sostac model assignment

SOSTAC® Examples: A Proven Plan for Strategic Marketing

SOSTAC® is one of the world's best strategic marketing planning frameworks, renowned for its simplicity and effectiveness. Developed by PR Smith, this linear model provides a step-by-step process for marketing teams to create effective and efficient marketing plans. It comprises six key stages, each vital in shaping a robust marketing strategy. These stages are: Situation Analysis, Objectives, Strategy, Tactics, Actions, and Control.

In a world where marketing planning often becomes complex and overwhelming, SOSTAC® stands out as an easy-to-use and comprehensive tool. This article aims to provide a detailed understanding of the SOSTAC® framework, showcasing its application in various business scenarios and emphasising its significance in strategic planning. Whether you're looking for a SOSTAC® marketing plan example or seeking to enhance your marketing strategy, this guide offers valuable insights.

Understanding SOSTAC®

Situation Analysis: This initial stage involves assessing the current environment, including strengths, weaknesses, opportunities, and threats. It lays the foundation for the entire marketing plan, clearly showing where the business stands.

Objectives: Setting clear, measurable goals is crucial. These objectives must align with business priorities, ensuring that the marketing plan supports the overall mission and vision of the organisation.

Strategy: Strategy development is about outlining the broad steps to achieve those goals. It's the roadmap that guides the marketing team, ensuring that every effort aligns with the set objectives.

Tactics: Tactics involve establishing the right marketing mix. It's about choosing the specific methods and channels that will be used to reach the target audience.

Actions: This stage is about creating a detailed action plan. It defines who will do what, when, and how, ensuring that the plan is executed smoothly.

Control: Control is about defining performance management processes. It ensures that the plan is on track, allowing for adjustments and improvements as needed.

Importance of SOSTAC® in Strategic Planning

SOSTAC® is more than just a marketing planning tool; it's a strategic asset. By providing a structured approach, it ensures alignment with business goals, efficient resource allocation, and effective execution. It takes the guesswork out of marketing planning, offering a clear path from conception to implementation.

Key Components of SOSTAC®

Each stage of SOSTAC® plays a vital role in the marketing planning process. From understanding the market landscape to implementing and controlling the plan, SOSTAC® offers a cohesive and comprehensive approach. It's not just about creating a marketing plan; it's about crafting a marketing strategy that resonates with the business's core values and objectives.

SOSTAC® in Detail

Situation Analysis: How and Why to Analyse the Current Situation

Situation analysis is the foundation of any SOSTAC® marketing plan example. It involves comprehensively examining the current market environment, including internal and external factors. Key tools in this stage include competitor analysis, PESTLE analysis, and SWOT analysis. Understanding the strengths, weaknesses, opportunities, and threats allows businesses to identify potential areas for growth and areas that may require attention. It's not just about knowing where you stand; it's about understanding how to leverage that information in your marketing planning.

Objectives: Defining Business Marketing Goals and How SOSTAC® Aids This

Objectives are the heart of a marketing plan, guiding all subsequent actions. In the SOSTAC® framework, objectives are often defined using SMART goals, ensuring they are Specific, Measurable, Achievable, Relevant, and Time-bound. Additionally, PR Smith's 5S Objectives can be used to create digital strategies, encompassing Sell, Serve, Speak, Sizzle, and Save Goals. By aligning marketing objectives with overarching business goals, SOSTAC® ensures that the marketing strategy is focused and contributes directly to the company's success.

Strategy: Discussion on Strategic Development and Implementation with SOSTAC®

Strategy development is where the SOSTAC® marketing plan starts to take shape. It involves defining the broad steps to achieve the set objectives, including Segmentation, Targeting, and Positioning (STP). This stage is about channel selection, deciding how to reach the target audience, and differentiating the offerings from competitors. The strategy must be aligned with the insights gained from the situation analysis, ensuring that it is grounded in real-world conditions and opportunities.

Tactics: Focus on Specific Tactics, Techniques, and Actions Included in SOSTAC® Planning

Tactics are the specific actions and techniques that will be used to implement the strategy. This includes decisions about the marketing mix, such as product, price, place, and promotion. In a SOSTAC® marketing plan example, tactics are often detailed and tailored to the unique needs and opportunities identified in the situation analysis. Whether it's a social media campaign or a new pricing strategy, the tactics must be aligned with the overall objectives and strategy.

Actions: Explaining the Execution of Plans

Actions is where the marketing plan moves from planning to execution. It involves creating detailed action plans, including GANTT charts, to outline who is accountable for each task, the resources required (defined by MEN, MONEY, and MINUTES), and the timelines. Resource planning is crucial at this stage to ensure that the plan is realistic and achievable. By defining clear responsibilities and resources, the SOSTAC® framework ensures that the plan is not just a document but a living, actionable roadmap.

Control: Monitoring, Reviewing, and Modifying Plans

Control is the final stage of the SOSTAC® framework, focusing on monitoring, reviewing, and modifying the marketing plan as needed. Key Performance Indicators (KPIs), metrics, and analytics are used to measure success, often visualised through dashboards for easy tracking. This stage ensures that the plan is not static but can adapt to changing conditions and feedback. It's about continuous improvement, learning from what works, and adjusting what doesn't.

SOSTAC® Examples

Case study 1: sostac® application in e-commerce fitness store, situation analysis:.

• Competitor Analysis: Big brands like Nike and Adidas dominate the market, with emerging local brands posing new competition. The challenge lies in differentiating the store's offerings and building a unique brand identity.
• Current Situation: With a 15% market share in the local region and a strong online presence, the store has established a foothold but needs to expand further.
• SWOT Analysis:

Strengths: Strong customer engagement, innovative marketing strategies, and a diverse product range.

Weaknesses: Inefficiencies in the supply chain and limited brand recognition compared to industry giants.

Opportunities: Expanding the product line to include niche fitness products and leveraging social media for brand building.

Threats: Competition from established brands, price wars, and changing consumer preferences.

• PESTLE Analysis: The store operates in a politically stable environment with economic growth. The business landscape is shaped by the societal shift towards health consciousness, technological advancements in e-commerce, legal compliance, and a focus on environmental sustainability.

Objectives:

• Corporate Objectives: Aim to increase revenue by 25% in the next fiscal year, aligning with the growth strategy.
• Marketing Objectives: Enhance online visibility by 30% to reach a broader audience and increase customer retention by 20% through personalised engagement.
• Segmentation: Targeting fitness enthusiasts, athletes, and health-conscious individuals, focusing on specific needs and preferences.
• Targeting: Concentrating on millennials and Gen Z, who are more likely to engage with online fitness brands.
• Positioning: Positioning as an affordable provider of quality fitness products, emphasising value and reliability.
• Implement Influencer Marketing: Collaborate with fitness influencers to increase brand awareness (£100,000).
• Enhance Website UX/UI: Improve the online shopping experience to boost conversion rates (£50,000).
• Offer Seasonal Discounts and Loyalty Programs: Encourage repeat purchases and loyalty through exclusive offers (£75,000).
• Channel Mix: Utilise social media advertising, email marketing, content marketing, and SEO to reach the target audience (£175,000).
• Who: Marketing team to lead, with support from external agencies for specialised tasks.
• Budget: £500,000 allocated for the year, distributed across various channels and initiatives.
• Q1: Focus on website enhancement and influencer partnerships.
• Q2-Q3: Implement seasonal discounts and loyalty programs.
• Q4: Evaluate and adjust strategies as needed.
• Recommendations: Regularly review performance, adapt to market trends, and invest in continuous customer engagement.
• Metrics: Monitor sales growth, website traffic, and customer satisfaction to gauge success.
• Dashboards: Utilise tools like Google Analytics and CRM to track real-time performance.
• KPIs: Key performance indicators include conversion rate, customer lifetime value, and retention rate, aligning with the overall objectives.

By aligning the situation analysis with clear objectives, a targeted strategy, tactical implementation, actionable plans, and robust control mechanisms, this SOSTAC® plan provides a comprehensive roadmap for the E-commerce Fitness Store to achieve its goals. The precise allocation of budget and sequencing of actions ensures a focused approach, maximising the potential for success.

Case Study 2: SOSTAC® Application in Car Dealership

• Competitor Analysis: Competition from both local dealerships and national chains requires a unique value proposition. Understanding competitors' strategies and offerings is key.
• Current Situation: With a 10% local market share and a strong community reputation, the dealership has a solid base but needs to expand its reach, particularly online.

Strengths: Excellent customer service, community trust, diverse inventory.

Weaknesses: Limited online presence, dependency on the local market.

Opportunities: Expansion into the used car market and partnerships with local businesses.

Threats: Emerging online platforms and economic downturn affecting car sales.

• PESTLE Analysis: Compliance with political regulations, adaptability to economic fluctuations, understanding societal preferences for car types, technological integration in sales processes, legal compliance, and adherence to environmental regulations shape the business environment.

• Corporate Objectives: Aim to increase overall sales by 15%, focusing on both new and used cars.
• Marketing Objectives: Improve online inquiries by 40% to reach a broader audience and enhance customer satisfaction by 10% through personalised service.
• Segmentation: Targeting families looking for reliable cars, first-time buyers seeking affordability, and luxury seekers wanting premium vehicles.
• Targeting: Focusing on the local community, building on existing reputation and trust.
• Positioning: Positioning as a trusted, community-oriented dealership that understands local needs.
• Enhance Online Listings with Virtual Tours: Offer immersive online experiences to attract remote buyers (£50,000).
• Implement Referral Programs: Encourage satisfied customers to refer others, offering incentives (£30,000).
• Community Engagement through Local Events: Sponsor local events, host car exhibitions, and engage in community service (£70,000).
• Channel Mix: Utilise local advertising, social media, email marketing, and SEO to reach the target audience (£150,000).
• Who: Sales and marketing teams to collaborate, with potential outsourcing for specialised tasks.
• Budget: £300,000 allocated for the year, distributed across various channels and initiatives.
• Q1: Focus on enhancing online presence and launching referral programs.
• Q2-Q3: Engage in community events and partnerships.
• Q4: Evaluate and adjust strategies, focusing on year-end sales.
• Recommendations: Regularly review market trends, adapt to customer feedback, and invest in staff training for consistent service quality.
• Metrics: Monitor sales numbers, online inquiries, and customer satisfaction to gauge success.
• Dashboards: Utilise a CRM system and social media analytics to track performance in real time.
• KPIs: Key performance indicators include lead conversion rate, customer satisfaction score, and repeat business, aligning with the overall objectives.

By aligning a detailed understanding of the local market with clear objectives, a community-focused strategy, tactical implementation, actionable plans, and robust control mechanisms, this SOSTAC® plan provides a comprehensive roadmap for the Car Dealership to achieve its growth goals. The precise allocation of budget and focus on community engagement ensures a tailored approach that resonates with the local audience.

Case Study 3: SOSTAC® Application in Manufacturer of Cleaning Equipment

• Competitor Analysis: Facing competition from global manufacturers and local producers, differentiation through innovation and quality is crucial.
• Current Situation: As a leading supplier in the region with ambitions to expand globally, the focus is on entering new markets and building brand awareness.

Strengths: Strong innovation capabilities, established distributor network, quality products.

Weaknesses: Limited brand awareness in new markets, dependency on distributor relationships.

Opportunities: Emerging markets with growing demand and collaboration with local partners.

Threats: Cheaper alternatives, regulatory challenges, fluctuating economic conditions.

• PESTLE Analysis: Political trade agreements, economic stability, societal cleanliness trends, technological advancements in cleaning solutions, adherence to legal standards, and environmental considerations shape the strategic direction.

• Corporate Objectives: Expand to 2 new markets and increase revenue by 20%, aligning with the global growth strategy.
• Marketing Objectives: Increase brand awareness by 50% in new markets and enhance distributor relationships by 15% through targeted engagement.
• Segmentation: Targeting industrial, commercial, and residential sectors, catering to diverse cleaning needs.
• Targeting: Focusing on emerging markets where demand for innovative cleaning solutions is growing.
• Positioning: Positioning as a provider of innovative, reliable cleaning solutions, emphasising quality and sustainability.
• Collaborate with Local Distributors: Building partnerships to facilitate market entry (£200,000).
• Implement Targeted B2B Marketing Campaigns: Utilising account-based marketing, LinkedIn, and webinars to reach decision-makers in the target sectors (£300,000).
• Participate in International Trade Shows: Showcasing products and building relationships with potential distributors and clients (£150,000).
• Use of CRM: Implementing a CRM system to manage distributor relationships and track sales activities (£100,000).
• Who: Sales team to lead expansion efforts, marketing team for brand building, R&D for continuous innovation.
• Budget: £1,000,000 allocated for global expansion, distributed across various initiatives.
• When:  We are delaying our entry into new markets until 2023, with a phased approach through 2025.
• Recommendations: Regularly review market trends, adapt strategies to local needs, invest in training and support for distributors.
• Metrics: Monitor market penetration, revenue growth, distributor engagement, and cost per lead to gauge success.
• Dashboards: Utilise a sales tracking system and marketing analytics tools to track performance in real-time.
• KPIs: Key performance indicators include market share in new markets, distributor satisfaction, innovation index, aligning with the overall objectives.

By integrating a comprehensive situation analysis with clear objectives, a targeted strategy, tactical implementation, actionable plans, and robust control mechanisms, this SOSTAC® plan provides a strategic roadmap for the Manufacturer of Cleaning Equipment to achieve its global expansion goals. Including modern marketing tactics like LinkedIn, webinars, and account-based marketing, along with traditional methods like trade shows, ensures a multifaceted approach.

SOSTAC®: The Marketing Tool for Any Business

In the ever-evolving business landscape, the SOSTAC® framework stands out as a popular marketing model that provides a comprehensive roadmap for success. Whether it's an e-commerce fitness store looking to carve a niche in a competitive market or a manufacturer of cleaning equipment aiming for global expansion, SOSTAC®'s adaptable nature makes it a go-to choice for marketers.

A well-crafted digital marketing strategy is at the heart of any successful marketing campaign. SOSTAC®'s systematic approach ensures that every aspect of the marketing plan, from understanding the current situation to implementing control measures, is meticulously addressed. It allows businesses to align their marketing efforts with corporate objectives, ensuring a cohesive and targeted approach.

One of the key strengths of SOSTAC® is its ability to cater to different market segments, including existing customers. Businesses can build lasting relationships and foster brand loyalty by focusing on customer retention through tactics like social media marketing and targeted promotions. Engaging existing customers enhances revenue and strengthens the brand's reputation.

In today's digital age, integrating online marketing channels is vital. SOSTAC® encourages the use of various digital platforms, including search engine optimisation (SEO), to reach a broader audience. SEO and social media marketing ensure businesses stay visible and relevant in the crowded online space. When used effectively, these digital tools can significantly boost brand awareness and drive traffic, leading to increased sales and growth.

The SOSTAC® framework offers a structured and strategic approach to marketing planning. Its flexibility, comprehensiveness, and focus on both traditional and digital channels make it an invaluable tool for businesses of all sizes and sectors. Whether launching a new product, expanding into new markets, or nurturing existing customers, SOSTAC® provides the guidance and clarity needed to navigate the complex marketing world. It's not just a popular marketing model; it's a proven pathway to success.

PR Smith's SOSTAC® Guide to Your Perfect Digital Marketing Plan 2022 is regularly updated and available online. To learn more, visit www.SOSTAC.com

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SOSTAC (Situation, Objectives, Strategy, Tactics, Actions, Control)

One line summary of sostac.

SOSTAC is a comprehensive marketing framework that provides a structured approach for planning and executing effective marketing strategies by focusing on Situation Analysis, Objectives, Strategy, Tactics, Actions, and Control.

Why Is SOSTAC Important?

SOSTAC allows businesses to create well-organized and systematic marketing plans that facilitate the achievement of their goals by ensuring they thoroughly analyze their current situation, set clear objectives, devise informed strategies, execute tactics, implement actions, and measure performance through control mechanisms.

Detailed Explanation of SOSTAC

Situation Analysis

The first step in the SOSTAC framework is to conduct a Situation Analysis, which involves assessing the current state of the business, its market environment, and any internal and external factors that may impact its performance. This can be done through various analytical tools such as SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis, and competitor analysis. Understanding the current situation enables a business to identify areas for improvement and capitalize on opportunities for growth.

After analyzing the situation, the next step is to establish clear and measurable Objectives. These objectives should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure that they are realistic, focused, and time-sensitive. Objectives should align with the overall business goals and can include increasing brand awareness, driving sales, or improving customer satisfaction.

Strategy involves formulating the overall approach that the business will use to achieve its objectives. It provides a roadmap and guidelines for decision-making, resource allocation, and the prioritization of marketing efforts. Strategies can be centered around various aspects of marketing such as segmentation, targeting, positioning, and differentiation. A well-defined strategy is crucial for ensuring that marketing efforts are coherent and aligned with the business’s objectives.

Tactics refer to the specific marketing activities and tools that the business will use to execute its strategy. These can include advertising, public relations, content marketing, social media, search engine optimization, email marketing, and more. Tactics should be selected based on their effectiveness and relevance to the target audience and the specific objectives the business wants to achieve.

Actions are the concrete steps that need to be taken to implement the chosen tactics effectively. This stage involves creating detailed action plans that outline the specific tasks, responsibilities, resources, and timelines required to execute each tactic. Actions should be closely monitored and adjusted as needed to ensure that they are on track to achieve the marketing objectives.

The final stage in the SOSTAC framework is Control, which involves monitoring and measuring the performance of marketing efforts against the set objectives. This can be done through key performance indicators (KPIs), metrics, and analytics tools. By regularly reviewing and evaluating the effectiveness of marketing activities, businesses can identify areas for improvement, adjust their strategies as needed, and make data-driven decisions to optimize their marketing performance.

How to Use SOSTAC in Marketing?

To apply the SOSTAC framework in marketing, follow these steps:

• Conduct a Situation Analysis : Start by gathering data on your business, industry, competitors, and target audience. Use tools like SWOT and PESTLE analysis to identify your strengths, weaknesses, opportunities, and threats, as well as the external factors affecting your market.
• Establish SMART Objectives : Based on your situation analysis, set clear and measurable objectives for your marketing efforts. Ensure they are specific, measurable, achievable, relevant, and time-bound, and align with your overall business goals.
• Develop a Strategy : Formulate a high-level approach to achieve your objectives by considering aspects such as segmentation, targeting, positioning, and differentiation. Make sure your strategy provides a coherent framework for guiding decision-making and resource allocation.
• Select Tactics : Choose the specific marketing activities and tools that will help you implement your strategy effectively. Consider factors such as your target audience, budget, and objectives when selecting tactics.
• Create Action Plans : Develop detailed plans for each tactic, outlining tasks, responsibilities, resources, and timelines. Ensure your action plans are aligned with your strategy and objectives.
• Monitor and Control : Set up key performance indicators (KPIs), metrics, and analytics tools to track the performance of your marketing efforts. Regularly review and evaluate your marketing activities to identify areas for improvement and optimize your marketing performance.

Further Reading Materials

To deepen your understanding of the SOSTAC framework and learn more about marketing planning, consider the following resources:

• SOSTAC(r) Guide To Your Perfect Digital Marketing Plan : Written by PR Smith, the creator of the SOSTAC framework, this book offers a comprehensive guide on applying the SOSTAC model to digital marketing planning. It includes case studies, practical examples, and templates for various industries.
• Marketing Strategy and Competitive Positioning : Authored by Graham Hooley, Nigel Piercy, and Brigitte Nicoulaud, this book provides insights into marketing strategy formulation, implementation, and monitoring. It covers key concepts such as segmentation, targeting, positioning, and competitive advantage.
• Digital Marketing Excellence: Planning, Optimizing and Integrating Online Marketing : Written by Dave Chaffey and PR Smith, this book is an excellent resource for understanding digital marketing planning and integrating the SOSTAC framework into online marketing efforts.
• Kotler on Marketing: How to Create, Win, and Dominate Markets : Authored by Philip Kotler, a renowned marketing expert, this book provides valuable insights into various aspects of marketing, including planning, strategy, tactics, and control.

By exploring these resources, you can gain a deeper understanding of the SOSTAC framework, learn how to apply it effectively in marketing planning, and discover best practices for developing and implementing successful marketing strategies.

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A SOSTAC Marketing Plan for Monzo

Written by Josh A .

Introduction

The market situation in the modern environment is changing quickly due to disruptive innovation trends, the entry of new market players, and the development of new communication technologies, which forces most companies to revise their marketing plans more often than before (Bolton et al., 2019). This activity is characterised by increasing complexity because decision-makers need to account for multiple factors including the available resources, the competence of existing staff members, the unique ways of creating customer value, and the targeting decisions defining the scope and focus of future campaigns. The SOSTAC® framework successfully addresses most of these elements by providing a solid foundation for building a comprehensive marketing strategy progressing from situation appraisals to implementation tactics and monitoring measures (Smith, 2022). This report explores the expansion of Monzo to the US market and provides a SOSTAC® plan for this company aimed at addressing the key challenges of this internationalisation move.

Company Background

Monzo is a UK-based mobile-only bank that was one of the pioneers of digital banking in this country (Carey, 2018). It presently has more than 1 million customers and a generally positive reputation based on its high perceived security, a wide range of services, and its strategic partnerships with other technological start-ups providing additional services to its cardholders free of charge or at a discounted price (Cook, 2019). While the company enjoys a substantial success in the UK market, it is presently considering an expansion in the United States by offering its debit cards to US consumers in several major cities.

SOSTAC® Planning

The SOSTAC® planning framework is widely used by specialists to develop effective marketing plans (Smith, 2022). It offers a comprehensive solution starting with a situation analysis to identify where the company is right now followed by the development of objectives outlining where it seeks to get to. Afterwards, the marketer develops specific strategies, tactics, and actions necessary to achieve these goals. The unique element of this model is its sixth dimension determining the control measures critical for measuring and monitoring the resulting performance to quickly identify any deviations from the plan or areas of inefficiencies (Safanta et al., 2019). The following sub-sections outline each of these dimensions for the Monzo organisation.

Figure 1: The SOSTAC® Framework

Source: Smith, PR (2022) The SOSTAC® Guide to your Perfect Digital Marketing Plan (2022)

Situation Analysis

Goal performance.

The initial scope of Monzo expansion in the US is limited to the distribution of several thousands of debit cards to live events visitors in several major cities (Monzo, 2019). This suggests that the company primarily seeks to gain foothold in this market and gradually build its reputation among US customers (Warren, 2019). The following objectives may be formulated for this purpose:

• Distribute the first 10,000 cards by March 2020.
• Increase the number of followers from the US region by 5,000 users for its Facebook page and by 5,000 users for its Instagram page.
• Increase online recognition by getting at least 10 positive reviews from independent opinion leaders from the US.

Customer Insight

The US banking industry is less advanced than the UK one from the technological standpoint as only 3% of all cards are contactless and many banks fail to provide the fully online banking experience (Warren, 2019). According to a recent report from Accenture (2019), the share of tech-savvy consumers seeking innovation reached 21% making this country one of the leaders in openness to financial services innovation. This can create a perfect ‘window of opportunity’ for Monzo as a digital-native bank.

Marketplace SWOT

Table 1: Marketplace SWOT

Internal Capabilities and Resources

Monzo has a unique corporate culture based on the concept of absolute transparency (Monzo, 2019). This practice is evident in both the public discussions of company achievements and mistakes and the internal practices supporting information-sharing, whistleblowing, and audit results disclosure. In combination with the digital competencies, this creates valuable internal capabilities providing for a high degree of compliance with state regulations, which may be beneficial for the stricter US market (Fleming, 2018). Additionally, the 1+ million of UK users and sufficient financial resources gained through external investments and crowdfunding campaigns allow Monzo to launch medium- or large-scale promotional campaigns in the US in order to support its expansion into this market.

The scope of initial expansion should be set to 10,000+ debit cards distributed before March 2020 and $100,000 worth of transactions performed by the end of 2020.

In terms of quality, the company needs to get 100+ positive reviews from the consumers satisfied with the promptness and convenience of the rendered financial services in the US within the first 6 months following its entry.

The company should get 5,000 new followers from the US for its Facebook page and 5,000 new followers from the US for its Instagram page.

New publications posted on the aforementioned social media pages must be liked or reposted by 100+ individuals from the US on the average within the first 6 months following the market entry.

The preference for online promotion also produces substantial savings in terms of advertising costs.

Segmentation, Targeting, and Positioning (STP)

From the segmentation standpoint, Monzo is interested in several categories of users. First, its offering is highly appealing to tech-savvy and innovative customers seeking a fully online banking experience (Coulter et al., 2019). Second, its lower servicing costs and partnerships with money transfer and insurance services providers make it lucrative for the persons interested in costs optimisation (Weiss, 2019). These factors suggest that online targeting may be more effective for reaching these two segments since both of these categories are actively using online platforms to search for new information and monitor interesting technological and financial trends. In terms of positioning, Monzo removes the psychological borderlines between its customers and the brand by maintaining full transparency in the discussion of its own flaws (Carey, 2018). It went as far as allowing consumers to choose a new name for the company in 2016 (Monzo, 2016). This approach may be seen as a unique and highly provocative one in the traditional banking industry relying on separation from the users and the image based on concealment of problems. The bold and straightforward positioning of Monzo should be retained in the US market as one of the key differentiating elements of its brand identity.

Online Value Proposition

It can be suggested that the online value proposition of Monzo should emphasise such qualities as functionality, cost advantages, security, and overall transparency (Ryan, 2016). As opposed to traditional banks, this organisation can work with its consumers directly to assist them in reaching their financial goals (Burgess, 2019).

Integration

The integration of the aforementioned elements should be performed via the demonstration of both the brand and its ideal customer image in all advertising materials and blog posts (Kennada, 2019).

Specific tools for promoting Monzo to US consumers may include social media marketing, context advertisements, and live events (Ryan, 2016). The three primary communication platforms should be the corporate website, the official Instagram page, and the official Facebook page. Considering the focus on direct customer engagement, official YouTube videos or traditional advertising may be less effective and should be omitted during the first months of the campaign (Kennada, 2019).

Tactics (E-Marketing Mix)

Table 2: e-marketing mix.

According to Sokowski (2015), all objectives must be SMART (specific, measurable, actionable, realistic, and time-bound).

Social Media Marketing

For the Facebook campaign, Monzo should focus on publishing posts about ‘financial literacy’ and the ways to cut costs and increase customer convenience through the use of online banking (Weiss, 2019). These posts should not be associated with sales activities directly but may include links to the corporate website, products, or blog publications. For Instagram marketing, the company should utilise the same approach realised in the UK and focus on the promotion of user experiences, lifestyle recommendations, and user-generated content rather than advertising materials. This will allow the bank to fully utilise the visual appeal of this platform and lead consumers into adding #Monzo tags to their personal publications to increase the overall marketing reach (Patel, 2019a).

Contests and Engagement Campaigns

The previous recommendation should lead to several online contests based on both hashtagged visual content and textual ideas (Patel, 2019b). The company should offer valuable prizes for offering Monzo-inspired photos on Instagram and cost optimisation ideas in Facebook comments. This way, it can appeal to both earlier identified customer segments more effectively (Kennada, 2019).

Live Events

Finally, the company needs to organise several live events in each of the three targeted cities to promote its products, increase its market exposure, and build customer trust through direct communication and experiential marketing (Kennada, 2019). The promotion of these meetings should be performed in accordance with the earlier performed customer profiling and focus on younger and tech-savvy audiences (Ryan, 2016). It may be possible to partner with technology exhibitions and other innovative events to capitalise on the overall concept of innovativeness and advanced consumer experience.

The three utilised marketing strategies must be closely controlled in terms of their intermediary and final outcomes. In the case of social media marketing, Monzo needs to track several performance indicators, namely the number of likes and reposts, the number of comments, the number of brand references, and the number of leads produced by individual campaign activities (Ryan, 2016). Additionally, the company should monitor consumer proactivity, namely the intention to proactively establish communication on social media to learn more about the offered products and services. In addition to the above-mentioned measures, Monzo should control the signs of consumer dissatisfaction that frequently occurs during various online lotteries and contests (Hanlon, 2019). It must ensure that the prize distribution is performed in a highly transparent manner and the winners are real persons ready to confirm the campaign fairness. In terms of live events, the company should focus on the resulting number of leads, the number of distributed debit cards, positive reviews in offline and online media, and the customer satisfaction expressed on various online platforms (Chaffey and Ellis-Chadwick, 2019). If some of these indicators are sub-optimal, it may be necessary to organise events in different cities or locations or discard this approach completely.

It can be summarised that Monzo has good prospects of success in the US market but needs to clearly demonstrate its advantages as a digital bank to the two selected customer segments (Hofacker, 2018). This effect can be achieved by building trust via social media engagement, live events, and various contests and campaigns (Kennada, 2019). If this initial launch in three cities proves successful, it may be possible to expand the reach to additional major locations depending on the results of geotargeting tracking and the number of search requests analysis for various US regions.

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Carey, S. (2018) “How Monzo is rewriting the rulebook when reporting data breaches”, [online] Available at: https://www.computerworld.com/article/3427792/how-monzo-is-rewriting-the-rulebook-when-reporting-data-breaches.html [Accessed on 19 October 2019].

Chaffey, D. and Ellis-Chadwick, F. (2019)  Digital Marketing , London: Pearson UK.

Cook, J. (2019) “Rise of the digital banks: Monzo and Revolut on track to treble customer numbers”, [online] Available at: https://www.telegraph.co.uk/technology/2019/09/03/rise-digital-banks-monzo-revolut-track-treble-customer-numbers/ [Accessed on 21 October 2019].

Coulter, M. (2019) “Monzo, Starling and Revolut hunt for older, more diverse, customers”, [online] Available at: https://www.ft.com/content/ca34eede-7587-11e9-bbad-7c18c0ea0201 [Accessed on 21 October 2019].

Fleming, M. (2018) “How Monzo’s ‘radical transparency’ approach is disrupting banking”, [online] Available at: https://www.marketingweek.com/monzo-marketing-innovation-disrupt-banking/ [Accessed on 18 October 2019].

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• Home Marketing

6 Easy Steps of Marketing Planning Using PR Smith SOSTAC Model

I will explain the 6 easy steps of Marketing planning from PR Smith’s SOSTAC® Plan with examples. In the end, I will also share some important info-graphics explaining how the model can be used in digital marketing.

Table of Content

What does sostac ® stand for.

• Why Use PR Smith SOSTAC ® Marketing Planning Model ?
• The 6 Easy Steps of the SOSTAC ® Model 

Benefits of Paul R Smith SOSTAC ® Marketing Planning Model

Using SOSTAC ® Planning Model in Digital Marketing

PR Smith SOSTAC ® Marketing Planning Model  is a management tool designed to help managers create effective marketing strategies and campaigns. It can be a good planning companion and provides a solid road map to help you achieve business objectives. I am going to focus more on marketing planning using SOSTAC planning framework.

However, the model might be too simplistic in its approach as every entrepreneur or marketing manager faces a unique business situation. To overcome this challenge, one can customize the model and can create a SOSTAC ® plan as per the business requirements.

SOSTAC stands for Situation, Objective, Strategy, Tactics, Actions, and Control. These six concepts make up the SOSTAC ® model and this article would explain them as 6 easy steps in the next section. Most managers are familiar with management concepts used in the model but they often struggle to increase the productivity of their team. Often, bad planning and execution lead to missing targets and that is why we need to utilize the model.

SOSTAC ® is a practical tool that facilitates a manager in the planning room. It is supposed to make your life easy as a manager and give you a solid direction. After all, it is a paid tool, it must deliver on its promise.

Here are the 6 easy steps one by one explained in light of management concepts.

6 Easy Steps of the SOSTAC ® Model  (with examples)

 If you are a manager or an entrepreneur, you know very well that situation analysis is a complex and demanding process. Often there are no clear answers, and you might have to rely on your guts as a last resort.

When a firm is faced with uncertainty and it is hard to choose from available options. You’ll have to do a complete situation analysis. The process of Situation analysis involves external and internal environment analysis.  It is often a troika: the organization’s resources(strength), the opportunity outside, and the market situation.

Due to the changing business environment, you might be losing a lot of business. You need to figure out the appropriate but timely response. As a manager/entrepreneur, your task is to find the right fit based on the firm’s capacity and resources to gain the desired market share. Sometimes, you might find an opportunity but you don’t have the team (resources/skills) to take advantage of.

That’s what you need to figure out in a situation analysis- a strategic fit-out of the troika. Thus, the situation analysis makes up an important step in marketing or business planning.

Example: You would like to build a website. Here is what the situation looks like.

The current online market is tough and competitive. Growing a website is a challenge. Giants like Facebook, YouTube, Twitter, LinkedIn, Medium, etc own most of the traffic online. Some people might even claim that websites are dead now or they argue that at least it is the case mostly with the new ones.

They argue that there are a few big websites ranking high in search engines for every popular or profitable keyword. How can you rank your websites against the giant internet companies or authority websites with deep pockets? In other words, you will make a website but no one will find it.

There are always naysayers. Don’t worry about it. Yes, it is true that building a website is difficult but it is still working. However, in order to build a profitable website, You need to ask yourself some important questions( the situation analysis):

How much do you want to spend? Do you have a team to compete with big websites on the topic of your interest? Are you going for a niche?

If you can find the fit, go and build your website. By the way, websites are not dead but the way you have to do grow them now has changed. You see when the going gets tough, most people would exit the website market, and it is good news for those who would like to stay the course.

Depending on the industry & your business, you can begin with situation analysis as part of business or marketing planning.

(Note: PESTLE and SWOT can also be useful to execute a situation analysis.)

2. Objectives

Once you do a good situation analysis you are in a better position to decide on the objectives. These objectives(goals) should be both short and long-term. To make the objectives clear to your team and somewhat inspirational, it is recommended that you use the SMART approach.

SMART stands for Specific, Measurable, Assignable, Realistic, and Time-related . If you make your objectives according to the SMART framework of management, your team is likely to have optimal performance. For a quick start on SMART, you can also take a look at SMART criteria and George T. Doran

Example: The website in 12 months: 30,000 monthly visitors, Revenue: $1000/Month. You can also specify traffic by region.

3. Strategy

Strategy  is a plan that would tell your team how they would get to their goals or objectives.  Simply put, Strategy is your personal or team’s answer to the question “How”.

However, a strategy should be based on differentiation, otherwise, you would have no competitive advantage. Hence strategy is a different and better approach.

In other words, we can say the strategy is a different but better answer to the question of “How is it done? How do we create the customer value? How do we create the customer experience?” etc.

Example: For the website, strategy can be based on content marketing to create a brand in a niche with WordPress CMS.

These are specific or detailed actions that your company needs to take to execute the strategy. Tactics are the details of a strategy. The situation analysis above should also inform you which tactic to select.

The use of tactics also depends on the nature of a business and its leadership style. An ambitious entrepreneur/leader would go more for a frontal attack requiring aggressive tactics. It means a lot more spending on the promotion of a business.

Examples: To build the website, the business can opt for Email marketing, Google Ad Campaigns (PPC), and sales funnel as tactics.

This step of  SOSTAC ® requires you to align and deploy your team efficiently to implement the tactics.

Simply ask:

Who  is going to do  What  and  When ?

Example : You can assign the tasks to an in-house team or can hire someone from the market to help you execute your email marketing plan or PPC for the website. Sometimes, it is just better to find a highly specialized agency to run the email marketing or online ads campaign for you.

How can you control and measure the processes? This is where you can assign KPIs and create a system of accountability at the individual and team levels. It is an internal management issue. Your objective is to monitor the performance of your team and get timely feedback to correct it.

It is a lot easier to measure an online marketing campaign. For example, in the case of a website you have many measurement tools available at your disposal. Such as google analytics, Hubspot’s tools, etc. However, traditional marketing communication programs are difficult to measure. You can always get a research firm to help you out with an audit survey if you can afford to do so.

The model provides a clear and easy  method of marketing planning . It is easy to implement and apply to the marketing processes. If applied the right way, you should be able to get a positive marketing or business outcome with SOSTAC ® Planning . However, you’ve to pay for the tool to get it.

Please, take a look at the images from PR Smith’s SOSTAC ®   below and I hope you find them useful.

Main Reference

SOSTAC ® is a registered trademark of PR Smith. For more information on SOSTAC ® Planning & becoming a SOSTAC ® Certified Planner visit www.SOSTAC.org .

3 Steps to Developing a Great Marketing Strategy for a small business.

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