Strategic Marketing.
PROJECT PHASE-I
Paktel Limited.
Presented To
Mr. Saquib Bhatti
Punjab College of Business Administration
Preface
The basic purpose of this project was to study & analyze the complete micro and macro environment of the organization. This is conducted in developing new business or idea or strategically planning. This process involves many steps and procedures and passes through a number of stages. By understanding and studying this process at this stage we can easily make it useful for our potential future life.
We choose Paktel Limited for this study because the company is a completely service oriented company and has many forces and influences acting on it from its environment. The above mentioned company is a perfect example of a growing concern looking for a strategic change.
From humble beginning in 1990 from Karachi, Paktel Limited., is now one of the oldest and Pakistan's largest communication service company. Information on the subject.
Acknowledgement
We have a few names in our acknowledgement list. On the top of the list is our most respectable teacher Mr. Saquib Bhatti, This man is a subject in his self. He gave us practical knowledge we had required at this stage and in our future life too. We are proud to be a student of this teacher
The second one is Mr. Rana Umair Muzamil of Paktel Limited, who provided us with lots of knowledge at the subject. Mr. Muhammad Umar is currently performing his duties at the head office of the company.
The Third one is Mr. Mohammed Ashraf, who also gave us a good knowledge on the subject and helped us to contact concerned person for further studies and also helped a lot in our work.
INTRODUCTION:
The company operates in a particular type of environment which is a combination of different forces acting on the organization. The organizations always try to keep a strategic fit with their environment. If a company does not strive it to keep its pace with the continuously changing environment becomes extinct.
To cope up & pace up with the ever changing environment, the company should first conduct a comprehensive environmental analysis of its surroundings and thus formulate their strategies to deal with the challenges.
Managers of the TQM era always keep an up to date knowledge of their environments. The organizations are spending millions and millions of huge budgets to generate needed, timely, and accurate information for the use of their managers. Companies must take an active insight and outside view of themselves, this provides them with the information of the opportunities and threats laying the external environment and helps in recognizing their weaknesses and strengths.
Lately in Pakistan the most of the local and national companies are emphasizing on the Environment analysis. This is a high time for all of our business segments to recognize the importance of environmental analysis before starting a new business or widely, planning strategically.
The environmental analysis helps the mangers to decide:-
* Directions ( goals & objectives)
* Procedures (Distribution of Power, systems, plans, etc...)
* Controls.
Thus it is highly recommended for all business to keep an efficient MIS System in their organization so that Identification of problem and the process of strategic planning can scientifically done.
ENVIRONMENTAL ANALYSIS OF PAKTEL LIMITED.
GENRAL INFORMATION:-
Paktel limited is the first mobile phone operator in Pakistan. Paktel Limited is considered a leader in terms of coverage network quality customer services and value added services. It is presently offering cellular services in 21 cities of Pakistan. Paktel is the fastest growing cellular network in the country accompanied by the highest growing customer base with more than 80,000 customers in 21 operating cities. Paktel faces competition from three other mobile phone operators Mobil ink, Instaphone & Ufone.
HISTORY:-
Paktel Limited is a strategic business unit of a Singapore based communication company MILLICOM. Paktel limited is the first and oldest mobile phone company in Pakistan with its name considered to be status symbol initially. Paktel is considered a leader in coverage network quality customer services and value added services. It is presently offering cellular services in 21 cities of Pakistan.
It is the fastest growing cellular network in the company accompanied by the highest growing customer base with more than 80,000 customers in 21 cities.
Paktel is facing tough competition from three other mobile phone services. Two of them are operating in GSM. In respond to this competition call Paktel wants tom enter in GSM industry to expand its current customer base.
Back in early 1990's when Paktel was launched in Pakistan; it was the sole supplier of mobile phone service. The early operating and owing a mobile cost was high and thus it was a status symbol. The mobile phone was generally termed as PAKTEL. The brand name was replaced as the product name.
ACCORDING TO JANG NEWS GROUP REPORTING CELL:-
* In the last Seven years the mobile user's number has increased 18 times.
* In 1996 numbers of mobile users were 68,000.
* Presently more than 1.2 million mobile users.
* A number of 9, 04,000 started using mobile in last two years.
* Out of 120 numbers of people, one person has a mobile.
* Number of Prepaid card users is 9, 69,000.
* In year 2000, 3, 06,000 people started using mobile phone service.
* Growth was slow during year 1990-1996 (limited to upper class, competition among three mobile companies, service only in Karachi & Islamabad.)
* In year 1996, number of mobile users doubled. (Service provided in Lahore, Faisalabad, gujrat.)
* In year 1998, introduction of prepaid mobile connections resulted in rapid growth.
* Annual increase of 60,000 mobile users on average from year 1996-2000.
* Free incoming was introduced in 2001.
* Ufone entered into market in 2001.
* A 4, 36,000 connections were sold during 2001.
* In 2001 total number of users were 7, 42,000.
* A growth of 62.9% in 2002.
* Total number of users till 2002 1.2 million.
* A number of 24,000 post paid connections are in use.
* Coverage has been segmented to three zones
> Southern
> Northern
> Central
* Coverage in 76 cities of Pakistan
* Different 23 cities will be added to the list soon.
* Two companies are completely operating on G S M.
The Marketing Environment.
The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'.
The environmental analysis of "PAKTEL" has been conducted in these phases:-
1, MACRO ENVIORNMENT ANALYSIS.
2. MICRO ENVIORNMENT ANALYSIS
3. INTERNAL ENVIORNMENT.
MACRO ENVIORNMENTAL ANALYSIS.
The macro-environment
This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer ...
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3. INTERNAL ENVIORNMENT.
MACRO ENVIORNMENTAL ANALYSIS.
The macro-environment
This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.
What is PEST Analysis?
It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from:
. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Socio-cultural forces, and Technological forces. These are known as PEST factors.
POLITICAL ENVIORNEMNT
Political Factors
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:
. How stable is the political environment?
2. Will government policy influence laws that regulate or tax your business?
3. What is the government's position on marketing ethics?
4. What is the government's policy on the economy?
5. Does the government have a view on culture and religion?
6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?
The overall political environment prevailing in the country is much unpredicted. The change in Government has been rapid. The mobile phone industry has not been heavily affected by these rapid political changes, but the overall political scenario has not been favorable for the business.
NOTE. The reduction in tax deduction on a prepaid card use has increased the number of out going calls.
Economical Environment
Economic Factors
Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:
. Interest rates
2. The level of inflation Employment level per capita
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on
The economical environment prevailing in the country has been not favorable. Due to bad economic environment a significant portion is shifting to lower level and a very minor portion shifts upward. Thus the companies should try to introduce low budget mobile packages to attract a bigger portion of market who possess the buying power of a mobile. The consumer is looking for good value for money.
Social Environment:
Socio-cultural Factors
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
. What is the dominant religion?
2. What are attitudes to foreign products and services?
3. Does language impact upon the diffusion of products onto markets?
4. How much time do consumers have for leisure?
5. What are the roles of men and women within society?
6. How long are the population living? Are the older generations wealthy?
7. Do the population have a strong/weak opinion on green issues?
In the social environment scenario the major portion of the society which is females has a very small portion of mobile use while they constitute more than half of population. On the other sides the mobile is highly acceptable and gracious for male users.
The mobile usage in female segment has started to grow now but still holds lots of potential. If explored properly this segment can earn high yield for the companies operating in same mobile phone industry.
There are some social threats in mobile phone industry which are very minute and negligible presently. One of the issues is that the increased use of mobile phone makes you less active.
Technological Environment
Technological Factors
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
. Does technology allow for products and services to be made more cheaply and to a better standard of quality?
2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
4. Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?
The technological environment of the country changes slowly overall, but in the mobile phone industry the trend for GSM network is increasing, while on the other end a new satellite communication service has also entered the market with the name of THURAYA.
NATURAL ENVIORNMENT
As the company is providing services in communication, it lacks the dangers of being HAZARDOUS to the society. Thus it has a positive point attached to it, of being safe to the environment.
The Micro-Environment
This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence.
SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues.
Once key issues have been identified, they feed into marketing objectives. It can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Force analysis. It is a very popular tool with marketing students because it is quick and easy to learn.
SWOT stands for strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses are internal factors. For example, strength could be your specialist marketing expertise. A weakness could be the lack of a new product. Opportunities and threats are external factors. For example, an opportunity could be a developing market such as the Internet. A threat could be a new competitor in your home market. During the SWOT exercise, list factors in the relevant boxes. It's that simple.
A word of caution, SWOT analysis can be very subjective. Do not rely on it too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use it as guide and not a prescription. Adding and weighting criteria to each factor increase validity, but that's another lesson!
STRENGHTS
* Wide coverage
* Call connectivity
* Strong capital base
* Pioneers
* Loyal customers
* Perception of economy
* Strong signals
* Voice quality
WEAKNESS
* Technology
* No variety in sets
* Followers
* Reactive not proactive
* Battery life
* Privacy
* Poor customer services
* Ignoring post paid
* No value added services
* Non-competitive packages
* Inconvenience in changing sets
* Costly to change set
* Hacking
* No clear competitive advantages
* Positioning
* Sales team
* Low ranking in consumer mind
OPPERTUNITIES
* High industry growth rate 300%
* Wide coverage
* Female segment
* Demand is higher than supply.
* Gap in geographical coverage
THREATS
* Major supplier as a competitor
* New competitors
* Economic Recession
* Expected rivalry of Vodacom.
Porter's Five Forces Model.
Analyzing the environment - Five Forces Analysis
Five forces analysis helps the marketer to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers i.e. one of its SBUs.
Five forces looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry.
The threat of entry.
Economies of scale e.g. the benefits associated with bulk purchasing.
The high or low cost of entry e.g. how much wills it cost for the latest technology?
Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up?
Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects.
Will competitors retaliate?
Government action e.g. will new laws be introduced that will weaken our competitive position?
How important is differentiation? E.g. The Champagne brand cannot be copied. This desensitizes the influence of the environment.
The power of buyers
This is high where there a few, large players in a market e.g. the large grocery chains.
If there are a large number of undifferentiated, small suppliers e.g. small farming businesses supplying the large grocery chains?
The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another.
The power of suppliers
The power of suppliers tends to be a reversal of the power of buyers.
Where the switching costs are high e.g. switching from one software supplier to another.
Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
There is a possibility of the supplier integrating forward e.g. Brewers buying bars.
Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places.
The threat of substitutes
Where there is product-for-product substitution e.g. email for fax where there is substitution of need e.g. better toothpaste reduces the need for dentists.
Where there is generic substitution (competing for the currency in your pocket) e.g. Video suppliers compete with travel companies.
We could always do without e.g. cigarettes.
Competitive Rivalry
This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the center of the diagram.
Porter's Five Forces Model for Paktel.
COMPETITORS ANALYSIS
Knowing one's competitors is crucial to effective marketing plans. A company must constantly compare its products, prices, channels, and promotion with its close competitors. In this way, it can identify areas of competitive advantages and disadvantages... The company can launch more precise attacks on its competitors as well as prepare stronger defenses against attacks.
Following is the criteria to decide your competition:-
Who are our competitors?
What are their strategies?
What are their objectives?
What are their strengths and weaknesses?
What are their reaction patterns?
Who are our competitors?
We are operating in Communication industry and our competition is with firms which are providing the mobile phone services. Lately these firms include Mobil ink, Instaphone and Ufone.
What are their strategies?
Our competition is trying to increase their market share through cost differentiation and value added services. This includes attributes like packages offered, connectivity, customer care etc.
What are their objectives?
The objective of our competitors are to increase their market share through targeting possible segments and sell higher numbers of connections then competition.
What are their strengths and weaknesses?
Mobil ink best service / status symbol
Ufone good service / economical
Instaphone traditional / economical
DEMOGRAPHIC ENVIORNMENT
The demographic environment of the country is changing slowly. Now its population is 14 Million, 53% of the population consists of females. Education level is low, but increasing. 34% of the population lives in urban areas.
A major portion of population is belongs to poor class, rest constitutes of a small middle and upper-class. Both middle and upper class segments use mobile phones. Mostly males use the mobile phones; only 3% are female mobile users. Lately the mobile phone market was 1.2 Million. People like to live in urban places.
REGIONAL ANALYSIS
The mobile photon market is basically concentrated in cities with high number of businesses operating like Lahore Karachi Peshawar Multan Sargodha Gujranwala. Etc....and in the rural area we find wadaraaz and big land lords using this facility. Thus we can say that regionally mobile phones are used all over the Pakistan so the more you expand the more you can earn.
Consumer Buying Process
If a marketer can identify consumer buyer behavior, he or she will be in a better position to target products and services at them. Buyer behavior is focused upon the needs of individuals, groups and organizations. It is important to understand the relevance of human needs to buyer behavior (remember, marketing is about satisfying needs).
Let's look at human motivations as introduced by Abraham Maslow by his hierarchy of needs: The hierarchy is triangular. This is because as
You move up it, fewer and fewer people satisfy higher level needs. We begin at the bottom level. Physiological needs such as food, air, water, heat, and the basic necessities of survival need to be satisfied. At the level of safety, man has a place to live that protects him from the elements and predators. At the third level we meet our social and belongingness needs i.e. we marry, or join groups of friends, etc. The final two levels are esteem and self-actualization. Fewer people satisfy the higher level needs. Esteem means that you achieve something that make you recognized and give personal satisfaction, for example writing a book. Self-actualization is achieved by few. Here one is the one of a small number to actually do something. For example, Neil Armstrong self-actualized as the first person to reach the Moon. The model is a little simplistic but introduces the concept a differing consumer needs quite well.
To understand consumer buyer behavior is to understand how the person interacts with the marketing mix. As described by Cohen (1991), the marketing mix inputs (or the four Ps of price, place, promotion, and product) are adapted and focused upon the consumer. The psychology of each individual considers the product or service on offer in relation to their own culture, attitude, previous learning, and personal perception. The consumer then decides whether or not to purchase, where to purchase, the brand that he or she prefers, and other choices.
This is a very simple example of what can be a very complex process. There are many complex and detailed models of buyer behavior such as The Source Loyalty Model of Webster and Wind (1972), Decision Process Models such as Cyert (1956), Organizational Models such as Webster and Wind (1972), Consumer Buyer Behavior such as Sheth and Howard (1969) and Engel et al (1978), and Industrial Buyer Behavior such as Sheth (1973), as well as many others.
:
The Buyer Decision Process.
. Recognition of a need - to communicate with friends, as a fashion item.
2. Choice of level of involvement (i.e. justifying you time and effort e.g. low for bubble gum, high for a holiday). Medium level of involvement to justify cost and coverage of telephone.
3. Identification of alternatives. Which companies are offering the most suitable packages? ABC inc. or XYZ inc.?
4. Make decision. Go with service XYZ Inc.
5. Action - Did it work? What was the telephone bill? Did you friends like it?
Types of Buyer Behaviour
•Complex buyer behaviour e.g. Intel Pentium Processor
•Dissonance-reducing behaviour (brand reduces after-sales discomfort)
•Habitual buying behaviour e.g. salt - little difference
•variety seeking behaviour - significant brand differences e.g. soap powder.
WHY THE CONSUMER HESITATE TO BUY
Despite an on slaught of marketing hype, consumers remain cool to the idea of shopping via their mobile phones and wireless handheld devices. It could be because mobile commerce involves new technologies that bring a host of unique problems yet to be solved. Or, the resistance could be more fundamental.
REASON BEHIND IT
Industry analysts who spoke with Wireless News Factor said that infrastructure concerns, coupled with more general, consumer adoption issues, have created a nearly insurmountable obstacle to widespread m-commerce and that the concept itself is flawed.
"Selling physical goods through this channel makes no sense, the phone user interface is ill-suited to the shopping experience, and users are motivated to use their phone by urgency -- which is at odds with having to wait for delivery."
If the technology and pricing for consumer devices is improved, First brook said then those infrastructure upgrades should boost prospects for wireless commerce in the U.S. He said that a similar process already has started in other markets where mobile commerce is more common.
"In Europe and Asia, m-commerce is more advanced, with I-mode in Japan as the best example," First brook said.
Better technology, of course, will not guarantee success for m-commerce. As with e-commerce, Aberdeen's Ro said, marketers will need to ensure that sales tactics do not become intrusive or annoying.
Ro said sending coupons to shoppers via their handhelds could be a good use for mobile commerce, as long at it does not become a new kind of spam. But he is leery about other potential uses for m-commerce technology.
For example, he said, some companies are testing systems that beep mobile phone users who are in a store when certain products are for sale.
Objective Setting
The objective is the starting point of the marketing plan. Once environmental analyses (such as SWOT, Five Forces Analysis, and PEST) and marketing audit have been conducted, their results will inform objectives. Objectives should seek to answer the question 'Where do we want to go?'. The purposes of objectives include:
* to enable a company to control its marketing plan.
* to help to motivate individuals and teams to reach a common goal.
* to provide an agreed, consistent focus for all functions of an organization.
We will chalk our plan of action for Paktel Limited by setting our objectives first. All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed.
* Specific - Be precise about what you are going to achieve
"We have lost our market leadership, being the first one in mobile phone industry, the company must strive to build premium reputation again"
* Measurable - Quantify your objectives
* Achievable - Are you attempting too much?
"The company is switching to the GSM network, thus they will have a bright opportunity to earn back their lost position."
* Realistic - Do you have the resource to make the objective happen (men, money, machines, materials, minutes)?
"Resources are always scarce, but we must utilize them with optimum level to increase profitability. On th realistic grounds the company is strong enough to do it."
* Timed - State when you will achieve the objective (within a month? By February 2010?)
"For our operational time, we will require 12-15 months before giving high turnovers."
Some examples of SMART objectives follow:
. Profitability Objectives.
To achieve return on capital employed by August 2004.
2. Market Share Objectives.
To gain market for mobile phone users.
3. Promotional Objectives.
To increase awareness of the brand in Pakistan & strongly in coverage areas.
4. Objectives for Survival.
To survive the current recession.
5. Objectives for Growth.
To increase the size of our operations.
6. Objectives for Branding.
To make it more elegant.
There are many examples of objectives. Be careful not to confuse objectives with goals and aims. Goals and aims tend to be more vague and focus on the longer-term. They will not be SMART. However, many objectives start off as aims or goals and therefore they are of equal importance.
Marketing plans.
Marketing plans are vital to marketing success. They help to focus the mind of companies and marketing teams on the process of marketing i.e. what is going to be achieved and how we intend to do it.
There are many approaches to marketing plan. Marketing Teacher has focused upon the key stages of the plan. It is contained under the popular acronym AOSTC
. Analysis
2. Objectives
3. Strategies
4. Tactics
5. Control.
Stage One - Situation Analysis
* Marketing environment
* Laws and regulations
* Politics
* The current state of technology
* Economic conditions
* Socio-cultural aspects
* Demand trends
* Media availability
* Stakeholder interests
* Marketing plans and campaigns of competitors
* Internal factors such as your own experience and resource availability
* Also see tools for internal/external audit:
SWOT
PEST
Porter's Five Forces
Marketing Environment
Stage Two - Set marketing SMART objectives
* Specific - Be precise about what you are going to achieve
* Measurable - Quantify you objectives
* Achievable - Are you attempting too much?
* Realistic - Do you have the resource to make the objective happen (men, money, machines, materials, minutes)?
* Timed - State when you will achieve the objective (within a month? By February 2010?)
If you don't make your objective SMART, it will be too vague and will not be realized. Remember that the rest of the plan hinges on the objective. If it is not correct, the plan will fail.
Stage Three - Describe your target market.
* Which segment?
* How will we target the segment?
* How should we position within the segment?
* Why this segment and not a different one? (This will focus the mind).
* Define the segment in terms of demographics and lifestyle. Show how you intend to 'position' your product or service within that segment. Use other tools to assist in strategic marketing decisions such as Boston Matrix , Ansoff's Matrix , Bowmans Strategy Clock, Porter's Competitive Strategies, etc.
Stage Four - Marketing Tactics
Convert the strategy into the marketing mix (also known as the 4Ps).
These are your marketing tactics.
Price Will you cost plus, skim, match the competition or penetrate the market?
"Our pricing strategy will be in accordance with the different packages for our different selected segments"
Place Will you market direct, use agents or distributors, etc?
"We will use a combination of different placing strategies, using already established Paktel points, agents, distributers & authorized dealers."
Product Sold individually, as part of a bundle, in bulk, etc?
"Will be sold in individual packages, company packages, family packages, friends packages etc. The products would be covering specific requirements of their respective segments."
Promotion Which media will you use? e.g. sponsorship, radio advertising, sales force, point-of-sale, etc?
"We will promote our product to their segments by analyzing the appropriate mode of communication with them. On broad basis we are going to use Print, Electronic, Radio & personal mediums for promotion."
Think of the mix elements as the ingredients of a 'cake mix'. You have eggs, milk, butter, and flour. However, if you alter the amount of each ingredient, you will influence the type of cake that you finish with.
Stage Five - Control
Remember that there is no planning without control. Control is vital.
* Start-up costs
* Monthly budgets
* Sales figure
* Market share data
* Consider the cycle of control
Finally, write a short summary (or synopsis) which is placed at the front of the plan. This will help others to get acquainted with the plan without having to spend time reading it all. Place all supporting information into an appendix at the back of the plan.
Marketing Control.
'The process of monitoring the proposed plans as they proceed and adjusting where necessary.'
There is no planning without control. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.
Internal Marketing.
Internal marketing is an important 'implementation' tool. It aids communication and helps us to overcome any resistance to change. It informs, ands involves all staff in new initiatives and strategies. It is simple to construct, especially if you are familiar with traditional principles of marketing. If not, it would be valuable to spend some time considering marketing plans. Internal marketing obeys the same rules as, and has a similar structure to, external marketing. The main differences are that your customers are staff and colleagues from your own organization.
Managing the implementation of internal marketing
We use the acronym AOSTC - Analysis, Objectives, Strategies, Tactics, and Control. An approach for the implementation of internal marketing. The process is straightforward.
* Set objectives for internal marketing e.g. to persuade 100 staff to join a new Performance Related Pay (PRP) scheme.
* Your strategy is 'internal marketing.'
* Tactics would include an internal application of the marketing mix, and could include staff forums, presentations, an intranet, away days, videos, personal visits by company directors or newsletters.
* Evaluation would consider the take up of PRP against your objectives, attendees at away days, visits to an intranet page, and so on.
Let's have a look a closer look at the practicalities of internal marketing.
At this stage internal marketing meets traditional 'change management.' Firstly you should identify your internal customers. As with your external customers, they will have their own buyer behavior, or way of 'buying into' the changes, which you are charged to implement. The similarities in differing groups of internal customers allow you to segment them. As Jobber (1995) explains, you can target three different segments namely 'supporters,' neutral,' and finally 'opposers.' Each group requires a slightly different internal marketing mix in order that your internal marketing objectives can be achieved.
Strategic Marketing________________________________________________________________________________Paktel Limited
