MASTERS OF SCIENCE IN INTERNATIONAL MANAGEMENT
Module
5: KMGT-640-1 Marketing Management
Instructor:
Richard Frost
Name:
Muhammad Khokhar
Student
ID: H00035631
Final
Project Proposal: Softera Company
WEEK-5
Table
of Contents
.docx#_Toc411357263″>Executive
Summary. 3
.docx#_Toc411357264″>Introduction. 4
.docx#_Toc411357265″>Objective. 4
.docx#_Toc411357266″>Situational
Analysis. 4-5
.docx#_Toc411357268″>Customer Needs. 5
.docx#_Toc411357269″>Target Specifications. 5
.docx#_Toc411357270″>Consumer Profile. 5-6
.docx#_Toc411357271″>Distribution
Channel 6
.docx#_Toc411357272″>Communication
Plan. 6
.docx#_Toc411357274″>Marketing
Communication Mix Elements 6-7
.docx#_Toc411357281″>Advertising
budget 7
.docx#_Toc411357282″>Timelines. 7
.docx#_Toc411357283″>References. 8
Executive
Summary
This Marking plan outlines the
strategy for marketing and sales of a software company, Softera, which has a
developed a way of getting information from consumers about their purchasing
habits and producing an ‘unmet need list’ which anticipates future purchase.
The new software will be called InfoSoft. The accuracy percentage of this
software can be as high as 95% with analysis of a few month data and predict as
to what the customers are going to buy in the next 30 days. However, the unmet
needs are decided bases on bank cards and credit cards usage by the customers.
A high degree of profitability can be expected form the software as every
organizations, big or small, is striving to their products sold. The reputation
of the company will help the product influence the customers. The company will
be based in the New York City, and initially it will target the local
organizations which are selling varied kinds of products and services.
Introduction
Database marketing is an evolving
field and corporates are spending a lot on purchasing database for different
marketing activities. The database of customers so that they can be easily
targeted. The differentiation is database marketing lies in the fact that more
attention is paid to data analysis compared with the direct marketing. Database
marketing stresses on the use of statistical tools and techniques in order to
determine customer behavior. The more the data, the more chances of the
products getting sold.
Customer database usually means
customer name, transaction history, and other relevant information which can be
utilized by the organizations. There are organizations which compile a list of
these customers for different product categories. The information are collected
from a number of source. With the bombardment of massages from the marketers,
the customers have started ignoring and the success rate of these database has gone
down extremely. Furthermore, the companies like Google have started filtering
these messages and showing in different categories such as promotion category.
However, the data base marketing is cheaper compared to the traditional
marketing. The corporates are finding it quite difficult to reach out to the
customers. In order to increase the success percentage, the organizations are
required to make their communication reach to only the target customers because
the likelihood of success is higher in their case. If the customers are looking
for come thing to buy and they get promotional communications regarding the
same, they will respond to that.
Objectives
Service awareness: To achieve awareness of 25%
with target market within one year.
Interest: To ensure 30% word of mouth
communication among the existing customers.
Market penetration: To achieve a 25% market share of
database marketing within a year in the city.
Breakeven:To attain breakeven point after
10 months of the launch.
RIO: To attain an RIO of 500% from
the marketing campaign.
Situational
Analysis
PEST Analysis
a) Political:
The government
regulations are conductive to businesses. However, the company may face problem
in terms of privacy infringement. The government is strict on privacy infringement
and this the company will have to pay a lot attention to the regulation.
b) Economic:The economic environment refer to
the direction and nature of the economy. New York City is the hub for business
activities in the world and it is home to a number of big multinational
organization. The country has managed to grow at a decent pace in the recent
past.
c) Social:
The
socio-cultural segment is more concerned about the attitudes and behavior of
the society. The organization have started focusing more on the modern
marketing methods.
d) Technological:
The customers are
highly dependent on credit cards, debit cards, and online media. This is quite
suitable for the proposed product.
Customer
Needs
The customers need such a database
management software which is more dynamic in nature and is not based on the
outdated data. There are software that have transaction history of the
customers but the data may not be significant for long. For instance, if the
organization has data of the customers looking to buy a mobile (based on their
searches on the Internet and tracked through cookies), they may not be looking
to buy that after a month, because they would have purchased that product in
between this time. Directing the communication on such customers after a month
or so will be completely waste of time and money as they will not be looking to
buy the same mobile in the near future. Therefore, the organization need to
predict as to what customers want to buy in the near future and a software or a
system that predicts the consumer behavior can be extremely useful in
generation more sales.
Target
Specifications
The customers need to know the
customers details who are planning to buy the products which they are selling.
They will require an assorted list of the customers who are looking to buy
those products. They can devise customized communication plan directed at them
which will ensure higher success rate.
Consumer
Profile
|
Demographic Age: 2 plus years Sex: NA Revenue: $70,000 Education level: NA Marital Status: NA |
|
Geographic Indian origin |
|
Psychographic Social class: NA Lifestyle: NA |
|
Behavioural Occasions: Throughout Benefits sought: Looking Usage rate: Organisations User status: Organisations |
Distribution
Channel
A distribution channel is nothing
but the chain of organizations and individuals involved in getting the services
or product from producer to the customers. The company should sell its product
through its website. The company should develop a highly comprehensive and
interactive website which will have integrated payment system. Moreover, the company
will sell its products through other associates of software sellers such as
Softonic. The company will give commission for every product sold by them.
Communication
Plan
Position Strategy:Its aims to attain a distinct
position in market segment (Sokhatska and Lahotska, 2013).Softera will focus on
its unique elements which no database management software is offering. The company
will target all medium and large organizations who are looking to sell their
products through online media.
Marketing
Communication Mix Elements
a) Push
vs. Pull Marketing:In
a push marketing, the customers are just informed about the product (Wilson,
and Gilligan, 2005). Usually, it is one way communication, such as TV and radio
marketing (Lambin, 1997). On the other hand, pull marketing is a two way
communication which communication which interacts with the customers as well
(Mullins, et al., 2005). Softera should focus more on pull marketing. However,
the company will also rely on push marketing initially in order to reach to the
masses.
b) Advertising:Advertisement has a great role of
an organization(Yeshin, 2012). It provides a required push to a company and the
start-ups can usually benefit a lot form it (Kitchen and Burgmann, 2004).
Softera will rely on a number of promotional activities in order to make the
product reach. The company will focus a lot on advertising the product to the
local market because it is targeting local businesses.
c) Personal
Selling:Its
promotional method in which people use their techniques and skills to build a
more close and personal relationship with the customers (Lambin, 1997). This method
will be adopted by the sales personnel looking to cater to the corporates. They
will fix appointments with corporates in New York City and visit their places
to explain the advantages of the product and convince them to buy.
d) Sales
Promotion:It’s
a method in which usually utilized to introduce new products, lift sales
temporarily, attract traffic, or clean inventories (Kitchen, and Burgmann,
2004).Softera will use this method in order to promote its products.
e) Public
Relations:It’s
a method to professional create as well as maintain public image (Percy, 1997).
Softera will deploy personnel who can build relationship with local magazines
and customers to cover the news about the launch of the product or other news
related with the product. Moreover, the company will look to sponsor local
events in the city, such as sport event.
f) Online
Marketing:Online
marketing or social media marketing is one of the most cost-effective tools to reach
to the target customers (Yeshin 2012). Softera will advertise on Facebook,
Google AdWords, Twitters, and other popular websites. As discussed above, the
company will have a dedicated website which will provide all the necessary
information as well as contact information to the prospects.
Advertising
Budget
|
Task |
Cost |
|
Creation of ads and literature |
$100,000 |
|
Radio |
$250,000 |
|
|
$300,000 |
|
Social Media Marketing |
$400,000 |
|
Salary |
$100,000 |
|
Total |
$1150000 |
Timelines
|
Activities/Time |
M1 |
M2 |
M3 |
M4 |
M5 |
M6 |
M7 |
M8 |
M9 |
M10 |
M11 |
M12 |
|
Marketing plan |
||||||||||||
|
Creation of ads |
||||||||||||
|
Running Ads |
||||||||||||
|
Social media marketing |
||||||||||||
|
Evaluation |
References
Kitchen, P. J., &Burgmann, I. (2004). Integrated marketing communication. New
York: John Wiley & Sons, Ltd,[Accessed
on: 7 February 2015].
Kotler, P. and Keller,
K. (2012) Marketing Management (14thed.),
Harlow, Essex: Pearson, pp. 145-164,[Accessed
on: 7 February 2015].
Lambin, J. J. (1997). Strategic marketing management. Maidenhead: McGraw-Hill,[Accessed on: 8 February
2015].
Mullins, J. W., Walker, O. C., Boyd, H. W.,
&Larréché, J. C. (2005). Marketing
management: A strategic decision-making approach. New York: Pearson
Education,[Accessed
on: 8 February 2015].
Percy, L. (1997). Strategies
for implementing integrated marketing communications. Lincolnwood, IL: NTC
Business Books,[Accessed
on: 9 February 2015].
Sokhatska, O., &Lahotska, N. (2013). Strategic
marketing management. Journal of European
Economy, 12(1),117-120,[Accessed
on: 9 February 2015].
Wilson, R. M., & Gilligan, C. (2005). Strategic marketing management: planning,
implementation and control.New York: Routledge,[Accessed on: 10 February
2015].
Yeshin, T. (2012). Integrated
marketing communications. New York: Routledge,[Accessed on: 10 February
2015].
MASTERS OF SCIENCE IN INTERNATIONAL MANAGEMENT
Module
5: KMGT-640-1 Marketing Management
Instructor:
Richard Frost
Name:
Muhammad Khokhar
Student
ID: H00035631
Final
Project: Softera Company
WEEK-7
Table
of Contents
.docx#_Toc411357264″>Introduction. 3
.docx#_Toc411357265″>Factors
of a Marketing Plan. 3
.docx#_Toc411357266″>Marketing
Plan. 3
.docx#_Toc411357268″>Situational Analysis. 4
.docx#_Toc411357269″>Objectives. 4
.docx#_Toc411357270″>Strategy. 4-5
.docx#_Toc411357271″>Tactics. 5
.docx#_Toc411357272″>Budgets. 5
.docx#_Toc411357274″>Controls. 5-6
.docx#_Toc411357281″>Conclusion. 6
.docx#_Toc411357283″>References. 6-7
Introduction
Software developed by Softera
Company is very useful it is very helpful for anticipating future purchases of
customers according to their buying habits. This software works on the data by
use of credit cards and bank cards with rising privacy concern. This software
is useful for almost every business just because by using this software a
business can predict with some 95 percent accuracy what product a consumer will
likely to buy (or Need to buy) in the next 30 days by jut using few months of
data.
Factor
of a Marketing Plan
Launching new software by a software
company can be an exciting thing in the life of any development company, but
something this excitement turns to a frustration just because of the failure of
the software in the market. Reason behind the failure of a newly launched
software in not necessarily that the software is somehow lacking, it could be
failed due to non-existence of a marketing plan (Baines and Page, 2011). Below
are some components of a marketing plan which should have considered by Softera
Company at the time of making their marketing plan of newly developed software.
The company can also divide their customers in different segment such as
business type, location and company size. This kind of buyer segmentation is
helpful for the company in order to track their right and potential customers.
Marketing
Plan
The Softera Company’s new software
which is helpful to identify what product a consumer will likely buy or need to
buy in the next 30 days. This new software works with 95 percent accuracy with
only a few months data. New here is a marketing plan for the company for their
new software. It has been identified that a company needs a vision, the vision
demand a strategy, the strategy requires a plan and the plan requires action
(Moingeon and Soenen, 2003). Below is a detailed description of the marketing
plan for the Softera Company, which consists of six steps:
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Situational
Analysis
The company has examined their macro
factors that are economic, political, legal, social cultural and technological.
The company also carries out their SWOT analysis as it has been identified that
Softera Company’s strength is that this kind of software has never been
introduced in the market. Weakness for the company is that this software is new
so may be or may not be acceptable by the business people, means the chances of
failure of new product. Opportunity for the company is to grab the whole market
monopoly just because this kind of software is going to launch in market first
time (Muhammad and Alwi, 2012). A threat for the company is identified that it
has found with researches that whenever a new product is launched in the market
it is copied by rivals very fast.
Identification of
the Target Market:Softera
Company has to identify their target market before going further for their
marketing plan. Target market for Softera Company consist small and big
retailers or some manufacturing units who also produce consumer goods. It is
helpful to identify that what product a consumer will likely to buy or need to
buy in the next 30 days so that they will only purchase those items from
wholesalers. New software launched by Softera Company is also helpful for manufacturing
units to identify the future market demand. For making a marketing plan for new
software, it is necessary to find out target market (Brodie and Winklhofer,
2008). Target market accesses demographic, geographic, psychographic factors
and product usage characteristics of the target market. In addition of this
target market also access the current need of the firm of that particular
target market.
Objectives
The Softera Company’s objective is
to sell their new software to manufactures and local retailers. The objective
is to reach as many customers in the local market and in the global market
also. The company has assigned a special marketing team for fulfilling their
objectives. Marketing manager is responsible for the results of the marketing team
as the company wants to fulfill their objective in a short span of time(Dahlen
and Smith, 2010). Main objectivesof the company behind this the profit that the
company wants to earn huge profit with their latest developed software. With
the help of situational analysis, it I easy for the company to set their objectives
and vision.
Identification for
Target Buyers:Target
buyers for Softera Company who could be the buyer for their software are
identified all those retailers, wholesaler and manufacturer who is seriously
buying or manufacturing products according to the customer needs. This software
will help to manufacturer to identify what product, customer likely to buy or
need to buy in next 30 days. With the help of this software wholesalers could
also find the requirement of product by customer in the next 30 days so they
could only stock products in their warehouse (McCabe, 2009). The Softera
Company can also divide their customers in different segment such as business
type, location and company size. This kind of buyer’s segmentation is helpful
for the company in order to track their right and potential customers.
Strategy
The Softera Company has made a
strategy for attaining their objectives. According to the company’s strategy,
it has been identified that company, first reach to every manufacturer for
selling their products with letting him the benefits of the new launched
software. In addition to this, the company is also using advertising for
promotion their new product globally. Social media such as Facebook, Twitter
and WhatsApp is also used by the company for their promotional activities
(Hazlett, 2010).
Establishment of
the Pricing Point:It
is necessary for Softera Company to establish a price point which is all about
to determine the price of their new product. Determining price is not an easy
task just because it has to consider also the competitor’s price of the same
product just because if the same product is available in the market at cheap
price than it may be the reason of failure of a product even the marketing plan
organized well. Pricing of the product should also consider the geographical
and economical factor of target market (Dahlen and Smith, 2010). Pricing is the
main factor of a marketing plan just because it directly affect to the sale of
a product. The high price of a product always does not mean that the product
will decline in the market, but it is necessary that a high priced product
should have a good quality or more features or a brand name, could be easily
accept by customers.
Tactics
For supporting their strategy
company has also used some other tactics such as 4Ps that are Place, Promotion,
Price and Product. The company has set their first place where they are going
to sell their product initially is the United States and promotion method is
online, price has decided at 350$ for a copy of the software. Tactics is support
to the company’s strategy through which company can get their objective within
a set period of time.
Budget
The company has allocated budget for
their different activates such as they have allocated 1 Million $ for their
online promotion. The budget has preset just because it is associated with cost
of the product (McCabe, 2009). The company has set their all budget to their
different activities and the sum of the cost of all these activities has added
up with the cost of the product.
Proposal for an
Advertising Venue:Advertising
venue is also an important factor of today’s marketing plan just because in
today scenario, customers only buy the product which they have seen in
advertisements. Advertisement is a way of communication which communicates the product
features to their customer (Hazlett, 2010). The Softera Company should select
internet advertising for their newly launched software just because the
software can run only though computer and advertisement on the internet will
automatically filter computer users to the company who can buy their software.
Online advertising for software will be helpful for the company to have any
impact on the people and they could be inherently motivated to buy this product.
In twenty first century advertisement becomes a need for every business,
without advertisement a company could not reach more customers or customers
other than the home country. Online advertising has been suggested to the
Softera Company just because their product can only use with the help of
computers (Holm, 2006).
Controls
Company has also set their review
program in which their managers and other senior authority will assess whether
the plan is making progress towards the goal or not. The review is helpful for
the company as they will able to identify the weakness of their activities
which can be correct at the right time. According to the company, review is
necessary to find out that what the management team is doing and is it
profitable or not for the company to work on this particular marketing plan
(Muhammad and Alwi, 20012).
Selection of a Distribution
Channel:It
is necessary to identify distribution channel in their marketing plan just
because distribution channel is associated with the price of the product.
There
are lots of distribution channels channel available in the market such as by
Air, by surface, by train or ship, the Softera Company has to select a
distribution channel for distributing their product, which is cheap and tie
efficient (Grant, 2011). Distribution channel could be different for different
customers for example for a manufacturer is should be time effective just
because they purchase in bulk quantity and for retailers only cost effective
channel can be considered. The Softera Company should have to outsource
distribution services to a third party so that it could be easily dispatched to
their customers (Hart and Johnston, 2005).
Conclusion
On the basis of the findings of the
above marketing plan, it can be concluded that marketing plan is an important
tool for a company for marketing and promoting their new product in the market.
The SofteraCompany has introduced a new software in the market, which is helpfulfor
every business to find out the future demand for any product. The above
presented marketing plan is really helpful and based on research so it can be
used by the company for their new product.
References
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P., Fill, C. and Page, K. (2011) Marketing.
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23 Feb 2015].
Dahlen,
M., Lange, F. and Smith, T. (2010) Marketing
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