Part II
On the basis of SOSTAC strategic tool proposed by Smith and Taylor (2004); and Smith and Zook (2011) propose the use of SOSTAC, the first three concepts of situation analysis, objectives, and strategy had been tacked with respect to Updata Infrastructure. The following is the second part of the analysis, which involves the tactics, actions, and control as illustrated in Fig. 1. The analysis in respect to the tactics, actions, and control provide a better understanding of Updata Infrastructure UK and how it can effectively achieve a good market position within the UK telecommunications market.
Figure 1: SOSTAC Structure Framework
Tactics
Tactics analysis within the business market includes the understanding of the 5Ps, which are product, promotion, price, place, and people. These aspects are sometimes referred to as the marketing (mix Katz & Green, 2011). Every business organization needs to identify the right proportion within the marketing mix, which will enhance its market position as well as performance. Updata Infrastructure needs to identify and understand its products, promotion, price, place, and people in a bid to achieve the objectives identified in the first part. In addition, Updata Infrastructure needs to identify the right mix in the market. The following are the five main aspects of tactics for Updata.
Products
Updata Infrastructure deals on various telecommunications products. The products include voice, data, and IP services (Updata.net, 2013). Moreover, it is important to note that Updata offers a variety of voice, data, and IP services products in a bid to meet the varying demands of the consumers. Examples of specific products that Updata manufactures, markets, and distributes include fibre Ethernet, internet security, MPLS VPN, internet access, EFM, Updata voice, net generation access, and cloud connect as well as LAN services amongst many others (Updata.net, 2013). These are products that revolve around voice, data, and IP services. In order to capture a bigger market, Updata needs to develop a variety of products. In addition, there is need to employ the latest technology within the market whilst developing such products. This will ensure that the products are not regarded as obsolete by the customers hence they (customers) can easily purchase them in order to satisfy their needs.
Price
The second component that Updata needs to analyze is the prices of different products. Price is an important factor that customers consider especially when making the buying decisions. There are different pricing strategies that an organization can employ in order to attract numerous customers whilst retaining the already existing ones (Kotler & Armstrong, 2009). In other words, Updata needs to identify the best pricing strategy that would increase the customer base through attracting new customers and increasing the loyalty of the already existing customers. Examples of pricing strategies that Updata can employ within the UK telecommunications market are cost-based, customer-based, and competitor-based pricing. Identifying the right pricing strategies depend on the main objective and target of the organization in addition to other factors that include quality, intention or objective, and market share as illustrated in Fig. 2 and Fig 3.
In the figures below, it is evident that the quality of the product, the intention of the organization, and the market share will influence the pricing strategy. For instance, in Fig. 2 Updata will use low prices when the quality is low and the intention is to provide basic products to a given group of consumers (Kotler & Armstrong, 2009). On the other hand, Updata will use low pricing when the quality of products is high in a bid to penetrate the market.
Figure 2: Pricing strategy considering quality and objective
The market share commanded and demanded will also define the correct pricing strategy to be employed by Updata as illustrated in Fig. 3. The higher the market shares the higher the price especially if that is the intention of the organization (Kotler & Armstrong, 2009).
Figure 3: Pricing strategy considering Market share
Promotion
After product and pricing the other fundamental concept is promotion. Basically, promotion refers to the act of an organization or a firm to engage in specific activities that will create awareness of the existence of their products. Promotion and advertising are fundamental aspects within business operations. Through promotion and advertising, business enterprises are able to reach out to the consumers and inform them of the existing products whilst at the same time convincing them (consumers) to use such products.
There are numerous avenues or media through which Updata can use to promote or advertise their products. Updata can employ the use of print, audio, and visual media such as newspapers, radio programs, and television products to advertise their products. On the other hand, Updata could use the internet as a medium for promoting its products. Nevertheless, there is a need to understand that every media employed in reaching out to the consumers should target the right persons as well as use the right message. For instance, whilst targeting the old, it would be difficult to employ printed media. On the other hand, targeting the youth should employ either visual or the use of the internet.
Place
Place is an important aspect within business operations. Business enterprises enhance the quality and utility of a product through ensuring that the product moves from the production to the consumption. It would be meaningless if Updata will manufacture or develop data, voice, and IP services and keep them within the company. Place within the marketing mix or the tactical aspects of the STOTAC strategic tool requires that products developed at taken to the right place and the right place. By ensuring that its products are at the right place and in the right time, Updata will be enhancing the utility of its products hence increasing customer satisfaction. As a result, Updata will be able to accomplish all the targets and objectives with respect to marketing.
In order to achieve this, Updata needs to have various distributional points as well as channels. Distribution channels are usually important or fundamental in ensuring that the products are at the right time and place. Therefore, Updata should increase its distribution network and channels, which will be used in ensuring that the developed products are at the right place and at the right time.
People
According to Powell (2011), customers are the epicenters or engines that drive the performance and operations of business enterprises. It is the customers that dictate what a business enterprise will produce or develop. Updata needs to identify the customers and all the stakeholders within the operations of the firm. According to the firm’s websites, the clients or customers that buy products from Updata include the 80% internet user and 40% mobile phone users who access the internet through such devices (Keynote.co.uk, 2013; Ofcom.org.uk, 2013; and Marketresearch.com, 2013). Specifically, Updata currently serves local governments, business organizations, health care service providers, and educational sector (Ofcom.org.uk, 2013). It is important for Updata to understand the needs, wants, and demands of all these people in a bid to develop high quality products.
Other than the clients or customers that Updata serves through its products, there is a need for the organization to consider all the other stakeholders. The stakeholders in this case include the employees of the organization and the environment (Marketresearch.com, 2013). The actions or activities of Updata should not contravene the requirements of the environment and the employees. Besides, there is a need for Updata to care for the employees in a bid to enhance productivity. Corporate social responsibility will be a good strategy for Updata to show that they care about the community at large. Notably, corporate social responsibilities are also used to enhance the image of the organization. Therefore, Updata will employ CSR to show responsiveness as well as enhance the corporate image of the organization.
Actions
Action is another strategically fundamental concept in business operations. With respect to actions, there are two main concepts; specifications of the actions and the implementation process. The following discussions provide a deeper understanding of the various specifications as well as the implementation of the actions in a bid to achieving the set or target goals.
Specifications
Specifications include the tasks, resources, budget, staff, and the partnering or outsourcing concepts for Updata. The following are the specifications that Updata needs to be involved in with the intention of reaching out to the target group:
- Tasks: Different tasks need to be performed within Updata in a bid to enhance its position in the market as well as enhance the performance. Some of the tasks include:
- Updata should conduct serious market research in a bid to collect adequate information in respect to the market
- Increasing the distribution channels and stores
- There is a need to extend the operations of the firm beyond the United Kingdom owing to the fact that globalization has various opportunities
- Updata requires to activate or enhance the research and development department
- Updata needs to extend its services to individuals other concentrating on the business enterprises and other forms of organizations
- Customer satisfaction survey should be conducted in a bid to identify the level of customer satisfaction with the firm’s products.
- Resources: In order to achieve the above tasks, Updata requires specific resources. Such resources include
- Adequate funding towards the market research
- Necessary resources in conducting the market research such as time
- Funds for globalization
- Legal requirements for achieving globalization
- Improved technologies to be incorporated within the R&D
- Staff: Other than the aforementioned resources, Updata requires human resources. Human resources are required in conducting and analyzing the market research as well as staff members that will be deployed within the R&D department to increase the quality of products. Updata will also require staff members within its subsidiaries, distribution channels and centres, as well as the expanded offices across the globe.
- Budget: There is need to have a budget in respect of the above marketing tasks. The accounting and finance department needs to allocate funds to the marketing and sales department to enable the latter to successfully achieve the objectives of marketing research.
- Partnering and Outsourcing: In scenarios and circumstances where Updata is not in a position to provide either services or resources, there is a need to encourage partnering and outsourcing. Partnering and outsourcing will save time and ensure high quality.
Implementation
Other than the specifications of the tasks that need to be performed within Updata in line with this marketing plan, it is important to note that there are specific activities that need to be conducted especially during the implementation of the plan. Some of the tasks or activities during implementation include:
- Risk assessments: Updata needs to assess possible risks within the organization as well as outside the firm in relation to implementing the marketing plan. The risk assessment will help in identification of the possible risks hence coming up with possible mitigations.
- Legal issues: There is a need for Updata to ensure that every aspect complies with both environmental and legal requirements. Every organization or business enterprise operates in an environment regulated by specific rules and regulations. Such aspects need to be considered whilst implementing the marketing plan.
- Team organization and responsibilities: In order for the marketing plan to be effective, there is a need for Updata to develop specific teams and delegate responsibilities. Teamwork is an important idea in accomplishing a huge task such as the implementation of a marketing plan. Some of the teams that need to be formed include researchers, analysts, and actual implements. These teams will make the implementation of the marketing plan very cheaper, faster, and easier.
- Development and maintenance process: Updata needs to ensure that there are both development and maintenance processes within the implementation. Both development and maintenance will ensure that all the activities intended are effectively performed. In addition, the two processes will be in-charge of making sure that any issue that arises after the implementation is effectively handled to enhancing the objectives of the marketing plan.
Control
This is the last aspect of the SOSTAC strategic management tool towards understanding the operations of a given firm such as Updata. The controls are important within organizations since they ensure that only the intended aspects of the marketing plan are implemented. In addition, controls assist in evaluating the effectiveness of the marketing plan. The following are some of the activities that Updata should perform with respect to controls:
- Updata needs to use specific measurement processes as well as metrics that include sales, turn over, profitability, and other financial ratios such as margin and gross profits. These measurements and metrics will be relevant in understanding the effectiveness of the marketing plan.
- Updata should use the idea of business contribution from the revenue, costs, and return on investment in order to assess not only the viability but also the effectiveness of the marketing plan in question.
- Updata needs to use channel satisfaction, sales, and conversion rates in order to identify and evaluate the effectiveness of the marketing process
- Lastly, Updata needs to identify and evaluate the effectiveness of online marketing through repeat visitors, impressions, and feedback obtained from the clients.
Conclusion
Based on the above discussions, it is evident that SOSTAC is a useful strategic management tool, which effectively assists in understanding the situation of a given organization in various dimensions. Through SOSTAC it is possible for a business enterprise to understand specific objectives, strategies, tactics, actions, and controls, which make the marketing plan not only effective but also very successful.
Reflective Journal
Evidently, it is an interesting task to draft a marketing plan. Different aspects contribute make the process interesting. One of the aspects is extensive research especially across books, journal articles, and other reports. Even though the marketing plan developed above belongs to a small organization, adequate knowledge and skills towards establishing a marketing plan have already been acquired. As a result, I can now draft a marketing plan for a bigger organization.
Nevertheless, I have to confirm that I experienced various challenges whilst developing the marketing plan. One of the challenges experienced during the drafting of the marketing plan was obtaining information and relevant data. Updata is a small organization will very little information and data across the internet. Therefore, developing its marketing plan proved to be very challenging especially in respect to the relevant data and information.
Apart from the challenge of obtaining information and data, I also faced challenges in selecting the right firm. The global arena has numerous firms whose marketing plans could be developed. However, selecting an interesting firm is one of the most difficult aspects of this process. Nonetheless, the use of SOSTAC strategic management tool in creating the marketing plan made the whole process easier and very interesting besides equipping me with the required knowledge and skills in creating marketing plans.
References List
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Kotler, P., & Armstrong, G., 2009. Principles of marketing. Upper Saddle River, NJ: Pearson Education.
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