15 Jan

Marketing Plan For Web-Based ERP Software

PRINCIPLES OF MARKETING

Sample Marketing Plan For Web-Based ERP Software

By STANDING Tech Research Team / 2015

For Education Purposes Only

Table of Contents

1.0 Introduction.

1.1 Goals and Objectives.

1.1.1 Company Goals and Objectives.

1.1.2 Marketing Goals and Objectives.

2.0 Situation Analysis.

2.1 Market Description.

2.1.1 Segment 1: Open Source ERP for developers.

2.1.2 Segment 2: Simple ERP for small companies.

2.1.3 Segment 3: Full future ERP for medium companies.

2.2 Competitive review..

2.3 Distribution.

3.0 Strengths, Weaknesses, Opportunities, and Threat Analysis.

3.1 Strengths.

3.2 Weaknesses.

3.3 Opportunities.

3.4 Threats.

4.0 Objectives and Issues.

4.1 First-year objectives.

4.2 Second-year objectives.

4.3 Issues.

5.0 Product Strategy.

5.1 Positioning.

5.2 Product strategy.

5.3 Pricing strategy.

6.0 Marketing Strategy.

6.1 Marketing Communications.

6.1.1 Communication Objectives.

6.1.2 Communication channels.

6.2 Advertising.

6.3 Promotions.

7.0 Distribution Strategies.

7.1 Distribution Objectives.

7.2 Channel Design.

7.3 Direct Distribution.

7.3.1 Website.

7.3.2 Formal Channels.

7.4 Indirect Distribution.

7.4.1 Retailers.

7.4.2 Other individuals (Agents).

7.5 Other direct distribution.

List of Tables

Table (1) Business Factors with their affects and probabilities. 11

Table (2) Positioning.

Table (3) General Prices for the product

1.0 Introduction

Standing Tech. Company is software Development Company known with its highly customizable Web-based applications in major fields of business. Web-based ERP software is first product in that designed for (right to left) language specially and supporting UTF-8 data natively.

Web-Based ERP Software is modern, simplified, fully customizable Enterprise Resource Planning software that can be implemented in small and medium organizations. Web-based ERP is cost effective model of ERP that not require any client software to work, this capability enables Web-based ERP to run on all browsers in all operations systems.

This product gives a competitive advantage over other providers that not providing customizable web applications and not providing help and support services in customers’ language, this opportunity will increase revenues via some lines that will increase the profit and STANDING TECH. population.

1.1 Goals and Objectives

1.1.1 Company Goals and Objectives

Standing Tech. Company opening new investment projects by providing (Left to right) software with specialized GUI interface in parallel to its international software products. For this reason, Web-based ERP can be positioned as the first software in the market that even personal inexperienced users can use it.

– Opening new investment projects to increase revenues by 30%.

– Increasing sales for Hosting and Domain that came with Web-Based applications.

– Maximizing its population in the market via some free online applications so that increasing in commercial licenses expected by 10%.

1.1.2 Marketing Goals and Objectives

· Offering Different Versions of Web-Based ERP: providing custom versions of ERP according to customers’ requirements so that the strategy will focus on dynamic price to cover more customers.

· Offering Wed design: because Web-based ERP increasing customers, new opportunities will be available for Web design and hosting services.

· Offering IT Technical services: Offering IT consultancy for those companies that require outsource IT support.

· Offering Free Support and training: Offering free support for Web-based ERP will attract customers to select this product, because most international software company doesn’t have office in this region, so that by considering this GAP in current market, this product can be selected as the first (free support in customer’s language) in the market.

14 Jan

Click-only business in the highly competitive sector of the market

Click-only or pure-click business can be described as new company that conducting business digitally via Internet (online) by using e-commerce system without physical existence as firm (Philip Kotler and Kevin Keller, 2008 p.434) while click-and-mortar or click-and-brick business can be described as company that added new channel for marketing by using e-commerce or nay other business software. (Wikipedia, the free encyclopedia, n.d) and (Philip Kotler and Kevin Keller, 2008 p.434) from these definitions, click-only business is a company that lunched a website for all business activity by using e-Marketing, e-Purchase, and e-commerce; or any combinations of e-business modules that fits to the business objectives.

Click-only business uses a website as first step, starting from domain registration (choosing simple and beautiful word for the domain and them .com prefix that often used), usually website name is the brand name that reflects also in the domain name. The second step is good hosting service that provides reliable futures for long-run to process e-business modules with good performance. The third step is security system that includes (SSL certificate: for encrypting data between client and server, and using secure e-business platform on secure server). The remaining part that plays a big a role in click-only business is the Website (that integrated with the e-business), starting from basic things: website language, design and layout, and contents that accomplish business goals and objectives, for example: Community and communication sections (discussion board, feedback, simple voting and reviewing system, etc). All those points as whole will provide easy navigation through the website that helps visitors to easily find, compare, and buy products.

Highly-competitive Environment

Current online market (market-space) is highly competitive by its nature because of existing more International companies that distribute their products online directly or by using third-part companies like (Amazon.com, Ebay.com, Yahoo.com, or directly through Company’s’ websites). Considering this challenge, another issues also facing online business, for example: competitor can easily take business secrets and methods so that brand identity is difficult to establish and maintain, and building trust and ensuring security and privacy have proven most challenging (Sirkka L. Jarvenpaa and Emerson H. Tiller, n.d., p.1).

For click-only business in highly competitive sectors of the market, it require a good strategy for building trust within visitors to became customers, in regard to other factors that mentioned above, visitors must trust the website before buying any product, because later, buying process require visitors to enter their information like (Name, age, address, and Credit-card details, etc) that require a trust for competing the purchase, there are several factors that attracts visitors to trust website: Valid contact information including (physical address, land-line, e-mail) also using secure system for processing online transactions like (SSL and trusted Gate-way for shopping cart) that provides safety behavior against theft, hacking and any online issues.

In conclusion, click-only business is not just putting materials on website, products that offered online must exist also in offline inventory, and the company also requires building brand equity offline for building trust within customers. Finally, click and mortar is the effective than click-only, because integrating traditional business with e-commerce provides more benefit like: “potential cost savings, gains due to enhanced differentiation, improved trust, and potential extensions into new markets” (Charles Steinfield, 2002).

References:

  • Sirkka L. Jarvenpaa and Emerson H. Tiller (n.d.) PROTECTING INTERNET BUSINESS METHODS: AMAZON.COM AND THE 1-CLICK CHECKOUT [Online]. Available From: http://btl.mccombs.utexas.edu/IBM%20Course%20modules/bizmethpatents1.pdf (Accessed: 17 December 2011)
  • Charles Steinfield (2002) Understanding Click and Mortar E-Commerce Approaches: A Conceptual Framework and Research Agenda [Online]. Available From: http://jiad.org/article19 (Accessed: 17 December 2011)
  • Wikipedia, the free encyclopedia (2002) Bricks and clicks [Online]. Available From: http://en.wikipedia.org/wiki/Bricks_and_clicks (Accessed: 17 December 2011)
  • Philip Kotler and Kevin Keller (2008) ‘Marketing Management’, 13th Edition, Pearson Prentice Hall, ISBN-10: 0136009980
14 Jan

Affect on Internet on price considerations for: Airlines, Hotel Reservation, Book Sales

Internet changed more aspects in our life; communication, education, shopping, reading, and many other personal hobbies that came with internet, marketing is also changed, the marketplace changed to market-space (Tapscott Don, 2000), the space that holds infinite different things that everybody can surf it at any time, limitations were also changed; for buying an item we must go to the market-place, while, market-space just requires internet access and computing device, distances where became equal, and physical payment-receipt also changed to digital transactions.

Online resources provides more information that can’t be get in real-world, users can find target information through search-engines services, a chain of information that relatively unlimited, in few minutes, we can find and collect different prices for same products or service, any business realizing that fact, knows that customers definitely buying cheaper products with same quality, and also, distributions costs and expenses were also decreased by using online systems like e-commerce that approximately leads the prices to be decreased.

Airlines

Airlines services are approximately same, with regard to some special services and strategy, but overall service is providing flights for travelling passengers and/or goods to another place, basing on that point, customers are always price sensitive to airlines’ prices because at worst case, the seat place is suitable for few hours and designed for human beings. From this perspective, Internet will influence on airlines price consideration because “Internet facilitates competition, thereby creating downward pressure on prices” (Eugene Orlov, 2011, p.35) so that airline companies are in high competition.

Hotel Reservation

Classical methods of Hotel reservations are by contacting hotel-customers services or via special agents or other companies that provides tourism services, while by using online applications such as Hotel Management Software, it provides better management abilities that analysis all requests on demand and gives accurate results without conflict, then, customers can review hotel services by reviewing their service lists and comparing various prices with another hotels. Internet also influences on hotel prices because customers can find most hotels with similar services by using internet search, then, they can decide on lower price.

Book Sales

Generally, online books store database provides all information that helps customer to find and select their needs, without going to physical places, books can be reviewed and purchased online, in other hand, e-books can be delivered on demand after payment completed.

Price consideration for books sales limited to some restrictions that set by main publisher, the price might be fixed as exist in my country, books must be sold with fixed price in all cities and places, however, internationally, books versions and prices are vary according to general costs that requires by international retailers, and the transportation companies.

In conclusion, dynamic price strategy is most suitable for online marketing because customers can easily find same products with different prices, then, most companies are in competition because of the internet, then, price should be justified because customers will buy same product with lower price.

References:

  • Eugene Orlov 2011, ‘HOW DOES THE INTERNET INFLUENCE PRICE DISPERSION? EVIDENCE FROM THE AIRLINE INDUSTRY’, Journal Of Industrial Economics, 59, 1, pp. 21-37, Business Source Premier, EBSCOhost, viewed 3 December 2011.
  • Tapscott, D 2000, ‘Internet’s reach even extends to 4 P’s of marketing’, Computerworld, 34, 29, p. 30, Business Source Premier, EBSCOhost, viewed 3 December 2011.
14 Jan

Marketing Strategy : Customer Orientation Vs Competitor Orientation

Competition is the usual behavior that occurs between two or more parties, in business, competition is the way that such company provides better value to its products so that it became more popular than other companies. Customers usually choosing best products in the market, in regard to customer satisfaction, “the business unit should set up a marketing intelligence system to track trends and important developments and any related opportunities and threats” Philip Kotler and Keller (2008, p.50) so that each business require a proper marketing concept to consider all factors that affects the profitability, thus, marketing orientation is the way for aligning different approaches according to external environment (Richard A. Heiens, 2000, p.1).

Correct marketing concept is one of concepts that considering both customers and competitors, “it holds that the key to achieving organizational goals is being more effective than competitors” Kotler and Keller (2008, p.19) so that competitor orientation can be seen as one key points in parallel with customer orientation that leads the company to success in its business and high performance, thus, from that perspective, providing a good product that satisfying customer is not the whole win factor, because another provider might apply competitive advantage strategy to win the business.

Requirements for both orientations

Maintaining balance between customer and competitor orientations is the way that the company considers both orientations according to their affects on the company’s status in terms of performance for earning more profit for both short and long terms, the term balance might not mean equally applying both orientations, it will be more focus on one and less focus on other, for example: competitor orientation is more effective in developed market, and when the industry is good and resources are available; customer orientation is more affective (Kevin Zheng Zhou et al, 2007, p.316) the same case also stated by Richard A. Heiens (2000, p. 3) as described that customer focus is better for growing markets while competitor focus is better for stable markets.

In conclusion, managers should consider both orientations because each of them affects the company’s performance so that the firm can get advantages from both orientations (Homburg, C and et al, 2007, p. 14) so that maintaining balance between both orientations is challenge that manager can develop effective marketing plan in different cases by incorporating affects of both concepts into marketing plan and business strategy.

References:

  • Philip Kotler and Kevin Keller (2008) ‘Marketing Management’, 13th Edition, Pearson Prentice Hall, ISBN-10: 0136009980
  • Homburg, C, Grozdanovic, M, & Klarmann, M 2007, ‘Responsiveness to Customers and Competitors:The Role of Affective and Cognitive Organizational Systems’, Journal Of Marketing, 71, 3, pp. 18-38, Business Source Premier, EBSCOhost, viewed 19 November 2011.
  • Zhou, K, Brown, J, Dev, C, & Agarwal, S 2007, ‘The Effects of Customer and Competitor Orientations on Performance in Global Markets: A Contingency Analysis’, Journal Of International Business Studies, 38, 2, pp. 303-319, JSTOR Arts & Sciences IV, EBSCOhost, viewed 19 November 2011.
  • Richard A. Heiens (2000) Market Orientation: Toward an Integrated Framework [Online]. Available From:http://www.amsreview.org/articles/heiens01-2000.pdf (Accessed:19 November 2011)