Posted: August 29th, 2013
Marketing Plan for ITS Inc
I. Executive Summary
ITS is a company providing communication services to other companies and individuals. The two main products of the company are the voice and data / VoIP (Intergrated Telemanagement Services 2010). The company offers different services but these two services are the best as compared to the other services. In this case, the VoIP services are describing ITS thus, can stand up against the other companies in the same market (Intergrated Telemanagement Services 2010). In order for ITS Company to maintain their loyal customers and increase their customer base, ITS must have a strong customer care service that will enhance the fantastic customer relations. The customer care of ITS needs to be managed to follow the five main secrets of an excellent customer care relation.
The first secret is to ensure that there is maintenance of customer loyalty. In this case, ensure that the customer care department follows every need of the customer. This is where they will have follow up strategies to ensure that the customer is having favorable reception in the network connectivity (Horowitz 2011). The other secret is to have reasonable pricing strategies for the customers. In this case, the customer care department should be able to attract new customers or maintain their customers due to exceptional customer care services. The other secret is to ensure that the customer care department meets the need of the customers. In this situation, they should meet all the demands of customers and exceed their limits (Horowitz 2011).
The other secret in managing a customer care department is ensuring that there is the creation of trust. The department should be shown how to create trust with the customers for outstanding relations. Continuously measure the employee working, in the customer care department, to ensure that customers get the best quality services. It is worth noting the customer care management is not only for the customer care department but also for the whole company (Horowitz 2011). Therefore, employees of the company should be trained on how to treat, communicate and manage a strong customer care relation for the overall benefit of the company.
II. Situation analysis
The ITS company offers VoIP to their customers as their main product to solve customers communication needs. What ITS Company requires is a good strategy for customer targeting. Consumer target is referred to be among the best strategies to marketing where a company segment the market and concentrate on one customer. In this case, ITS Company is targeting small business companies and individuals. Therefore, for them to attract the targeted customer group they need to prepare the best strategies.
One of the best strategies is offering equipment that is user friendly. The communication equipment provided by the ITS Company to their customers should always be up to date and of high quality (Intergrated Telemanagement Services 2010). Secondly, the equipment should be easy to use for the customers. This is where the customers do not require a lot of training or any training to control the equipment. Additionally, the equipment should contain user-friendly applications for the customers. In this case, the customers require high quality equipment that is of high quality, and it is easy to manage and operate. Lastly, this equipment should be enjoyable for the customer to use.
The other strategy is that the ITS Company should provide their customers with products at a low cost as compared to their competitors. For instance, ITS Company should provide the high quality equipment that is user friendly to customers at low costs. On the other hand, they should make sure they do not go as low as possible to the point where they are straining the customers. However, they should not charge high costs that exploit the customers. Therefore, they should use the pricing strategies where they charge lower for their products than their competitors. By using these strategies, they will attract their targeted customers, and at the same time, they will retain loyal customers to the company.
III. Target Market
As discussed in the situation analysis, the target market is the small companies and individuals. To offer the best services to the different targeted groups they need to be segmented into groups. In this case, ITS Company needs to segment the targeted groups in to two. The first group will be the small companies (Nijssen and Douglas 2011). To attract and retain these small companies, the ITS Company need to follow certain strategies. The first is to learn the behavior of these companies. This is where they learn how these companies communicate inside and outside the company. This way the company would identify the needs of customers and solve even before the customers ask for them. The second is they should offer services that are free like free installation in order to attract customers. ITS Company should also make a difference between the small company and large company so that they cannot have their target group misplaced.
The second target group is the individuals. In this case, so many individual entrepreneurs would like to use the communication services but most of the time they lack a company that will offer their needs. ITS Company will try to solve their needs to create product packages that meet the individual needs. In doing so, they should consider offering the individuals with free services together with discounts and warranties. This way they would be able to take the individual market more than their competitors would do. Lastly, for the two-targeted groups ITS Company should make sure that their products are of high quality and user friendly so that they can create a strong customer relation for them.
IV. Product strategies
VoIP is the usage of internet and telephone for the purposes of the companies employees to communicate inside and out of the company to the other business. The main of the product strategies of the ITS Company is to ensure that they reduce the employee movement in and outside the office. Additionally, the company wants to reduce the amount of paper work in the office. This will also reduce the amount of garbage thus, increasing the level of cleanliness in the offices. This means that it is user friendly. In this situation, VoIP services are the best because they help in the reduction of the above services.
V. Competitive analysis/ SWOT analysis
The first one is the strength. ITS Company has a personal touch with their customers as compared to the other competitors. ITS Company treats their customers like their own family members. This helps them to maintain their loyal customers, and at the same time, it improves or increases their customer base. The second is the weakness. ITS Company is finding it difficult to penetrate in the competitor’s local area. This is because their competitors have already established a solid customer relation to the local area. The third is the opportunity. In opportunity, ITS Company has the capability of extending their territory thus increasing their customer base. The last one is the threat. ITS Company is faced with the threat of competitors. This is where large companies like Telepacific Company introducing new low price quality products in the company as compared to them.
VI. Marketing Goals
The main marketing goals are to reach the targeted group in the company. For instance, many small companies do not know about ITS Company or the VoIP product. Additionally, individuals who communicate to relatives in other states or entrepreneur do not know about the advantages of the VoIP product (Nijssen and Douglas 2011). Additionally, their goal is to obtain these targeted groups as part of their company family. Therefore, in this situation the main marketing goals of the company are to educate the targeted groups.
VII. Marketing objectives
The main marketing objective is to reach out to the targeted group. The marketing department work is to ensure that customers are away of the company and products the company is selling or offering to the customers. The marketing department must have certain objectives in order to reach the different companies (Nijssen and Douglas 2011). The first objective is to reach the out to the targeted group. This is where they will advertise their products and company to create awareness to their potential customers.
The second objective, which is line with the company’s objectives, is to increase the customer base as they retain the loyal customers in the company. In this situation, the marketing department will collect data for the company for the purposes of knowing the customers needs. Most of the times, marketing is usually done in the field hence they have an opportunity to meet with the customers face to face. In this case, they have the opportunity to study the consumer behavior and learn their needs (Nijssen and Douglas 2011). This study result of the consumer will be of considerable help to the company. Additionally, they will have the opportunity of showing the customers the personal touch ITS Company has for its customers.
VIII. Strategic initiative
The strategic initiative of the company is to ensure that the products reach the consumer at the right time and in excellent quality. This is only possible of the marketing mix variables are utilized in the correct way. The first mix is product. The company must ensure that their products are of high quality and user friendly. The next mix is promotion. This is where ITS Company needs to educate the potential consumers on the product. Price is the next marketing mix (Grewal and Levy 32). In this case, ITS Company wants to provide their consumer with the best product at a lower price. The last marketing mix is distribution. This is where ITS Company must produce their goods to customers at the right time.
When it comes to distribution, the company has considered using the UPS or FedEx from their office in California to ensure that the communication products reach their consumers wherever they located (ITS 2011). All this shows that the marketing mix product, price, promotion, and distribution are interrelated, and there is no way that one can work without the other (Grewal and Levy 35). For instance, the pricing strategies must be in line with the distribution process because they cannot distribute a product to no customers if it is expensive for them to buy. Additionally, they cannot distribute a product of low quality because it is cheap.
One of the tactics that the company wishes to employ is the use of discounts in order to attract new customers. Discounts are a form of product promotion where the product price is reduced with a certain percentage. In this case, ITS Company wishes to offer their customers their products at twenty-five percent discount. This means that the new customers will buy their products at a lower price than the normal price with twenty-five percent. This will attract the new customers to buy their products and in the end, their long-term goal of increasing the customer base will be met.
The other tactics they are willing to employ is the use of advertising methods. Billboards, the internet and radio are some of the methods they are going to use to their company and products. This is because they will be able to appeal to the radio listeners and the internet users. Additionally, they will attract the drivers and other operators of the transport industry in through billboards. This will lead to the company awareness and the increase of the customer base.
ITS Company earns revenue of approximately seven million two hundred thousand dollars. This money requires a sizeable budget so that it can be used appropriately. The money allocated for marketing or advertising the company products is three million dollars. This money can be divided into different groups depending on the advertisements the company is willing to make. It can be divided into three groups the first million dollars being for the advertisements like radio billboards and radio. The second million dollars can be used for the training of the marketing department on what they are going to do in the field. Additionally, the money will be utilized for fieldwork. The last million can be used to cater for the discount cost the company is offering to its customers.
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