Business and Marketing Strategy Plan for Thought Works
It is worth noting that traditionally, marketing strategies, no matter how noble and sales-boosting they are, are underappreciated in Thought Works and its various departments. For a company that is aiming to grow and increase its share of the market, this is akin to taking a step backward. There are two ways how Thought Works can divide their target market into segments; in the case, the recommended ones were based on benefits and observable characteristics of the customers . Between the two, Thought Works should opt for the latter because it is a longer term solution to their marketing woes. Customer needs, expectations, and demands change from time to time and these are the variables where the customer benefit segmentation strategy is anchored in.
Segmentation Criteria
If the company is to choose the first option, they would have to change their marketing strategies every time a new industry trend emerges, something which may prove to be infeasible and impractical in the long run. They can, for example, segment their target market based on income level or social status (e.g. entry level, mid-range, high-end), based on interest level (e.g. casual v. enthusiast level or casual v. commercial), among others. The proposed segmentation criteria in this case would be the latter, the one that is based on interest levels. In that scenario, the company would be able to adjust the specifications as well as the price (and marketing budget allocations) of their products and services according to their target segment.
Growth Feasibility Discussions
The most appropriate answer to Stanislava’s dilemma about the growth prospects of the company would be it depends. It would depend on whether the market can respond positively to the updated marketing strategies (i.e. market segmentation). Should the market respond positively, then higher levels of growth would be a reality. It is not expected to create internal chaos among other problems unless the company starts to neglect the need for a bigger service-handling capacity as a result of the ballooning demand for its services . Moreover, internal problems should be something that people at Thought Works would not be able to handle; the benefits of a higher level of growth is too expensive a price to pay just to prevent internal conflicts between the company and its employees and its competitors.
Marketing Objectives
As in any form of objective, the marketing objectives should be data-dependent. One data that the company can use would be market share. TW must measure their market share prior to the implementation of the updated marketing initiative and then measure it again after. That way, they would be able to evaluate whether they succeeded or not.
Skill Development Discussions
Key aspects that TW should focus on would be margin rates per service, employee or team productivity (how many projects they finish per week or month), and turnover rates (how efficient they are in producing quality service). These skills or metrics are inherent in a lot of business and marketing models out there. iPhone games, for example, are dependent on marketing and user perception, social networks on the amount of time users spent on the platform, restaurants on table efficiency, online marketplaces on profit margin per sales (just like retail fashion store), gyms on occupancy rates, and business schools on enrollment rates and management consulting business on number of leads. Each business is unique; it would be an error to use a standard skill or metric for a unique business such as TW.
Business Model Valuation
Focusing on TW’s case, between the margin, investment, and working capital model, they should focus more on the margin model because that is what the most applicable model for a company that is eyeing higher levels of growth. Investment and working capital models are more applicable on real estate and manufacturing-based firms. Uber, Facebook, Hotel Chains and AirBnB, Business Schools, and iPhone application businesses are at some point dependent on the margin model as well—because they offer services to their customers at some point. For a service firm such as TW, using the metrics that were stated earlier in the skill development discussion (which are margin-related) would be more effective.
Other Things to Consider
Sales would be the role that would be most important to play in this case—because the focus is on growth. What TW wants is the maximization of sales and that can only be done through marketing. Other things to consider would include making sure that the service and working capacity of the company increases well ahead of the demand (which it surely will as marketing initiatives such as the segmentation get launched). The business potential is favorable so far as long as TW can manage to stick to its long term plan.
Bibliography
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Palmatier, R., Scheer, L., Benedict, J., & Steenkamp, E. 2007. Customer Loyalty to Whom? Managing the Benefits and Risks of Salesperson owned Loyalty. Journal of Marketing Research, 185-199.
Tybout, A. 2016. Targeting and Positioning Basics for a Services Firm. Kellogg School of Management, 01-12.
