ETING PLANNING

111


INDUSTRIAL, BUSINESS-TO-BUSINESS FMCG AND SERVICES MARKETING

The Marketing of Services Service
Characteristics

The Uncertainties of Service

n Intangibility – There is nothing to feel or touch
within service delivery – just the delivery
experience

n Physical state of body is variable

n Inseparability – a service cannot be reused – it is
a once only experience

n State and complexity of the service

n Perishability – services are consumed as they
go, they are perishable, and cannot be stored
for future use
n Heterogeneity – relates to the variability in the
service delivery, implying that the service delivery
or service experience could be different on every
occasion

n Mental stage of mind changes based upon
the service delivery and the service situation
n Capacity to withstand the experience
n Amount and nature of information required

112


The Services Mix – Physical Environment,
People and Process
Physical Environment

People

Process

The place where the service is
delivered
Look for consistency and quality
Establishing the brand image
Wearing of uniforms
Consistent interior design and
de´cor
Human and physical contribution
to the physical service
experience

Investing in staff and training
Empowerment of staff
Internal marketing

Decision making capacity of
staff in relation to the service
delivery
Commitment of staff
Sufficient people – i.e. sufficient
resource

Customer care and customer
services
Systems and process
Transactional ability
24/7 accesses
Telephone systems
Security systems
Service standards
Quality
Billing

MARKETING PLANNING

113


INDUSTRIAL, BUSINESS-TO-BUSINESS FMCG AND SERVICES MARKETING

The Marketing Mix for Service Organizations

114



The Importance of Service Quality

MARKETING PLANNING

115


INDUSTRIAL, BUSINESS-TO-BUSINESS FMCG AND SERVICES MARKETING

Implementing a Quality Culture

Measuring Quality and Service Success

Implementing a quality culture may mean
a focus on developing the following areas:

n Set personal and quality goals

n Innovation

n Check customer satisfaction

n Status

n Regard the next link as a valued customer

n Leadership

n Avoid error


n Rewards

n Perform tasks effectively

n Values

n Utilize resources well

n Developments of a learning organization

n Be committed

n Empowerment in achieving goals

n Learn to finish what you have started

n Establish personal accountability

n Control stress
n Be ethical
n Demand quality

116


Hints and Tips
n Develop a thorough knowledge of the different
types of organizations and the variables of the
different marketing mixes for each of the
different marketing applications

n Demonstrate an ability to apply your marketing
knowledge and understanding in a range of
different settings and be able to show how to
effectively plan and develop different markets

n Consider the importance of services to the modern
market economy and their importance
n Recognize the different characteristics of services
and how they impact upon the overall service
experience
n Go to www.cimvirtualinstitute.com and
www.marketingonline.co.uk for additional support
and guidance

n Understand the different characteristics of industry
and demonstrate how the services, marketing mix
of people, process and physical development are
central to successful service delivery

MARKETING PLANNING

117


NOT-FOR-PROFIT, SMEs
AND VIRTUAL MARKETING

Unit 11

LEARNING OUTCOMES


KEY REVISION POINTS

å Develop a marketing plan and select an
appropriate marketing mix for an organization
operating in any context such as voluntary,
not-for-profit and SMEs
å Explain how marketing plans and activities vary
in organizations that operate in a virtual market
place and develop an appropriate marketing
mix

å Defining not-for-profit organizations
å Marketing planning and segmentation for
charities
å Managing the marketing mix for not-for-profit
and charities
å Marketing planning and the marketing mix for
SMEs
å The virtual marketing environment
å The advantages and disadvantages of virtual
marketing
å Product, price and promotion for the virtual
organization

Syllabus Reference: 4.2–4.3


Marketing Planning and Segmentation
for Charities


n Resources required

Setting objectives

n Political influence

Set measurable marketing objectives that reflect
the desire of the charity to improve and enhance the
quality of life – for example ‘To service the needs and
wants of the ‘‘users’’ of financial contributions, time
and support of the public donor’

n Social responsiveness

Marketing Audit
The audit should focus upon:
n Competitive charities
n Research into ‘customer needs’
n Economic situations in other countries

n Scale of user needs
n PR required and currently used

Market Segmentation
Key targets include:
n Donors, volunteers and clients

Marketing Planning and Control
n Consistency and quality of service

n Customer satisfaction
n Ability to implement effectively
n Internal and external communications

n Taxable benefits for charitable giving
MARKETING PLANNING

119


NOT-FOR-PROFIT, SMEs AND VIRTUAL MARKETING

120

Marketing Planning for Not-for-Profit
Organizations

n Resources required

Setting objectives

Market Segmentation

Set measurable marketing objectives that reflect the
purpose of the business – for example ‘to inform the
public about the doctrine of the church and encourage
church membership growth’

Key targets include: Everyone – the church has a mass
market approach – the aim is to be all inclusive of

society

n Political influence

Marketing Planning and Control

Marketing Audit

n Accountability

The audit should focus upon:

n Customer attendance

n Other churches

n Ability to implement effectively

n Role of religion in society

n Internal and external communications

n Different doctrines
n Economic funding for
n Taxable benefits for church going


Managing the Marketing Mix for Charity and
Not-for-Profit Organizations
Product

This is the benefit that the organization offers –
i.e. donations, services, support, well-being, religion

Price
Price holds two interests:
The amount of money generated vs. the cost of the
service provided

Promotion
Sponsorship
Publicity
Direct marketing
(key cost effective promotional tools)
Some advertising

People
The need for and use of unpaid support from voluntary
workers
People – interface matters to the public

Place

Physical Evidence

Service delivery – mass accessibility

Personal and physical presentation may encourage
greater donations. Physical evidence of how money is
used


Ability to collect funds – i.e. Internet, phone, post,
face-to-face collections
Charitable shops – intensive distribution

Process
The process of income collection and distribution
of the cause or business outcome

MARKETING PLANNING

121


NOT-FOR-PROFIT, SMEs AND VIRTUAL MARKETING

Marketing planning for SMEs
The stages of the outline marketing plan for
SMEs include:
1. Collect data and review the plan as a whole
2. Decide on the plan content
3. Plan and design the layout
4. Write it up clearly and simply
5. Assemble the finalized information for your
marketing plan

122

6. Include competitor comparison tables
7. Prepare a SWOT analysis
8. Include SMART objectives

9. Include sales forecasts
10. State the marketing strategy
11. Provide the detailed plan of action
12. Include a time table for implementation
13. Put in key controls in order to monitor plan
14. Keep the plan to between 10 and 20 pages


The Marketing Mix for SMEs
Product
Product benefits
Pattern of demand
Portfolio of products for different life cycle stages
Product value

Place
Often reliant on channels for distribution rather than
direct to customer – due to lack of resources
Prefer to invest in production as opposed to
distribution

Promotion
Sales promotions

Price

PR

To determine effective price – sales targets, price
stability, increasing market share, beating same

level competition, maximizing profit

Publicity

Avoid local price wars – set prices to maintain
margins

Cost effective and affordable

Personal selling
Local or appropriate business advertising

MARKETING PLANNING

123


NOT-FOR-PROFIT, SMEs AND VIRTUAL MARKETING

Marketing Challenges for SMEs
Lack of resources
Lack of money
Poor cash flow
Lack of formal budgeting
Lack of experience
Short-term planning
Entrepreneurial but not contained
Growth unplanned and often unmanageable

124



Virtual Marketing – Business Benefits

Supporting Virtual Marketing Activities

n Market penetration – i.e. global communications
mean global access

n Sales – achieved through increased awareness
of brands and products, supporting decisions and
enabling online purchases

n Market development – the Internet can be used
to sell existing products into new markets at
reduced costs – with low cost advertising
n Product development – the Internet is excellent
for supporting the development of new products
and services
n Diversification – new products and services are
sold into new markets – IT equipment, mobile
communications

n Marketing communications – the use of the
website for communication messages is very
powerful
n Customer service – supplementing telephone
operators with on line information
n Public relations – the Internet can be used as
a channel for PR and provide the opportunity to

frequently update information with hard copy print
and postage costs
n Marketing research – datamining, databases are
effective MKIS tools

MARKETING PLANNING

125


NOT-FOR-PROFIT, SMEs AND VIRTUAL MARKETING

The Advantages and Disadvantages of
Internet Marketing
Advantages of Internet Marketing
n
n
n
n
n
n

Cost reduction
Competitive advantage
Capability
Communication improvements
Control
Customer service improvements

Disadvantages of Internet Marketing

n
n
n
n
n
n
n

The Internet replaces people
The potential demise of the high street
The loss of the personal touch
Security and privacy
Accessibility
Technological defects
Information overload

126


The Marketing Mix for Virtual Organizations
Product
Speed of development
Rapid product life cycles
Nature of packing
Warranties/guarantees

Price

Place
The Internet is the point of distribution, but couriering,

postage, logistics are all still factors of the Internet as
a distribution channel
Web advertising
DRA advertising
Banner advertising
Pop-ups
Sales promotions

Reduced costs, e.g. no middle men, less
organizational costs
Customer expectations – i.e. lower costs
Transparent pricing structures

MARKETING PLANNING

127


NOT-FOR-PROFIT, SMEs AND VIRTUAL MARKETING

Hints and Tips
n These particular syllabus elements are about
showing that you understand that marketing
is applied differently in a range of different
organizations and sectors
n Always show that you understand the difference in
objectives, rationale for existence, marketing
audit, marketing mixes and marketing planning
and control
n There will most likely be a question that

challenges your understanding of marketing in
another sector. Always ensure you have some
good example to hand to support your answers
and develop your thinking

128

n Ensure that you are familiar with the advantages
and disadvantages of virtual sectors vs. face-toface business and be able to illustrate your
understanding of holistic business benefits
n Keep up to date with various technologies, trends
and activities in virtual markets
n Be sure to justify your planning and marketing mix
ideas in different sectors to demonstrate your
ability to think things through and make wise
marketing decisions
n Go to www.cimvirtualinstitute.com and
www.marketingonline.co.uk for additional support
and guidance