Strategic Marketing Plan For Ibm Marketing Essay

IBM is a well known multinational Computer Technology and Information Technology consulting corporation. IBM represents International Business Machines. It is also known as ‘Big Blue’ as it is its official corporate color. The company started its operations from 19th century. Presently, it is headquartered in Armonk (New York), United States as a fourth major Technology Company all over the world (About IBM 2010). The company manufactures and markets computer hardware’s and software’s along with several other services related with infrastructure, hosting and consulting in the domains deviating from mainframe computers to nanotechnology.

IBM was originated in the period from 1880-1924. At the outset, the firm was recognized as ‘Tabulating Machine Company’ and later on it was known as IBM. The company has attained its success by following core values like commitment towards the success of every client, prominence on innovation from company and world’s perspective and evolution of trust and personal obligation in entire relationships (About IBM 2010). The company operates through different service segments all over the world. The most significant segments of the company are as follows:

Global Technology Services Segment

Global Business Services Segment

Software Segment

Systems and Technology Segment

Global Financing Segment (International Business Machines Corp 2009).

The company has attained its success with its large number of employees that involves experts like scientists, advisors, technologists and marketing professionals. The company serves number of small, medium and large businesses (Strategic Management 2009).

Strategic Marketing Objective and Strategic Marketing Plan

On the basis of SWOT analysis of the IBM, it can be said that the company is operating effectively but still it requires adopting various effective measures for attaining and maintaining long-term growth. With SWOT analysis it is identified that in coming future the company may have various opportunities like the overall advancements in the US economy, enhanced economic advancements in countries like Japan, China and India, technological advancements etc. All these opportunities can be easily capitalized by IBM through the development of novel strategic marketing objectives.

Strategic Marketing Objective

For taking advantage of all the existing domestic and international market opportunities, IBM’s new strategic marketing objective that can be followed is as follows:

“Concentrate on the development of innovative and highly developed technologies and services along with the expansion in rising countries like China, Russia, India and Brazil.”

Strategic Marketing Plan for attaining Strategic Marketing Objective

For attaining the above discussed strategic marketing objective, it is essential that the company adopts a well-designed strategic marketing plan that includes various steps and analysis. Strategic marketing plan provides a framework through which the company can easily attain its strategic marketing objective (Peter & Donnelly 2002). Subsequent are the various stages of company’s strategic marketing plan through which it can easily attain its above articulated strategic objective:

Situation Analysis:

In present time, IBM is one of leading brand in information technology industry. The company serves its customers in concern to almost all aspects related with technology like gadget and software. The company is the most prominent supplier of IT services, rental & financing and hardware (Strategic Business analysis of IBM 2009). The company is operating in more than 170 countries with its diverse business segments serving the different needs of different customers.

Nowadays, it is operating as a well known IT giant that is expanding its services and customer bases by evolving expansions in developing countries. The company believes in the innovation and development of most sophisticated information technologies involving various software, systems and services (Strategic Management 2009). The company’s clients belong to various small, medium and large size business enterprises including associations like government, defence, science and educational.

This analysis of company’s present position can be effectively used by the company for attaining its strategic objective of concentrating on the evolution of development and sophisticated technologies along with its expansion in developing countries of the world (Peter & Donnelly 2002). In addition to the analysis of present position of the company subsequent are the various other aspects of its business operations that can assist the management in undertaking an effective situation analysis:

Market Characteristics: IT industry in which, IBM operates is one of the leading industries in present. The market is full of innovations and high-tech advancements in the form of software, hardware and services. The market is also confronting intense competition as more and more players are serving with advanced services to their clients (Strategic Management 2009). Additionally, the business operations of IT firms are highly influenced by the political, legal, social and economic factors.

Key Success Factors: The key success factors through which the company can easily attain its novel strategic marketing objective are its image or brand, strong global presence, technological innovations, creative services, well built organizational culture etc (Peter & Donnelly 2002). By making use of all these key success factors the company can easily develop processes through which it can expand its operations in developing countries.

Competition and Product Evaluations: The IT industry in which, IBM operates is confronting severe competition as it is the most competitive industry in present time. IBM also has several competitors like Accenture, Microsoft and Hewlett Packard. All these competitors of IBM are also offering advanced services and facilities to their clients that make the competition more strong in the industry (Strategic Business analysis of IBM 2009). Every player of the industry is trying to evolve on some sophisticated service or strategy and as is making efforts towards optimizing on the weaknesses of each competitors.

Technology Considerations: IBM significantly invests in R&D and this investment of the company distinguishes it from its substantial competitors. All of its technological investments are concentrated on attaining high-growth chances. The company also has various best technologies that are registered with it and assist it in evolving revolutionary alterations throughout its business functions and procedures.

Legal Environment: All significant governmental policies and regulations make a vital affect on the operations and processes of IBM. The policies made by the government in concern to industry operations also influence the company processes. The US is the world-wide planner of information technology and due to this the development of the industry specially devolves on the programs and plans of action of the administration (Strategic Management 2009). The rules and regulations made by the government affects the investment done by country government and if an organization does not follows the prescribed legal system will not become able to take advantage of governmental plans related with industry and its players.

Social Environment: The social environment in regard to the IT industry is also developing day by day as in present every consumer beliefs related with advancements and technology are getting altered. The IBM is also operating in a developing social environment in which tastes and preferences of customers regarding advanced services is increasing that can be effectively used by the company to increase its service and customer base (Strategic Business analysis of IBM 2009).

In addition to the above discussed aspects the company problems and opportunities identification is also essential for developing a strategic marketing plan. With the discussion of different aspects of the company, it can be said that in present the company is confronted with various opportunities like with its key success factors it can easily focus on the development of highly developed technologies and services and growing countries such as China, Russia, India and Brazil. The company can also deliberately authorize its installations and technologies that extradite splendid long-term enlargement and opportunities for success.

In despite of above discussed opportunities the company is also presented with various problems and challenges that need to be resolved for taking advantage of existing opportunities and expanding in developing countries. One of the major problems faced by company is of growing competition at domestic as well as at international level. Competitors like Microsoft, Cisco, Amazon and Yahoo is rendering the company with critical competition by presenting sophisticated IT products and services. For dealing in an environment of global competition, it has become essential for IBM to invest in an exciting and budding information technology development.

Marketing Objectives:

With the help of above discussed strategic marketing objective, the company wants to attain following objectives:

The company should become able in developing more and more sophisticated technologies and services for enabling their clients in their diverse business activities.

The company should be able to develop a more synergistic product portfolio (Peter & Donnelly 2002).

The company is required to understand the need of clients from developing countries and serve them in an effective and efficient manner (Strategic Business analysis of IBM 2009).

The company is required to attain a substantial percentage of target market of developing countries like India, China and Brazil.

Marketing Strategies:

For attaining the above discussed strategic objective it is essential that the company follows appropriate strategies’ in terms of price, promotion, product, distribution and marketing. For enlarging its product portfolio and increasing its presence in developing nations it is vital that they are presented with easy technologies and services at rational prices so that they can make use of them in their business enterprises without any considerations related with cost and benefits (Baker & Hart 2007). In addition to this, it is also essential that the company adopts an appropriate positioning, distribution and marketing strategy as without this it will not be able for the company to expand its services and technologies in other foreign countries.

With the help of detailed situation analysis, establishing substantial marketing objectives and marketing strategies, it will become easy for the IBM to carry out the articulated strategic marketing objective.

Core Strategy

The core strategy of a firm assists it in identifying its key purpose and getting everyone integrated so that they can efficaciously support in attaining the purpose. The core strategy provides a framework through which organizations can easily accomplish their goals with the help of different tactics and processes (Baker & Hart 2007). Similar is the situation with IBM, for attaining its new articulated strategic marketing objective, it is essential that the company follows its processes on the basis of a core strategy.

The core strategy will explicate the new strategic objective of the company to all its employees and associates that in turn will help them in understanding their role. The core strategy will compel all its employees and managers to concentrate in the direction of new developed strategic marketing objective (Kotler 2002). With the formation of core strategy, everyone will get clear about their roles, purpose and directions they have to follow.

The core strategy through which IBM can vitally attain its strategic marketing objective is to “invest heavily in the development of high quality and advanced technologies along with the adoption of different tactics related with market expansion.”

With the help of this strategy it will become easy for the firm to work in the direction of its new strategic objective of development of innovative and highly developed technologies and services along with the expansion in rising countries like China, Russia, India and Brazil. By investing heavily in the development of high quality and advanced technologies will render the company with an opportunity to develop more and more sophisticated products. These advanced products and technologies will help the company in creating a competitive advantage along with the sustainability in present competitive environment.

This strategy is also appropriate in terms of company’s resources and capabilities. The company is doing well in the industry and it is having efficient resources and capabilities in terms of finance, infrastructure, human resources, and technology development, procurement, inbound & outbound logistic, operations etc. The company is having a well-built infrastructure and practices that assist it in projecting its all business procedures throughout its business and IT systems.

In addition to effective infrastructure, the company is also have well-trained human resources that helps in eradicating repetitions and overhead schemes. The company has maintained a positive culture in which employees from diverse background are working for driving increase in their productivity. This well-developed infrastructure and human resources will significantly help the company in working towards its core strategy of developing advanced technologies and market expansion.

Furthermore, the company is also having a good financial position that is essential for investing heavily in the development of advanced technologies and products and expanding in other markets. The company’s present practices of technology development will also be helpful for the company in the direction of its new strategic marketing objective and core strategy as these are quite competent in comparison to its competitors. The company is having some best technologies registered with it that will effectively help the management in the follow up of its core strategy towards attaining new strategic marketing objective.

Competitive Market Positioning Strategy

Competitive positioning is related with the determination of a process or method through which a firm will differentiate its offering and will craft value for its market. It can be pertained to creating a differentiation in the competitive environment and concentrating on to deliver the selected core strategy (Wilson & Gilligan 2005). By defining competitive positioning strategy, it will also become easy for the IBM to accomplish its new strategic marketing objective with the help of developed core strategy. It will assist the company in defining its target market and marketing mix along with along with the contingency plan for responding to the move of competitors (Lancaster & Reynolds 2005).

By developing a competitive positioning strategy, it will become easy for the company and its management to work upon in the direction of attaining its newly developed strategic marketing objective (Kotler 2002). The competitive market positioning strategy will aid the company managers in describing its following business related aspects:

Target Market:

With its new strategic marketing objective, the company can successfully serve most of the medium to large corporations from different business fields. With its advanced technologies and services the company can easily attract more and more firms with server and mainframe hardware, system and productivity software, associated hardware products and IT services. With its reasonable advanced services the company can easily expand in developing countries by attracting small and medium size firms (Stahl & Grigsby 1997). It can provides services to most of the sectors of a nation as in present everyone wants to run its business through advanced IT services and technologies.

Marketing Mix Strategy:

For attaining the above discussed strategic marketing objective it is essential to develop a full marketing mix strategy as this can facilitate in delivering product or offerings to target market and target customers (Kurtz, MacKenzie & Snow 2009). Till now, the marketing mix strategy of IBM has assisted it in all its operations and now this will also facilitate it in attaining its new strategic marketing objective. For the development of high-tech technologies and services along with expansion in developing countries, it is essential that the company make use of all elements of marketing mix in the following manner:

Product: This constituent of marketing mix defines the product or service that the firm will sell in the developed and developing countries. For the accomplishment of new strategic marketing objective, the company management evidences that they will offer its customers with the most advanced and high-class technologies and services that all small, medium and large size firms can use for making their operations more effective (Stahl & Grigsby 1997). The company will serve its customers with services that will be well-designed and quality oriented according to their specific needs.

Price: Price of a product or service is determined with the help of factors like costs incurred, profits necessitated, customer prospects and competitors. This is the most critical factor of a company’s marketing mix and need to be managed appropriately (Kotler 2002). By delivering services and advanced technologies at rational prices can easily attract businesses of developing countries like India, China and Brazil. Manufacturers from these countries give prominent consideration to the price so it is essential that the company determines a prudent pricing for its offerings.

Place: This element of company’s marketing mix pertains to the place through which the offerings of the company will become available to its customers. The determination regarding place will help the company in managing its planning and distribution channel (Dess, Lumpkin, Dess & Eisner 2009). For expanding in developing countries effectively, the management of this element is most essential. Until or unless it is not managed appropriately, it will not be possible for the company to serve in developing countries like it serves in developed nation. With the help of this element, the company can effectively plan the channels through which it can deliver its advanced offerings to its new customers.

Promotion: Subsequent to the determination of product, price and place it is essential for the company to consider the promotion of its offerings as without this it is not possible to appeal customers. Nowadays promotion strategies and tactics has become a critical way to attract customers (Kotler 2002). IBM also need to make use of different promotion strategies’ like direct marketing, personnel selling, advertising, use of different media channels and campaigning for attracting customers in developing nations.

With the help of these four elements of marketing mix, the company can easily work upon the attainment of its core strategy of expansion and development of advanced products and services (Ryall & Craig 2003).

Competitor Response to Positioning & Contingency Plan:

After developing a competitive positioning strategy, it is apparent that the firm will also receive response from its competitors as they may also decrease their price to attain market share or they may also adopt some changes in their offerings or distribution & promotion strategies (Proctor 2000). For dealing with the positioning done by IBM, its competitors can adopt several changes and reactive moves towards it so it essential to have a contingency plan as this will help in dealing with the responses of competitors.

The company can easily develop a contingency plan for its competitors’ response by following subsequent aspects:

Establishing Monitoring Procedures: These procedures will assist in monitoring the responses of competitors.

Consideration of Own Procedures: This will help the company in distinguishing its own procedures in comparison to competitors.

Determine Alternative Plans of Action: In the end, the company need to decide upon the alternative plans that it can used to respond to its competitors move so that its positioning can be strengthened (Kurtz, MacKenzie & Snow 2009).

Implementation Plan

Implementation of the selected marketing strategy is not as easy as it appears. It involves consideration of diverse aspects. Successful implementation of a marketing strategy is vital as it is the only factor that contributes to the sustainable success in the long run (Kotler & Armstrong 2010). Implementation of selected core strategy for IBM can be done effectively with the help of following steps:

Establish an implementation team of product development & marketing professionals: For implementation of the selected strategy, it is essential that the company establish a team comprising professionals from product development and marketing department (Saloner, Shepard & Podolny 2009). These professionals will facilitate the process of implementation by making different plans and programs.

Development of advanced technologies and marketing tactics for expansion: The professionals will determine the various strategies through which the company can improve its product development processes and marketing approach towards expansion (Bennett & Blythe 2002). These strategies will assist the company in the attainment of its core strategy and strategic marketing objective.

Determine the process of implementation: Subsequent to the determination of strategies that can be adopted the implementation team need to decide the stages in their processes where they need to adopt changes like marketing department has to adopt different strategies for promoting and marketing company’s offerings or product development staff has to adopt some new processes and technologies.

Determine the time of Implementation: After making determination regarding implementation team, strategies and stages there is a need to decide a time when new strategy can be implemented (Kaynak 2002). The company team should implement their new strategy when it is totally sure that its strategy is right can direct it towards its strategic marketing objective.

Potential Barriers to Implementation:

The process of implementation followed by the company for implementing its new strategy is also affected with several potential barriers. Whenever an organization implements some new strategies it confronts several internal and external environmental barriers. IBM can also confront some potential barriers like resistance from its employees and associated towards new product development strategy and market expansion (Czinkota, Ronkainen & Tarrant 1996). Resistance from employees towards adopting change is the most significant barrier for implementation process and need to be managed appropriately by making them aware with the benefits their organization and they can attain (Kotler & Armstrong 2010).

In addition to the barriers from internal environment, the organization may also face barriers from its external environment that changes at rapid speed nowadays. These changes in the external environment are driven by technology, taste of customers, styles, drifts, and media influences etc (Sandhusen 2008). For effective implementation it is essential that these factors are considered thoroughly in regard to present and future environment so that they cannot make any significant affect on the process of implementation. By considering external and internal environmental factors the company can successfully implement its new strategy.

Supporting Work with Wider Reading and Academic Research

With the help of this discussion of IBM and its new strategic marketing objective, it can be said that an organization can easily attain its new strategic marketing objective through following an appropriate marketing process. With the help of a marketing process, it becomes easy for a firm to identify the unfulfilled needs of customers and develop products that satisfy specific needs of customers (Sandhusen 2008). From the identification to fulfilment of customer needs can be completed effectively if the firm follows an appropriate marketing process (Kotler & Armstrong 2010).

This process and its steps assist the firm in fulfilling the needs of their present and potential customers. IBM also followed the process of marketing and due to this it can be said that the company can effectively implement its new marketing strategy and can serve its customers with more advanced and high-tech products and services (Czinkota, Ronkainen & Tarrant 1996). In addition to this it can also easily expand its market with its new products and services in developing countries.

The stage of situation analysis serves the firm with a basis to discover the opportunities and unfulfilled needs of customers. It also facilitates the firm in the identification of its own skills and capabilities towards discovered opportunities. The next step of the marketing process that is marketing strategy serves with a strategic plan through which the company can easily pursue towards opportunities identified (Kaynak 2002). The marketing mix decisions facilitate the firm with appropriate measure to present their offerings. Implementation stage of the process helps the firm in implementing its marketing plan and launching its new offerings in existing and new markets (Lancaster & Reynolds 2005).