MICRO-TECH, INC. MARKETING PLAN 1
Micro-Tech,Inc. Marketing Plan
Micro-Tech,Inc. is a small company in its first year of existence. It waslaunched on November 6, 2015, primarily as a software company. Thecompany has approximately one year in existence now. Micro-Tech, Inc.is a company that sells customized calendar programs and otherrelated products to technology businesses that use the software intheir promotional activities. A total of 18 employees working at thecompany experience scheduling difficulties considering the company`sbusiness is seasonal, and only the months of October, November, andDecember experiencing high demand. During the other months, theemployees are often idle. The business is in its first year ofoperation with its main challenges being how to make profits andensure better utilization of resources during the off-peak months.
The company`sevaluation of its internal strengths, weaknesses, opportunities andthreats will be the baseline for its marketing plan and strategicanalysis. The plan will focus on Micro-Tech.`s growth strategy bysuggesting different ways of the company will build the currentcustomer relationship. Additionally, the company will also count onthe development of other new products and services that will targetspecific customer niche. Because Micro-Tech, Inc. has been marketinga product, which is used mainly as a promotional item by itscustomers, it now is regarded as a business marketer.
Micro-Tech, Inc.is a commercial printing and software company, which has evolved tobe a seller of high-quality and customized calendar software andother relatable specialty products. Over the past one year ofexistence, Howard Harvey started the company with the intention ofturning it into one of the most successful printing and SoftwareCompany. In the near future, and because it is a family business, thecompany plans to involve the family members.
Competitiveforces: In the customized and specialty industry ofadvertisement, the competition is a lot stronger on the local andregional sphere, but somehow and somewhat weak on the national level.For the industry, there is difficulty when accounting for the salesfigure as a whole because there are few business transactions to beconducted on the national spectrum.
In the calendar industry, the competition is much stronger,especially in the printing and paper segments, but is weak when itcomes to technology and software segments. In the current market,paper calendars represent a dominant share of the market of anapproximated 90%. However, technology and software sections aregrowing at an encouraging pace. The remaining 10% of the market shareis currently divided among different companies. Micro-Tech, Inc.,which holds a mere 15% of the calendar market on software, is theonly business, which handles customers that want software calendar onthe national level. While there is a gradual increase in popularity,the software-based calendars present an additional competitive edgein the market.
Economic forces: On the national level, numerous companieshave gradually reduced their immediate and overall budgets onpromotions as they continue to face the huge demand to cut on therising expenses. Despite all that, the majority of these gradual cutsand reduction of expenses have occurred in the mass media advertising(newspapers, television, and magazines) budgets. There is acontinuous shrinking of the overall budgets on promotions, and whileit does, numerous companies in the same industry as Micro-Tech, Inc.are experiencing a divergence in the larger percentage of the overallbudgets of specialty advertisements and sales promotions. The overalltrend is also expected to drag forward as a slow-growth and weakeconomy, which will force these companies to pay more attention tothe quality they have received from the promotional dollar. Thisvalue can be provided by the specialty advertising, for example, theone done on the calendars.
Politicalforces: Political influences on Micro-Tech, Inc. arenon-existent, and other political affiliations are expected to beminimal in the interference of the company`s operations.
Legal andregulatory forces: The Company`s past one year in operations havebeen focused on the payment of "junk mail." Micro-Tech,Inc.`s large percentage of promotional and specialty advertisementitems are distributed by use of mail while a few of these productsare considered to be junk. Even though the label may be attached tothe kind of products Micro-Tech, Inc. makes, the challenge is ofusing "junk mail" is that it falls on the company`sclients, and not, on the whole, company buy its own. The legislationrules may be presented to curb every tide that would come withadvertising done and delivered through the same mail. The fact wouldremain on the fact that a lot of companies are trying to divert theirpromotional dollars towards specialty advertising, which indicatethat most of the companies are not adamant over the potentialincrease in legislation.
Technologicalforces: One of the major emerging trends in technology isinvolved with the PIMs (Personal Information Managers), or the PDAs(Personal Digital Assistants). Roetzer (2014) defines PDA as ahand-held device with its size similar to a calculator. The largecalculator can store a lot of information, which includes addresses,personal notes, and calendars. Within the company, some of the PDAshave the ability to send letters through microwave communication. Asmuch as this trend continues, the current calendar products wouldhave to be adaptive in that it will have to match the integrated newtechnology.
Socio-culturalforces: In the current society, the consumers have minimal timefor either leisure or work. According to Harvard business review(2013), the current hallmarks of a successful company are founded onthe availability, profitability, and the convenience, and theproducts` ease of use. In summary, if the products fail to save timeand are difficult when using them, the clients or consumers arelikely to ignore or disregard them. Micro-Tech, Inc.`s seeks tocreate calendars while integrating technological for efficientsoftware towards fitting into the consumers` preferred products. Thecompany`s projections are its movement towards a paperless community,establishment dependency on the computers, and automating repetitivetasks.
Micro-Tech,Inc.`s Target Market (s)
By paying attention to commitment and dependency to service,Micro-Tech software continues to implement a distinct niche indifferentiation strategy effectively in some way a diversemarketplace. Micro-Tech, Inc.`s ability to distinguish its productsand service has immensely contributed towards its major returns inits one year in operation. The company`s target market comprises ofmanufacturers and manufacturing divisions of some of the largestcorporations in its location. The company does this by moving itsproducts through brokers, distributors, or dealers. One of thecompany`s most profitable products is for a personal computercalendar, which is a software program. The program can be woven tomeet the clients` needs through logos, artwork, and text. The clientswould use this calendar`s software as one of the promotional tool,which provides a disk that the clients` as a premium foradvertisement. However, the calendar software has ever been producedfor resale.
The company`sproduct, calendar software, began as one of the ancillary products toMicro-Tech, Inc.`s commercialized printing business. Because of theproliferation of the personal computers and the continual growth ofglobal technology, the PCs` calendar will soon become more profitablefor the Micro-Tech, Inc. more than its desktops and wallpapercalendars. All this resulted in the sale of equipment andcommercialized printing machines to all the employees. Micro-Tech,Inc. has continue to maintain that relationships on the long-term,especially with its former employees, who have contributed to thecapabilities to produce computer disks. Additionally, the companyserves as the primary supplier of complete goods. Micro-Tech, Inc.`sstaff pays attention to further marketing and development of thecomplete software.
TheMicro-Tech, Inc.`s Current Performances and Objectives
Micro-Tech, Inc.`ssoftware sales staff representatives focus on encouraging thepotential clients while using a template for demonstration disk,assist them to establish the calendar concepts. Immediately the salesare completed, Micro-Tech, Inc. finalizes on the concept, whichinclude designing, copyrighting, and demonstrable disk customization.All the specifications are then sent to the main suppliers, who arelocated about 500 miles away, a place where the productions of disksare carried out.
From its competitors, what differentiate the company are thehigh-quality services it offers its clients. In addition, the diskscan be sent to all the specified locations with respect to thecustomers` specifications. Since customization and productdevelopment of this kind can demand significant effort and time, inparticular towards the last months of the first year of operations.Micro-Tech, Inc. continues to pursue a particular strategy of firmmanagement growth deliberately.
Micro-Tech, Inc.`smarkets their main product on the basis of the company`s specifies.In its first year of operation, it has an approximated 90% annualreorder, while the average reorders for customers` relationshipstands at about four months. It the company`s first three months, itwas difficult to handle the customers. A lot of time was alsoconsumed in sales and development of the product brand. The rest ofthe months were a little profitable.
Currently, thecompany is debt free apart from the mortgage placed on its facility.However, an approximated 80% of the company`s accounts that arereceivable were billed during the last two months of the operationsin the previous calendar year. For annual account billings, and inaddition to the added account of its sales during the pick months, itpresented special challenges to the company. In the meantime, theneed for money to ease operations makes it necessary for Micro-Tech,Inc. Company to borrow a huge amount of money to offset the perioduntil the clients billing occurs.
Micro-Tech, Inc.`smarketing objectives are comprised of both the profits and revenueincrease by an approximate 10% over its first month of operations.Revenues should be in a position to exceed $2 million, and theprofits are expected to meet the $500,000 target.
Micro-Tech, Inc.`s product differentiation strategy is because of the firm marketing orientation, products customization, and commitment to producing high-quality products and support services.
The company has little turnover among its staff members that are well-compensated and are liked by the customers. The company`s relatively small size of the employees helps to promote the camaraderie with clients and co-workers. It also fosters quick response and communication to the needs of the clients.
The company has nurtured a long-term relationship with its main supplier, which in turn has resulted in equal knowledge of what the products require, quality standards adherence, and one common vision throughout the product and development process.
The company`s high percentage of business re-orders represent a satisfied customer base and at the same time commendable word of mouth mode of communication. The mode has helped generate some 3% new businesses every year.
The company`s highly centralized hierarchy of management and the lack of backup in managerial activities may help impede growth and creativity. There are few people who hold within the company that has much knowledge of the same.
Despite the long-term success and relationship with its main suppliers, the whole process of single-sourcing could make Micro-Tech, Inc. more vulnerable in the event that a strike, natural disaster, or the current suppliers` dissolution takes place. Here, the company should put into consideration contingency plans for the suppliers.
The company`s seasonal nature of the whole product line establishes bottlenecks in the cash flow and productivity, personnel`s excessive stress on places, and the strains facilities.
Both the company`s client base and bottle line lack diversification. The company`s dependency on the current rates of reordering could invite competition generate complacency or customer satisfaction false sense. The product`s development, which could turn the entire software product obsolete, would more likely put Micro-Tech, Inc.`s presence out of the industry.
While the company`s infringed size of the employers` nurtures camaraderie, it also surpasses growth and any new business development.
Micro-Tech, Inc. is a company that is creative and is assertive in its efforts in marketing since its main reliance on the positive mode of communication for establishing a new business.
Micro-Tech, Inc.`s current equipment is over-crowded. There is more room for adding more employees or other new equipment.
In the United States, where the company is located, advertising expenditures exceed $100 billion annually (Harvard business review, 2013), more than $20 billion is used in direct-mail advertising, and an additional $20 billion is used for specialty advertising. The Micro-Tech, Inc.`s potential growth lies on the significance of the market.
The advancement in technology has not only created time for the Americans while bringing greater efficiency but also, have an additional increase in the level of depression and stress in their lives. In today`s world, persona computers are a part of everyday lives, and the popularity of information managers have doubled.
According to Harvard business review (2013), the United States companies look for ways that are aimed at developing strong customer relationship, which could be in the form of gifts or acceptable premiums, which are useful to the customer.
All computer-based calendars are efficiently distributed both on the national and global level. The business` globalization helps create many opportunities, which help establish new customers` relationships in the foreign markets.
Right-sizing, reengineering, and outsourcing company`s trends over the last six months, especially in management, may alter some of the traditional relationship channels with dealers, distributors, and brokers or eliminate them entirely.
Calendars, according to Roetzer (2014), are a generic product. The knowledge, technology, and equipment needed to create such an item, which is minimal even a computer-based one. Additionally, there is a possible entry of new competitors into the industry, which presents a huge threat to the company`s existence.
Software piracy and theft of trade are difficult to control, especially through unwarranted copying.
Specialty advertisement by using promotional items relies solely on ideas and gadgetry, which are different and new. As a result, the life cycles of the product become quite short.
The process of single-sourcing can turn out to be quite detrimental and disadvantageous to the company, especially when the relationship between the buyer and the supplier is damaged of if the company that does the supplying experience financial difficulties.
From the use of promotional items and old paper calendar, the competition is strong.
SWOTAnalysis and Recommendations
By embracing theuse of technology and its advancement, the company has the desire tocontrol time for the creation of the potential need for usingcomputer-based calendars. Micro-Tech, Inc. is a company, which ispresented with more opportunities for the growth of the business,especially during the peak months of operation. The company currentlyhandles both human and capital resources efficiently despiteconstraints it faces.
Micro-Tech, Inc.software should assist in modifying its hierarchy in management,which will help empower its staff members a more decentralizedmarketing within the organization. Additionally, the company shouldbe in a position to discuss future growth of its strategies with itsmain supplier, while developing a contingency plan to deal withunpredicted events. There is also a need for other possible satelliteequipment that is found in other geographic location to be exploredfurther.
Micro-Tech, Inc.should also consider the diversification of its line of productstowards the satisfaction of the new market niche and the developmentof non-seasonable products. The company should also considersurveying the state of its current customer base and how they wouldgain a reasonable understanding of the need to change their desires.
Micro-Tech, Inc.is focused on assisting other business in marketing their productsand services. Apart from the formulation of customer-focused andmarket-oriented mission statement, the company should focus onestablishing an objective to acquire cumulative net profit and thegrowth of an approximately 50% over the four or five years. 15% ofthe growth should, at least, come from the products andnonmanufacturing clients that are either seasonal or are generallydelivered during the off-peak period of the calendar year.
To attain theseobjectives, Micro-Tech, Inc. should come up with benchmarkingactivities to measure its progress. The first one will be to attain adeeper understanding of the current clients. Since the company iscurrently benefiting with the 15% of the reorder rate, the rateshould be satisfying to the clients. The company should also use theacquired knowledge of its past success to market its products to newcustomers. In addition, to capitalize on its ultimate success on thecurrent customers, benchmarking should be implemented to improve thecurrent products. The implementation will follow the knowledgeattained based on the customers` specific opportunities and needs fora different but related product. The benchmarks should first bedetermined by carrying out marketing research and the company`sinformation system.
Finally, thecompany`s should analyze its billing cycle, in which it currentlyuses it to determine if there are other ways for billing accountsthat are receivable in a way that is evenly distributed over the nexttwo years. Alternatively, repeat clients may be willing to makeorders during off-peak cycles in return for added customer servicesand discounts. In addition, the company should create a totally newproduct line, which can reflect the quality of its currenttechnology, equipment, and knowledge base. The company should carryout simplified research, while it analyzes product lines and similaradvertising products, which are based on software, but notnecessarily relates to the calendars.
Target markets:Micro-Tech, Inc.`s target market is large stand-alone manufacturerswith a wide range of dealer, extensive broker, or distributionnetworks. An example is the customization of calendars with the TrustVentures a Chicago-based agricultural report dates institution. Thesecond target market is the nonindustrial, nonmanufacturing segmentsof the business market with an extensive customer base network, forexample, banks, financial planners, and medical services. An exampleof this is a number of many sporting manufacturer of goodsdistributed to specialty dealer business.
The third targetmarket is a direct customer base for market brands with licensingarrangement for seeing consumer goods. For example, the target marketwill focus towards those products with recognized brand and clubmembership like the Davidson motorcycles. The target market will beaimed at providing additional customized PCs` calendars. Finally, thetarget market will focus on industry associations, which hold regularmeetings with sponsor trade show, conferences, meetings, orconventions. For example, the national association like the AmericanMarketing Association will host meetings or conventions morefrequently. From one of these meetings, customized calendars willlikely be developed.
Products:Micro-Tech, Inc.`s markets will include calendar software andspecialty advertising to its customers. The company`s intangiblereputation involves its ability to attain or exceed the customers`expectations, the speed towards responding to the clients` wishes,and the anticipation of having new customer requirements. Micro-Tech,Inc. is given a competitive edge because of the intangible attributesthat are faced by the competitors.
Price:Micro-Tech, Inc. provides specialty advertising, which is woven toits clients` preferences. The product`s value and service are areflection of its premium prices. Micro-Tech, Inc., however, shouldbe sensitive when it comes to prices elasticity and the overallclient demands.
Distribution:Micro-Tech, Inc. applies direct marketing. Considering its product islightweight, compact, and non-perishable, it is possible to shift itfrom the main location directly to the client`s location via FedEx,U.S Postal Service, or United Parcel Service (Roetzer, 2014). Thefact that Micro-Tech, Inc. is able to ship to other multiplelocations for every client, it provides an asset when selling itsproduct.
Promotion: Since approximately 90% of the Micro-Tech, Inc.`scustomer reorders annually, the entire promotional expendituresshould thus pay more attention to offering a new product. Theofferings can be done by direct-mail advertisement practices andspecialty publications or trade journals. All the other remainingpromotional money could either be directed towards the personalselling of the current or new specialty products.
The financial expenditures, when compared with the planned goals and objectives, will be included in the whole project report. The following is the analysis of financial control and performance standards:
The entire budget meant for billing analysis, customer survey, and a new-product research will be quantified from the company`s initial 50% of the yearly promotional budget for the next financial year.
The budget breakdown within the entire project will be approximated at 20% allocation of the study in the billing cycle. The 30% allocation from the customer research survey and the development of marketing information system and additional 50% is allocated to the development of both the new products and product implementation.
Every project team is mandated with the reporting of all financial expenditure, which includes direct expenses and personnel salaries for the company`s project segment. The company`s marketing director will then develop and provide standardized reporting forms.
The company`s marketing director has a responsibility for the adherence to the entire budget, and will report on a weekly basis the report overages to the president of the company. In addition, any directed budget money is the responsibility of the manager as is required for every member of the project team.
The offering of the new project will be evaluated on every three months for the determination of profitability. The expenses incurred are distributed evenly over a period of two years by the calendar quarters. They will also be compared with the generated gross income during the same period.
The focus on finances would come from the competition the company faces. In the near future, the competition is projected to be based on the product prices, design, its widespread distribution, and the areas it is expected to be more competitive.
Finally, the company is expected to invest a total of $800,000 on its customized products and specialty advertising of calendars as noted in the previous recommendations. Micro-Tech, Inc. will then be able to achieve enough market shares towards its objectives of financial and marketing projections. In the next two years, the market is expected to improve, and the company`s costs are projected to drop with the increasing experience in unit contribution. One of the company`s challenges will be to keep track of the market`s tastes in software designs while paying attention to the finances on the innovative and creative designs.
To implement allrecommendations stated in the Micro-Tech, Inc. marketing strategy, alot of changes will have to take place. The first one involves theinitial research as what specific designs and products are morelikely be accepted by the customers, in addition to the seasonallyaffected specialty items and the type of brands the customers aremore focused on. The three changes from the most important part ofthe implementation process because it lays the company`s foundationfor ground work towards the continual production of the rightproducts for the intended market and the right timing at which thearrival of products will meet the market demand.
Secondly, thecompany`s step towards implementation of its objectives with otherdesirable brands should be carried out, while agreeing with thebrands. The product allocation and distribution centers should beestablished and agreed on. The whole step might take some time forproper implementation because of differing collaborative companiesand the process of distribution.
Once allocation and distribution are done, the company`s managementteam will have to establish particular locations, signage, pricing,and marketing of all its products. The Micro-Tech, Inc. marketingteam will also be required to make adjustments to its monthlyadvertisement procedure, and specialty processes to raise awarenessof the new products.
The whole selectionprocess will be expected to take place following the finalization ofthe marketing plans. The product choice process should pay attentionthat particular products will have strong penetration power into theexisting market with the highest overall size, and in addition whenthere is demand basis for products to be commenced. Finally, the lastphase of the company`s implementation of its objectives will be inits procurement department, with rollouts done by the procurementteam.
Through the utilization of directed research into the company`sflagship product and brand, there is a need for signing other brandpartnership and the implementation of its brand objectives. Theprocess will allow Micro-Tech, Inc. to move towards a new image, andthus, increase its brand presence among its customers. The company`sunique opportunity to entirely reinvent its one-year-old image shouldbe undertaken and the opportunities and possibilities in theprocurement should look continually brighter. For future success ofthe company, innovation will be the main resource for the Micro-tech,Inc. for success through tough economic times in the years to come.
For a betteranalysis of Micro-Tech, Inc.`s effectiveness of its marketing plan,it is important that the company`s actual performances with plannedobjectives be compared. For better facilitation of this analysis, themonitoring of procedures should be established for a number ofactivities needed to bring the company`s marketing plan to fruition.The evaluation of these procedures is part of, but not limited tovarious projections.
The firstevaluation includes project management concepts, which should be usedto evaluate the marketing plan implementation through theestablishment of time requirements, budgetary or financialexpenditures, and human resource needs. Secondly, the perpetualcomparison between the planned and actual activities will first bededucted every month in the company`s next one year of operations andagain in every three months after the completion of the first phase.The company`s team that performs business analysis will then reportsthe comparison between the planned and the actual business outcomes.
In conclusion,Micro-Tech, Inc. control strategy requires a well-executed designwith its generic principles for an effective mechanism that willretain a degree of common sense and flexibility. For effectivecontrol of its activities, the Micro-Tech, Inc. will achieve it byencouraging the participation of its management and staff teamthrough thorough consultation. The staff members could take part bysetting a number of targets.
By correctly applying the practices, the total involvement of allparties will enhance morale, develop skills, and promote ownership ofthe company. In addition, the company`s management will channel itsattention directly to needed areas. The whole process will involvecomplete benchmark and tolerance for all the operations. The criteriafor the targets should be measurable while making it a priority forall the products and services offered by the company. When theresources are costly and scarce, the need for evaluation and controlswill also guarantee a set of standards for the quality of theproducts in the company.
Harvard business review. (2013). On strategic marketing.Boston, Mass: Harvard Business Review Press.
Roetzer, P. (2014). The marketing performance blueprint:Strategies and technologies to build and measure business success.London: Emerald.