Executive Summary
Select Softwares is an information technology company, which has been in operation for the last three years. The company develops softwares for its clients and potential customers. Together with its directors, the company has developed a marketing plan to introduce a new product in the market to set direction and seek more funding. Currently, the company has over 100 clients and with the development of the new product, the company seeks to establish a new customer base in the competitive industry. Select softwares headquarters is located in New York. Notably, the company develops softwares but due to increased cyber security threats, the company has decided to develop complex security software for its customers and potential clients.
Company Description
Select softwares began its operations three years ago. Mike Deen, Lucy Wells, and Nick Newman who had initially been employed in different companies decided to create their own business. Mike and Lucy are IT graduates and were working in a technology company where they gained diverse experience. On the other hand, Nick worked as a marketer in Tour Company and his experience in marketing has greatly helped in increasing the company sales.
Select Softwares reflects Lucy and Mike’s passion in technology. They are both IT professionals who have decided to indulge in the technology business. Nick together with the company employees has played a pivotal role of marketing the company products. Select Softwares currently sells softwares to small and mid-sized businesses, but lately the firm has been expanding targeting big businesses. Due to its quality products and support services, Select Softwares has gained a large customer base in and outside the country.
Mission
Select Software is committed to be a leading software developer. The company’s main dedication is to develop security softwares and allow its customers to work without fear of hackers or compromised sytems. Additionally, the company desires to create more user-friendly software.
Vision
To be the leading and most sought after company in the software development industry.
Competitive Advantage
Select Softwares’ aim is to achieve a sustainable competitive advantage by providing high quality and user-friendly products, which the competitors cannot duplicate with ease. Already, the company has established a strong customer base based on the development of quality and high value systems and softwares that have met customers’ diverse needs. The firm also create a sense of community to customers, which make feelpart of the orgation. Select Softwares ensures delivery of the right software and provides the needed support. The company is dedicated to building competencies through marketing, increase products, and improve the quality of the software already in the market. Thus, through the formation of strong relationships among retailers, consumers, and distributors, the company will create a maintainable advantage over its rivals.
Situation Analysis
- Economic Forces. Most of the firms around the world are recruiting in-house developers to design and develop customized software. Since most companies have undertaken this channel to solve technological issues, some issues related to security solutions can be offered by tech companies. The in-house software development is expected to continue thus slowing down the profits and growth of technology companies.
- Political Forces. Select Software may not easily be affected by politics unless in a presence of political statement or a relationship. Nevertheless, none of such occurrence has been evident.
- Technological Factors. The continued growth in technology has had both negative and positive effects on the business. The advancements in technology have brought about new, cheaper solutions to the market that are readily available online. However, such advancements have enhanced business growth, making it easier for the firm to reach more people and provide support remotely.
- Social-Cultural Forces. Since the society has become too busy with less time for leisure. Therefore, it is important to have software that is convenient and easy to use. In addition, the product should save time to fit clients’ needs. Thus, Select Softwares Company has ensured that all its products are easy to install and use. Notably, the world is moving towards paperless culture and our company is working hard to meet such market needs.
- Demographic Factors
SWOT Analysis
Strengths
- The ability to differentiate products has resulted in strong marketing orientation, commitment to quality, and customized products and support services.
- High number of return customers, which proves customer satisfaction. In addition, a word-of-mouth communication that enhance an almost 30% increase in business for every year.
- The good relationship between customer and the employees have generated businesses for the company due to quick responses to customer needs.
- The wide experience of managers and employees has contributed to knowledge of a product needs, standards and quality, and a common goal throughout the development process.
Weaknesses
- High rental costs for the business premise.
- Cash flow problems due to late paying customers and bad debts.
- Single-sourcing for Select Software may expose the company in an event of a disaster or issues with its main supplier.
- Small number of employees who slow down business development.
- The company is usually reactive rather than pro-active due to dependency on the word-of-mouth approach for marketing.
Opportunities
- The company may tap into the advertising market, which is growing widely in the United States.
- Technological advancements have made people’s computer become a commonplace and this makes information management to gain popularity, an area where the company can exploit (Rust, Lemon, & Zeithaml, 2004).
- The distribution of company-based computer calendars distributed annually creates an opportunity for the company to create new relations in other markets.
- To offer premiums and incentives to customers to develop relations rather than just closing sales.
Threats
- Theft of trade secrets and piracy through copying are usually difficult to control.
- The re-engineering and outsourcing trends within the management may change the traditional relationships with distributors, brokers, and dealers thus affecting them adversely.
- The heavy dependence of promotional items to do specialty advertising may result to short life cycle.
- Single sourcing may negatively affect the business if the supplier is faced with financial crisis or when relationship are affected(Rust, Lemon, and Zeithaml, 2004).
- Strong competition from the paper calendars and other promotional materials.
Description of the New Product
Given the ever-increasing cyber-security issues, the company has decided to develop antivirus software for its clients. The new system will be customizable according to the customer’s business needs. The software will have a single central point where the administrator can view activities taking place within the organization systems. This will make it easier to monitor security threats from a single point. Additionally, if a threat is identified, the software can isolate the affected gadget. The goal is to reach out to many clients, especially given that this is an IT company and the imminent cyber security threat can convince customers and businesses to purchase the product.
Marketing Strategies
Select Software is in the business of making other company’s operations simple by providing IT services. Other than formulating market oriented and customer focused mission statement, the company should have an objective of ensuring a cumulative growth of profits to about 50%.
- Target Markets 1: The Company mainly targets stand-alone and large manufacturers of big organizations who have extensive dealer, broker, and distribution networks.
- Target Market 2: The non-manufacturing and nonindustrial segments are also a target market. They include, financial sector, such as banks, medical services, and financial planners.
Given the markets needs for a safer internet and cyberspace, the company has a wide market individual. clients Thus, the main reason of creating and marketing new products is to solve and satisfy customer needs (Wood, 2005). However, to enjoy wide profit margins, the company has decided to target the large or medium sized companies.
Product Differentiation
The cyber security product offered by Select Softwares is unique and can be administered from a single point, different from how other operators, especially in large organizations. Additionally, the software can be remotely installed and managed from the administrator’s panel. Hence, the entire process is easy to install and use and requires minimal administration.
Marketing Mix
- Product Strategy. Select Software Company develops a number of systems. The company is contracted to develop custom software for given organizations. The firm attributes the growth of its market to the the ability to meet client needs and exceed their expectations (Cravers & Piercy, 2006). Therefore, such a competitive advantage might not be copied easily by the competitors.
- The company employs direct and internet marketing. The products offered by Select Softwares can easily be downloaded from the company’s website and installed at the given premise. Additionally, with the new program, it will be available online with clear instructions on how to install and use. The online availability of the software is a benefit to the company.
- Pricing Strategy. The pricing of the company products has competition in mind. Thus, Select Softwares ensures its prices are attractive and affordable to its customers. Product value reflects on the premium cost (Malhotra, Hall, Shaw, & Oppenheim, 2006). However, the company should be sensitive in the price elasticity for its products and overall demand.
- Given that a high percent of Select Software products are re-ordered annually, the promotion should mainly focus on new products, which should be done through direct-mailing, publications, and through the media.
Social Responsibility
The company is dedicated to giving back to the community by making a positive contribution towards environmental conservation programs. The long-term goal for the company is to create and fund its own environmental conservation program. Through this, the company can gain people’s trust that may translate to more business for the company. The company also offers scholarships to students undertaking IT-related studies and upon completing their schoolwork, they are offered internships in the company where they gain the needed experience and knowledge. The social responsibility program is important in creating awareness and marketing the company.
In conclusion, Select Software is an information technology company that focus on developing IT solutions for its clients. However, due to expansion and growth in technology, the company has been expanding by launching a new cyber-security product for its customers. Due to increased cyber threats and the need for a safer internet space, the product is expected to bring profits to the company and meet the clients’ needs.
References
Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 6). New York, NY: McGraw-Hill.
Malhotra, N., Hall, J., Shaw, M., & Oppenheim, P. (2006). Marketing research: An applied orientation. Pearson Education Australia.
Rust, R. T., Lemon, K. N., & Zeithaml, V. A. (2004). Return on marketing: Using customer equity to focus marketing strategy. Journal of Marketing, 68 (1), 109-127.
Wood, M. B. (2005). The marketing plan handbook. Prentice Hall.
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