Executive Summary
Eureka Software Inc. was started on 12th October, 2000. It has grown to become one of the leaders in the industry in terms of both market share and profitability. The company specialises in the customised development of software applications for various business needs. For instance, it customises supply chain management networks and management information systems for various clients. Currently, the organisation is facing increased competition from rivals in the industry, especially the upcoming entities.
Consequently, the management seeks to implement a marketing strategy capable of addressing current needs and business objectives. The following marketing report provides a comprehensive coverage of Eureka Software Inc. The strategy explores the company operations and environment. In addition, it proposes approaches that can be used in marketing and product promotion. The marketing mix for Eureka Software Inc. is reviewed and relevant strategic measures recommended. Ultimately, the report explores some of the ethical challenges the company encounters in international markets. The limitations of the report are also reviewed.
Introduction
Eureka Software Inc. is a leading developer of business applications. The organisation is based in London. It operates in a very dynamic business environment due to the rapid technological advancements in both hardware and software. The development of new hardware is especially a major driving factor for strategic plans of future marketing.
Over the past 5 years of operations, Eureka has evolved into a leading entity in the industry. It focuses on the generation of customised business applications. For instance, the organisation deals with high quality management information systems, personalised calendar applications, supply chain management systems, and other business-to-business specialty software products.
The company is in need of a marketing strategy that will enable it keep up with the changes in the market. In addition, small software development companies are coming up and eating into the company’s market share. Consequently, the proposed marketing strategy would enhance Eureka’s competitive edge in the market.
Marketing Strategy: Objectives and Goals
Eureka Software helps other organisations to become more productive through the provision of relevant information technology solutions. The company is guided by mission and vision statements that are market oriented and focused on the customer. One of the key objectives of the company is to raise its cumulative growth in terms of net profits by at least 40% in the next 4 years. The growth should emanate from development of products targeted at unexplored market segments. In addition, enhancing quality at reduced costs and vigorous marketing will help Eureka attain this objective.
Another major goal is improving the company’s understanding of current customers’ needs and how to meet them effectively and profitably. Currently, 70% of the entity’s revenue emanate from reorders and client referrals. Consequently, it is apparent that the company meets the needs of its existing clients. Apart from capitalising on these past successes, Eureka Software Inc. marketing plan also seeks to create new products. The products should not only utilise the current technology and equipments, but also the present knowledge base.
Competitive Advantages: Strengths and Weaknesses
The relatively satisfactory performance of Eureka Software Inc. is attributed to the organisation’s competitive advantages. In essence, competitive advantage refers to the superior positions held by an entity in relation to competitors (Jain 52). Competitive weaknesses, on the other hand, are the inferior qualities of an organisation in comparison to the rivals (Jain 52).
Eureka Software has been operating in the market for a relatively long duration of time. As such, the company possesses a knowledge base that is unrivalled by most of its competitors. In addition, the firm has mastered the market trends, making it a leader in terms of developing and implementing new technologies. The product differentiation strategy employed by the company has resulted in a strong market orientation. The orientation is complemented by outstanding support services and product customisation. The competitive advantage is apparent in the relatively high re-order rate and client referrals regarding the company’s products (Jain 54).
As product lines, business applications and management systems are seasonal in nature. Most entities require these products during the first two quarters of the year. As a result, bottlenecks in relation to productivity and cash flows generate strain on the facilities and personnel during this period. In addition to this competitive weakness, Eureka Software’s product line, as well as its customer base, lack diversification. Consequently, the company relies heavily on reorders, leading to too much complacency and increased opportunities for competitors. In addition, development of products that are alternative to those offered by the company can push it out of business (Stanwick and Stanwick 45).
Currently, Eureka has a small number of employees. Apart from fostering camaraderie, the workforce becomes an impediment to the development of the company’s business since there is little room for new and fresh talent. The marketing efforts made by the firm also seem to be more reactive than assertive. The reason for this is the company’s overreliance on client referrals and word of mouth for new business (Stanwick and Stanwick 44).
Marketing Mix: Product, Price, Place, Distribution, and Promotion
Products
Eureka markets business applications for management information systems. It also works on business-to-business applications. Other major products of the company include supply chain management and office automation systems. Eureka offers both readymade business solutions and software packages (Jain 54). It also provides personalised products as per the client’s requirements. Some of the intangible attributes of the company include its ability to anticipate clients’ needs and speedy response to their demands. Competitors find it hard to copy these intangible characteristics. As a result, the company enjoys a significant competitive advantage.
Price
Price refers to the amount required to purchase products and services offered in the market. In relation to pricing, Eureka engages in high quality specialty marketing. To this end, the prices of the products are based on customised needs. Premium prices reflect the value of products and services (Gilligan 99). Eureka needs to be sensitive to the elasticity of prices in relation to its products, as well as the consumers’ demands.
Distribution
Currently, Eureka adopts direct marketing for its goods and services. The products are generally compact since they are software. In addition, various shipping services, such as Postal Services and United Parcel Service, are used to distribute the product from a central location. Consequently, this ability to ship from a central location provides the firm with a significant advantage in the market (Gilligan 83).
Promotion
Majority of Eureka Software’s customers place subsequent orders. As such, the company needs to direct most of its promotional expenditures on new products. The objective can be achieved through advertising in specialty and business publications, trade journals, company websites, social media platforms, and direct mail. Personal selling of old and new products should also be encouraged. To this end, performance in sales is rewarded through bonuses and such other incentives.
Uncontrollable Environments
Eureka operates in a very dynamic computing environment. The needs of the customers are evolving rapidly. As such, the uncontrollable environment within which the company is operating is characterised by factors beyond its control (Werner and Weiss 98). Economic forces constitute one of the major uncontrollable variables in Eureka’s marketing environment. Currently, businesses operating in the global market need to cut expenses due to inflation and high costs of production (Werner and Weiss 99). The company can deal with this problem by reducing expenditure on mass advertising, such as television and newspapers. In addition, it can focus on specialty promotions.
Technological forces impact significantly on the operations of Eureka Software Inc. in the industry. The development of information technology hardware components for businesses with software packages poses a huge threat to the survival of the company. An example of such developments is Personal Information Managers (PIMs). The company can counter these forces through the development of superior products. In addition, Eureka Software Inc. can enter into contract with business hardware manufacturers in order to develop applications for them (DuBrin 45).
Target Marketing
The marketing plan highlights the target markets that can help Eureka Software Inc. attain its strategic objectives. The future intended markets for the company will determine the success of the marketing strategy.
Target Market 1
The first segment that Eureka should target is made up of the hardware manufacturers of office equipments, such as personal computers and servers. The organisations include, among others, Dell, Apple, Lenovo, and Hewlett Packard. By partnering with these organisations, the company can facilitate the development of programmable hardware equipments for which it can create assisting business software (Gilligan 34).
Target Market 2
The next target for Eureka is the non-industrial and non-manufacturing segments of the business-to-business market. The segment exhibits extensive customer networks. It is made up of, among others, healthcare providers, financial planners, and banks. Consequently, the organisation will embrace new products, especially specialty ones (Gilligan 99).
Target Market 3
The third segment is made up of large manufacturing corporations and their stand-alone production divisions. Such organisations have extensive distribution networks with their dealers, brokers, and customers (Gilligan 88). Consequently, the organisation will exploit the opportunity of developing software solutions for these networks.
Buyer’s Behavior
Buying behaviour entails understanding and determining customers’ needs and their motivation to purchase (Gilligan 214). Understanding buying behaviour enables sellers and producers to influence this consumer process. Eureka Software should use the information processing model to determine buying patterns among the consumers. The key consumption behaviour in relation to Eureka products is influenced by technological advancement. Consumers are going for simple but powerful solutions for their business needs. For instance, Office Automation Systems should be fast and easy to learn and use by all personnel. By exploiting this major behaviour of software buyers, the company can leverage itself into acquiring present and future contracts for business solutions.
Marketing Research
Marketing research will focus on the collection of information to gain insight into the needs of customers and industry trends. Eureka should carry out this research through surveys and review of reports from contracted surveyors (Gilligan 213). In addition, the company should review feedback from customers through mails, interviews, and post sale services.
Perceptual Map
Eureka Software Inc. should use perceptual mapping to determine the opinions of consumers with regards to its products. Respondents who have used the company’s products will be required to share their experiences. Some of the questions that the company should pose to the customers should be based on the price and performance of the software. The results are then transferred to a perceptual map based on a given scale. Finally, the findings are used to improve future products (Jain 88).
International Marketing
Contemporary local and international markets present business managers with numerous ethical dilemmas. The management at Eureka Software Inc. should be ready to undertake various moral considerations. Some of the ethical issues in the international market include respect for basic human rights, avoiding corruption, and discouraging industrial espionage (DuBrin 89; Stanwick and Stanwick 123). The management will need to highlight these and other elements to develop strategies to use in pursuing the objectives of the organisations.
Conclusion
As a company, Eureka Software Inc. is advantageously positioned in relation to market competitiveness. The firm is a leader in the software development industry, especially due to its implementation of cutting edge technology. However, it is essential for the company to adopt a new marketing strategy given the growing competition in the industry. In addition, market trends mean that Eureka should not continue pursuing outdated strategies, which do not identify with the current industry requirements. The proposed plan provides comprehensive marketing approaches needed to enhance the survival of the company in the software engineering sector.
Limitations of the Strategy
The major limitation of the proposed approach is its failure to provide for future flexibility in the company’s operations. The firm may decide to exploit both the hardware and software development industry segments. In addition, the strategy does not incorporate the budgetary element needed to implement it.
Works Cited
DuBrin, Andrew. Essentials of Management, Boston, USA: Cengage Learning, Inc., 2008. Print.
Gilligan, Colin. Strategic Marketing Planning, London, UK: Taylor and Francis, 2009. Print.
Jain, Shubash. Marketing: Planning and Strategy, Stamford, Connecticut: Cengage Learning, 2009. Print.
Stanwick, Paul, and Sarah Stanwick. Understanding Business Ethics, Boston, USA: Prentice Hall, 2009. Print.
Werner, Kurt, and Stephen Weiss. The New Black Book of Brand Companies, Bucharest, Romania: Aquila Publishing House, 2004. Print.