THE MARKETING PLAN - TSYS
TSYS (Total System Services, Inc.® )
1. Terms of Reference
This marketing plan is for TSYS (Total System Services) which is the second largest processor of merchant acquirers and bank credit card issuers in the world. Its UK Headquarter is based in York and has major clients in the UK. This marketing plan is for the UK which focus on its various products like TS, TS2 and TS Prime.
2. Executive Summary
The executive summary describes the report's major findings and recommendations. It is designed to provide a busy reader with the major issues contained in the report. The executive summary allows the reader to gain insight to key outcomes without having to read all of the report. Bullet-points can be used to present the key points in the executive summary.
3. Business Mission
The business mission is a broadly defined, enduring statement of purpose that distinguishes a business from others of its type.
It should state “what business is the company in?” and “what business does it want to be in?” It may include the markets being served, the customer needs being satisfied, and the technology used.
A mission statement can dramatically affect the range of a firm's marketing activities by narrowing or broadening the competitive playing field.
4. External Marketing Audit
A marketing audit is a systematic examination of a business marketing environment, objectives, strategies and activities, with a view to identifying key strategic issues, problem areas, and opportunities. It provides the basis upon which a plan of action to improve marketing performance can be built.
The external marketing audit focuses on:
* Macro environment
* Micro environment including:
- The market
Note that information may not be available on all of the areas listed under each topic.
The macro environment consists of broad environmental issues that impinge on the business. You may wish to analyse it using the following headings:
Not every heading may be used; if it is not likely to impact the company, leave it out. For every event, state its likely impact on the company and the resulting implications.
The market consists of:
· analyses of market size, growth rates and trends;
· customer analysis including who they are, what choice criteria they use, how they rate competitive offerings and how the market is segmented;
· distribution analysis, which covers significant movements in power bases, channel attractiveness analyses, physical distribution analyses and analysis of the role and interests of decision-makers and influences with distributor organizations.
Competitor analysis examines:
· Who are the competitors to the company (actual and potential)?
· What are their objectives and strategies, strengths and weaknesses, market shares, size and profitability?
Finally, any entry barriers that make market entry from new competitors difficult should be identified.
5. Internal Marketing Audit
The internal marketing audit focuses on the activities and performance of the company in the light of the external marketing environment:
It should cover an evaluation of the following four sections:
· Operating Results
· Strategic Issues Analysis
· Marketing Mix Effectiveness
· Marketing structure and systems
Note that the information may not be available on all of the issues listed under each topic.
This covers operating results (by product, customer, and geographic region) for sales, market share, profit margins and costs.
Strategic Issues Analysis
Strategic issues analysis will answer the following questions:
* What are our current marketing objectives?
* How do we currently segment the market?
* What is our competitive advantage (if any)?
* What are our core competencies?
* How are our products positioned in the marketplace?
* How are products placed in terms of market attractiveness and company strength (portfolio analysis)?
Each answer will be evaluated to produce strengths and weaknesses.
Marketing Mix Effectiveness
Each element of the marketing mix (product, promotion, price and place) will be evaluated in the light of the external marketing environmental analysis.
Marketing Structures and Systems
The marketing structures and systems of the company will be evaluated to identify what exists and its effectiveness. Marketing structures include marketing organization, marketing training, and intra and interdepartmental communication. Marketing systems include marketing information systems, the marketing planning system and the marketing control systems.
6. SWOT Analysis
A SWOT Analysis is a structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats. It provides a simple method of synthesizing the results of the marketing audit by summarizing the company's strengths and weaknesses as they relate to external opportunities and threats. Strengths and weaknesses will derive from the internal marketing audit analysis. Opportunities and threats will derive from the external marketing audit analysis.
7. Marketing Objectives
As a result of the marketing audit and SWOT analysis, relevant marketing objectives will be set. Two types of objectives need to be considered: strategic thrust and strategic objectives (see the next two sections).
Strategic thrust defines which products to sell in which markets. The options are existing products in existing markets (market penetration or expansion), new/related products for existing markets (product development), existing products in new/related markets (market development) and new/related products for new/related markets (entry into new markets).
Strategic objectives for products need to be set. The options are build sales and market share, hold, harvest (improve profit margins) and divest (drop or sell product).
8. Core Strategy
Core marketing strategy involves the achievement of marketing objectives through the determination of target markets, the setting of competitor targets and the creation of a competitive advantage (see the next three sections).
A choice of target market(s) has to be made. A target market is a group of consumers/organizations (segment) that the company wishes to aim its offering and communications at. It defines where the company wishes to compete.
Besides targeting consumers/organizations, the company will choose competitor targets. Weak competitors may be viewed as easy prey and resources channelled to attack them. The choice of target market may define competitor targets and be influenced by them: market segments with weak competitors may be attractive targets.
A competitive advantage is a clear performance differential over competitors on factors that are important to target consumers/organizations. This provides the basis of how the company competes. Major success is dependent on the company creating a competitive advantage by being better (e.g. superior quality or service), being faster at anticipating or responding to customer needs than competitors, or being closer by establishing close long-term relationships with customers.
9. Marketing Mix Decisions
By defining a target market and understanding the needs of their consumers/organizations, a marketing mix can be created to meet those needs better than the competition. Decisions have to be made regarding product, promotion, price and place.
Product decisions involve choices regarding brand names, features (that create customer benefits), quality and design, packaging, warranties, and the services that will accompany the product offering.
Promotion decisions involve choices regarding advertising, personal selling, direct and Internet marketing, sales and promotions and public relations.
Pricing decisions involve choices regarding list price, discounts, credit terms and payment periods.
Place decisions involve choices regarding the distribution channels to be used and their management, the location of outlets, methods of transportation and inventory levels to be held.
Physical evidence decisions involve choices for service organizations where production and consumption take place simultaneously. These include layout, décor, efficiency, staff dress.
Process decisions involve the ease of purchase/after sales for customers and efficiencies in the supply chain. These can form a natural sub set of Place.
People decisions involve recruitment, training, motivation and monitoring of people (staff) so that they can implement the other 6 “Ps” of the Marketing Mix.
Every plan needs a budget which must be set according to the objectives of the plan, the resources of the organization and the level of ROI required.
11. Organization and Implementation
A marketing plan needs a marketing organization to implement it. Reorganization may mean the establishment of new marketing structures (e.g. brand management) or the creation of a marketing department for the first time.
Consideration should also be given to implementation issues. These focus on who is responsible for various activities, how the strategy should be carried out, where things will happen, and when action will take place.
The aim of control systems is to evaluate the results of the marketing plan so that corrective action can be taken if performance does not match objectives.