and how they can be reached out to effectively without hurting the goals of the company. Conclusions and Recommendations A marketing mix and the seven elements provide a company with the relevant guidance when formulating an effective marketing plan. The elements should go hand in hand with specific objectives and tactics on how to best implement them. In essence, there is a need to have a contingency plan which will act as a principle guide to the marketing team in cases where the marketing plan fails. A well developed contingency plan has enormous value for the company as it cushions the organization against shocks of failure of a marketing plan (IBIS, 2010). Such a plan will enable Invisonal web hosting Ltd to respond speedily and in a cost effective manner to changes in the macro environment. REFERENCES Business Dictionary, 2011. Marketing Mix. Viewed on 7 October 2011, http://www.businessdictionary.com/.../marketingmix.ht... Clarence Henderson, 2000. The Strategic Marketing Plan. Manila:n.p. Conklin Michael et al. Customers satisfaction Analysis: Identification of Key Drivers. European Journal of Operational Research, 2004, 154/3 819-827. Hazra, P 2011. Public Relations. Viewed on 3 October 2011, http://medicom-communication.blogspot.com/. IBIS Associates, 2010. Contingency Planning. Available at http://www.ibisassoc.co.uk. Invisional Hosting, 2011. Company Profile. Viewed 3 October 2011, http://www.invisional.co.uk/ Medha Behera.The 7Ps of Marketing Mix.2008. Viewed on 3rd October 2011 from http://EzineArticles.com/1486721. Miles Raymond, 2003. Organizational Strategy, Structure and Processes. Stanford: Stanford University Press. Mind Teacher 2011. Marketing Mix. Chichester: Marketing Teacher Ltd. Viewed 3 October 2011, http://www.marketingteacher.com/. Mind Tools 2011. The Marketing Mix and 4 Ps: Understanding how to position your market offering. Viewed on 3 October 2011, http://www.mindtolols.com/. Neil H. Borden, 1965. The Concept of the Marketing Mix. Journal of Advertising Research. Cambridge: Cambridge University Press.Vol 2.1984. www.commerce.uct.ac.za/.../Borden,%201984. Ruden, B 2002. Marketing is more than Ads. Viewed 7 October 2011, http://www.ophmanagement.com/article.aspx?article=85332. Bibliography Baker Michael, 2008. The Strategic Marketing Plan Audit 2008. ISBN 19024333998. Borden H. Neil, 1942. The Economic Effects of Advertising. Homewood: Richard D. Irwin. Read More