Entrepreneurial Marketing Management in Service Sector

Introduction

The service industry is robust with opportunities. Marketing services are so in demand and thousands of companies are investing thousands of dollars in marketing as they struggle to market their products and services. However, effective marketing has become unavailable since many marketers today, fail to provide comprehensive and effective solutions to lay strong foundations for products and services upon introducing them to markets. Providing effective marketing solutions to clients can go a long way to create great business opportunities for not only the marketing services firm, but also, the customers who, in the event of successful marketing, secure sales, a market-share, and long-term clients, will have to expand. Their expansion will mean creation of job opportunities and growth of industries as well as economies.

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The marketing sector is classified as a service industry enterprise. Service industry is sustainable and secure due to various aspects of the market. Services refer to tailor made solutions to consumer needs. Marketing services is a very essential service, especially from a corporate perspective. When approached from the diversified viewpoint of the overall players involved, marketing services solution encompasses adverting, brand positioning, and market empowerment. These aspects of the marketing services makes the final product to be a solid solution for the consumer needs wherein, the marketing services allow the advertiser to establish a relationship with the consumers of his/her products/services. As such, the principal objective this marketing services company is to establish a direct relationship between the market and the advertiser, whereby, the consumer is introduced to a product through various methodologies and subsequently directed to this products outlet to make purchases. On the other hand, the services will ensure the advertiser/seller is well trained to handle and establish a relationship with these buyers so that, their relationship can be mutual, sustainable and long-term. As such, the marketing services company plays the vital role of establishing relationships between consumers and sellers and empowering them with a wealth of ideas to help them sustain this relationship.

This service is offered for a fee, which covers the cost of market research, advertising, and the after marketing incentives that will ensure consumer retention and growth of a market-share for the client. This product is unique, efficient, and quality. A seamless solution is tailored to suit companies in the service and product sector. The objective is to provide the marketing sector a new meaning through effective marketing and after-marketing advisory to help companies sustain consumers and establish themselves as industry players.

The viability of the product

The demand for effective marketing is so high nowadays that, incentives that provide solid solutions to marketing problems are hot products across the marketing industry. The viability of a product is based on various aspects of the target market. This product is tailored to suit the target markets which are corporations, mid-sized firms, and other business organizations in need of effective marketing. The product was created after a comprehensive market analysis achieved through market research and collective data analysis as advised by Russell (2004).

The product is a service; hence, the overall profile is a ‘service provision’ platform. Companies (our target markets/consumers) will source our marketing services. This service involves market research to identify the core aspects of a potential market. As such, the client (advertiser/our customer), will have to provide a product profile which we will review and then conduct a market survey to ascertain which is the ideal market for the product. The data mined from such a process/task will be analyzed to provide comprehensive detail about consumer behavior, competition, consumer trends, and overall demographical data. This information will be analyzed and mounded into medium-term plan through which the marketing of the product will be based on. We will create a strategy to market the particular product/service in the particular market. The strategy will have two parts, the advertising campaign aspect, and the brand positioning aspect. The advertising aspect encompasses the aggressive marketing campaign through which consumer awareness will be nurtured and natured to create a ‘following effect.’ Subsequently, Brand positioning will encompass placing the name of the company as an important aspect of this market and its environs. This means, rather than marketing the product, we will market the company so that the market/consumer will establish a relationship with the advertiser/seller. This aspect of marketing is very vital in creating consumer retention and subsequent long-term future relationship between the two.

In continuum, this aspect of our services will ensure that our clients are ensured of successful marketing and a solid market that will allow expansion and growth of the company in such a market. The product profile is however segmented to suit the clientele. Since consumers are multifaceted, the need for a variety is very essential. We have segmented the product into three, which are; prestige service for high spending consumers, a premier marketing package, and ordinary marketing service. Each package has a price and various features.

Capital

After assessment of the opportunity, demographics and consumer needs, the firm requires minimal capital to start up. The budget below details how much the entire venture will consume in terms of revenue during the implementation period. The budget only reflects the maximum expenditure that can be accrued.

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Equipment/facility Quantity Unit Price Total
Office and office furniture 1 (includes refurbishing) $3000 $3000
Computers
Support infrastructure
Business process applications
3 state of the art computers
Internet
Telephones
Software
IT Support system
$6000 $6000
Website, hosting and domain $1000 $1000 $1000
  • The total budget is $10000
  • We will charge upfront fees and deposits to start projects
  • The deposits will help cut cost of operations

Raising capital

Since this is a start-up and the capital required negligible to serious fiscal funding, there are two options available for this. Borrowing from a lender is the first option. Though this option sounds very appealing, borrowing and interest rates might have serious implications as the firm makes its initial baby steps of progress. The borrowing has to be domestic whereby the lender is not an interest-based lending service, rather a funding service/person. The reason why this approach is ideal is because, the start-up requires time to develop and gradually become profitable A loan cannot be pended since it has to repaid according to the loans terms and conditions as well as the agreement between the lender and the borrower. A loans interest rates might have a negative implication on the business since the profits made might be negligible to meet the actual loan repayment. As such, this product (firm) requires a flexible loan that allows the growth and development of its structure and customer base so that profits can accumulate and allow the firm to break even then start sorting out liabilities.

The second option is identifying a strategic partner and selling him equity. Many investors are short of newer investment avenues and investing in such an idea would be a great diversification of the investment portfolio. By selling the investor equity, the firm agrees in principal to part with a certain percentage of the net earnings with the investor for a set period of time, (i.e.) 5years. In return, this investor funds the start-up fully. This is a flexible and more rational approach to funding. However, it will take a great deal of confidence and sealing all possible loophole sin the business plan to make the investor certain that the product will sell and that the return on his investment is guaranteed and an achievable objective. Upon securing funding and acquiring the necessary office facility, the company will begin rolling out. The rolling out will involve first equipping the firm with relevant facilities and applications as well as advertising and marketing the products across the target markets.

How the firm will target the market

The marketing strategy is based on quality as insulation against consumer dissonance. Two aspect of the marketing strategy will ensure successful tapping of the market. One aspect is our position as a unique solution to marketing of products and services. To achieve that position, we will first embark on an aggressive campaign of establishing a relationship as a firm with our customers as our partners. We will use brand-positioning techniques to achieve a high level of command across the market as a very apt, unique, and effective solution to marketing. The relationship between our company and the customer will be the solid foundation of our core business process viability. Our aim is to be a solution to a problem, not a product. The point is, if we brand our profile as a product, we will be just a new product/service in the market, and consumers will have a choice to choose from. However, if we position our brand as an effective solution to the entire market and as a friend who any other company can turn to for solutions we will be a seamless solution to all consumers. This aspect of our profile will endear us to all consumers and they will feel that we are a house where they can take refuge in.

The other aspect is engaging in corporate social responsibility. This is one of the most untapped marketing avenues. By establishing a relationship with the society and empowering the society fully about their rights, fair prices, quality, and being well served are vital. This approach will make consumer believe that, we are their solution to their ability to get the right products and right sellers. Advertisers will find us very vital since by advertising through us, they are assured of sales due to consumer confidence n which companies we advertise and market for.

The target and objectives

One of the most important aspects of a competent firm is the structuring of a business model. A business model defines or rather outlines the structure of the firms business process and comprehensively provides guideline on the tenets that sustain this organization in principal. A marketing services firm is a service provision organization whose core business process is serving customers who want to market their services and products. As such, this firm thrives through service provision and depends on consumer driven markets to sustain its profitability. Such businesses survive or rather compete by using quality as core competency while incentives play the role of a guardian when it comes to efficiency, cost, and consumer retention.

The business as such depends on core competencies such as quality, incentives, and consumer loyalty to make sense of its operations. According to Berry, marketing services is a concept that helps firms earns consumers though ‘favor and loyalty. This is achieved by providing services that satisfy them and selling products that meet their needs (Berry, 236-245). Today, the marketing concept is all about acquiring consumers and this connotes where many firms fail in their marketing approach.

Until recently, marketing was merely the process of forcing sales. Today, marketing is about securing consumers loyalty. This becomes top priority and developing incentives to sustain consumers becomes the central business process. However, today, many marketers are still holding true the fact that marketing is more about ‘how to attract consumers to buy products and services. However, the correct approach is that, marketing should revolve around consumer retention principals, and that, every marketer should aim at establishing a corporate relationship between the consumer and the firm.

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As such, the business model for a Marketing Services firm should aim at establishing a relationship between the consumers and the companies this firm markets. According to Wetzels, Ruyter, and Birgelen establishing relationships involves the creation of a sustainable high degree affective commitment by constantly weighing the benefits of the relationship against the cost of maintaining the relationship in a service context (Wetzels, Ruyter, and Birgelen, 406-423).

As such, regardless of nature of clientele, the marketing services firm should be committed to create a two very effective commitment to (a) its customers (b) its customer’s customers. This will ensure customers will be committed and will have a strong intention to stay in the relationship with the firm as a service provider. On the other hand, the consumer will be ready to remain steadfast in buying from a seller sine they are well related in principal (Wetzels, Ruyter, and Birgelen, 406-423).

This model will be effective, enough to keep the business sustainable, whereby, the services it primarily offers aims at helping its consumers attract, maintain, and enhance sustainable relationships with the market (consumers) (Berry, 236-245). This process explains how the consumer retention principals will be solid and that the business model will support long-term gains. Besides, developing a service on which to build consumer relationship and solidifying this relationship is very important. According to Financial Mirror (2008), this will entail advising and planning about prices, service provision, and efficiency to encourage consumer loyalty. Improving on management principals and enlightening employees about the need for such approaches when handling consumers.

In summary, the business model as defined above is to market products and services for other firms. This company will focus on identifying niche markets and existing opportunities for products and services such as beauty products, publishing opportunities, and other services. Once we identify potential markets and conducted market research comprehensively, we will approach potential customers to invest in such markets. The business process is to negotiate a fee for the market research data, the marketing campaigns we will run in the event of the client/advertiser accepting to use our services, and shaping the future of the product/service in the new market. The negotiation will focus on a fee charged for services rendered and a term-equity for subsequent sales for a certain period. While ensuring we keep part of the bargain by ensuring the campaigns allow effective marketing and market penetration. We help the firm/advertiser secure sales and that the entry secures a future for these products/services.

Communication Strategy

Every business, especially service industry firms have to use communication methodologies to conduct outreach and sensitization. Effective communication is essential in such circumstances. Our mode of communication is very advanced n terms of model and effectiveness. Modern technology allows direct marketing and we will use similar platforms to ensure such levels of competency in communication are achieved. By combining direct communication with heads of marketing and business development in companies, on the ground, we will embark on informing the society about the quality, fair price, and their responsibility to buy and use good services.

Providing free prospectus to potential customers, holding seminars for heads of marketing departments of firms, and forming partnerships in corporate social responsibility will be our main methods of communication with our clients.

Sales Forecast in the first financial year

As start-up, doing a sales forecast is very difficult since we do not have a solid sales chart to make sales forecasts. However, we have our sites set on very good times ahead of us. The prospects are great and we are upbeat that our marketing schemes will be of profound significance and business will be good. We will forecast our sales with reference to prospected customers.

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Type of sales Quantity Unit price Total
Prestige marketing services 3 per month $2500 $7500
Premier marketing services 6 per months $1750 $10500
Ordinary marketing 10 per month $1250 $12500

As such on monthly basis, the forecast shows we could be make way over $30,000 in a year’s time we could be making up to $3.6 million.

Cash Flow

Corporate Marketing Solutions Cash Flow Statement
StatementFor the Month Ended September 2010
Net income $20,000
Non-cash Expenses and Revenues $2000
Accounts Payable $4000
Purchases $1500

Staff

Personnel; the context of employees and how the organization is going to respond to the market will greatly depend on its staff in that particular market. The employee’s attitudes will determine how the firm will solidify a relationship between the consumers and the firm; hence develop an uptake of the products as explained by Public Innovators (2010).

Our staff is lean, approximately 4 MBA and marketing honors graduates. These will be our marketing executives and customer care representatives. They will advice and consult clients and liaise with research firms when market research is required. We will pay a good salary to keep them motivated and committed.

In management, our manager will be instrumental in influencing the direction of the company. He is responsible for shaping the future of the firm’s venture in a new market. A manager with knowledge of operating a firm in a competitive industry will insulate the firm from the fear of operating in a challenging market. Paphitis (2008) explains that a strong character is indicative of focus and a desire to achieve.

Establishing Marketing Services Company

Liles (1974) points out marketing as the most important stage of an organizations business process, especially when operating in consumer driven markets. Marketing connotes driving sales and consumer retention to secure future sales and revenue streams. Effective marketing services go a long way to provide tailored solutions to organizations hoping to tap into markets and expansion of market-share. A marketing services company/firm stands in good stead in tapping on such opportunities as effective marketing for businesses and organizations. However, various factors need such as macroeconomics, demographics, business model, and applications support the service provision platform.

While understanding core-marketing principals is almost a tenet to guide any investor tapping on marketing services, defining marketing is vital before embarking on the outlay process. Marketing is the process of compelling consumers to take up the firms output. A broadened marketing concept is required to explain the context of marketing comprehensively when modeling a marketing services firm. Marketing, from a broader perspective is the practice of creating relationships between brands and consumers. Brands in context denotes range of products and services which we can cluster singularly as ‘a firms output.’

As such, a marketing service provides relational marketing in principal. Conversely, relationship marketing is a marketing practice that aims to establish an impetus of cross-sectional understanding of firms and consumers, where consumers rather identify with the firms than with the product in principal. Maria (2008) argues that the impetus for relationship marketing development is a progeny of selling services and products with quality, efficiency, and process of exchange being the factors determining the relation, its outcomes, its future, and most importantly, its rationale as a core business process.

Technology plays a key role in development of today’s firms. Marketing principals paradigms have shifted and more firms are employing information technology as a key competency platform to accelerate the process of achieving both corporate gains and consumer retention. To tap on the potential benefits of the firm, IT support systems to spearhead a series of convectional market research, consumer information and trends, management support systems, and overall data mining. The principal objective of such aggressive approaches by new industry players is to achieve the maturing of services marketing with emphasis on quality, efficiency in delivery, and establishing long-term relationship between consumers and the firm as advised by Peterson & Berger (1971).

Recognition of potential benefits for the customer comes as first priority with the firm trailing second, though holding the derivates of the process as vital tenets to guide its future operations. As such extending the marketing concept to incorporate a diverse viewpoint is the emerging marketing services perspective today, and that, every investor hoping to tap into such incentive driven markets has to use it as a standpoint to target profitable consumers and retaining them, hence creating a sustainable marketing services firm. Use of business model support systems such as MS Project, which is tailored to suit such needs, is one of the strategic steps to achieving the initial rewards of effective launch and nurturing of the service firm.

Reference list

Berry, L (2010). Relationship marketing of services, growing interest, emerging perspectives. Journal of the Academy of Marketing Science (online) 23(4) (1995): Web.

Russell, D. (2004) “Concepts of entrepreneurship” Blogtext.org, Free Blog. Web.

Financial Mirror. (2008) “Theo Paphitis to help Cyprus funding needs.”. Web.

Liles, P. R. (1974) ‘who are the entrepreneurs?’ MSU Business Topics, Vol. 22, No. 1 pp. 43-55. Print.

Maria, M., (2008) “Entrepreneurship: Theory and Practice The role of government policy on entrepreneurial activity: productive, unproductive or destructive?” Business and Small Businesses. Web.

Paphitis T. (2008) Enter the Dragon. London, Orion Publishing Company. Print.

Peterson, R, A., & Berger, D. G., (1971) Entrepreneurship in Organizations: Evidence from the Popular Music Industry. Administrative Science Quarterly, 16, 1, pp. 97-106.

Public Innovators (2010). “How can government strategically support social entrepreneurship?”Web.

Wetzels, M, Ruyter K, & Marcel B (1998). Marketing service relationships: the role of commitment.” Journal of Business & Industrial Marketing 13(4) (1998. Web.

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