Tera Tech is a Customer Relationship Management (CRM) solution provider whose target customers are the pharmaceutical industry. Tera Tech five-year old company is founded and operated by a 20 year industry veteran Jack Dwyer. Jack has leveraged his extensive experience to provide high quality product. Tera Tech’s focus is to renew the strategic focus and vision of the company to add value on the target market. Tera Tech’s competitive edge consists of their unusual ability to explain or teach complex technical issues to clients of all computing abilities.
The ability to translate complex computer ease into Basic English is an unusual and desired skill. This competitive edge allows Tera Tech to empower clients with new knowledge, making them feel significantly more comfortable in the computing environment where they now interact in so many activities. Tera Tech will offer computer support to clients of six major categories: RFP stage, implementation stage, post implementation, On-site, telephone, and email Support. These categories will comprise 95% of the operations. Tera Tech will rapidly gain market share by offering needed services, outstanding customer service, and reasonable prices.
Tera Tech is close starting their sixth year of being in business. The company has been successful but for continue success marketing is crucial. The company is pharmaceutical industry based and offers Customer Relationship Management (CRM) solutions. CRM evaluates relationships of the service and products by developing an entire picture of a company (Puschmann, 2001). Before discussing strategy for potential growth, Tera Tech has to comprehend where the company has been and where they currently are positioned. Tera Tech market analyzes in detail the needs of their target market. Afterward reviews the strengths, weaknesses, opportunities, and threats; which follow with details of some other key factors.
Tera Tech possesses good information about their customers and has some information about the competitors. The information will be used to better comprehend who are the customers, their explicit requirements, and how Tera Tech can better correspond with their customers. . Tera Tech has broken the markets into sections used by market research businesses.
The summary for Tera Tech’s clientele consists of the following geographic and demographic: Geographic’s – the target geographic are the current pharmaceutical companies in the United States. The total targeted geographic is pharmaceutical companies in the 16 continents. Demographics – CEO, IT Managers or the main decision makers for the companies.
Tera Tech is providing customers with comprehensive CRM expertise to a centralized market. Tera Tech tries to accomplish the subsequent benefits that are imperative to their customers. Comprehensiveness – Tera Tech seeks to offer a wide range of consulting services, allowing the customer to be served with any type of computer issue that they may encounter. Teaching ability- While the customer is interested in having their computer problems solved, most customers appreciate being empowered with new abilities and skills, giving them more control within their computing environment. Customer service- The customer must leave the session believing that all their needs were met in a manner that exceeded their expectations.
Many years of research were conducted: “AMR Research reported the worldwide CRM market was worth US$4.8 billion in 2005, up from $4.4 billion in 2004. On-demand CRM — a model in which a third-party provider hosts the software and delivers it as a service over a network — posted a growth rate of 50 percent between 2004 and 2005” (Leclaire, 2006.ï¿½ 8). “The Forrester Research survey of CRM customers in 2005 announced that only 29% of customers were content with the ease of their CRM applications integrating with existing data applications and sources. In addition less than 50% were satisfied that the CRM software met their business needs. AMR reports that Microsoft has an upper hand and could see greater adoption in the current market conditions. The firm’s customer management surveys find that Microsoft desktop tools consistently rank as the most pervasive customer management technology” (Leclaire, 2006.ï¿½ 10).
Taking all this information into consideration the trend of the market shows that CRM is a has a growing demand and competition will be getting truly tough as other companies such as Microsoft start turning towards more CRM services. Tera Tech needs to keep close tabs on the market trend and growth to make sure they stay ahead of the demand.
The SWOT analysis informs Tera Tech of opportunities and threats they may be facing and key strengths and weaknesses. The company looks at the SWOT and identifies that the company is in a sustainable in general position. They have strengths mainly in the information of software, service and training whish is what customers need. Tera Tech also has several striking opportunities in these same areas of expertise.
Competition comes in numerous configurations. The most major competition is companies who believe they do not need CRM assistance by any means, companies deciding to do channel and business development and market research in-house. Having in-house managers handle the functions directly. One key advantage with in-house development is that managers are already filled to capacity with everyday jobs; they do not have time for further tasks in new channel or market development. In addition, Tera Tech can in confidentially, make initial contacts and gather information in ways that the managers can not.
There are many competitors in the CRM industry. But not all competitors are industry centralized which does give Tera Tech the advantage over many in the pharmaceutical industry. One large competitor is iEnterprises; Inc. that provides CRM software — tailored to the industry. And have many of the larger pharmaceutical companies on their client list. The company also operates globally which gives them an advantage. IEnterpises announced in January 2009 that they are “reconfiguring their customer relationship management (CRM) systems via Software as a Service (SaaS). Hosted on IBM technology, iEnterprises provides CRM software — tailored to the pharmaceutical industry as an affordable service designed to allow smaller businesses significantly to increase productivity and reduce strains on time and staffed resources” (Levitan, 2009 ).
Direct competitors are the well known companies. There are companies’ offerings similar services that offer excellent programs at a lower cost that can reach the target market.
Indirect competition is all over the place. The most important is the decision to stay in-house and administer the service with the current staff. There are also companies offering cross-industry options, and many other potential. Services Tera Tech will offer computer support to clients in six major categories. These categories will comprise 95% of the operations. RFP stage, implementation stage, post implementation, On-site, telephone, and email Support. These categories will comprise 95% of the operations. The CRM program will help realize excellent contact and customer relationship management, allowing the sales force and business teams with contact to the latest client connections and company actions. The program will be customized to the company through straightforward, point-and-click interaction, reducing the hassle and elevated charges of additional CRM providers.
Keys to Success
The marketing position and product knowledge is the apparent key to success. Many possible customers would favor Tera Tech showing information on how the customer can have their product and value-added cost/benefit to their business. It is necessary for Tera Tech to make sure that once they have earned those customers that do not lose the customers confidence. To help achieve this, they must put in the effort to strengthen associations through triumphant marketing. They must keep in mind that they need to advertise the company, not just the service or product. The customers need to recognize they are working on a partnership with Tera Tech, not just ordering a box or people. The additional keys to success are: Exceed customer’s expectations, offer comprehensive, flexible services and address market needs.
Tera Tech is in a rough stage as a result of their competition having such a strong product. It is critical that they continue to take a powerful approach to serving the needs of the clients, but only expanding when the demand of the clients warrants expansion, not for the sake of just to expand. In additional another serious issue is making sure they have repeat business. Tera Tech can not construct the company on a damaged establishment; they have to have satisfied clients. Tera Tech can not afford to pay out the funds it would take to produce new clients frequently. Repeat business is constructed on the strong strategic mix which are excellence, clear communication, and following through. Tera Tech needs to see if they overcome the competition and advertise to previous and future customers the idea of comparing of quality and reliability. Tera Tech needs redefine their company to highlight the service and support the customers in due course need.
Tera Tech historically has been extremely profitable, but the customers are concerned about the current products which will impact the future. Financially the company has grown but Tera Tech has not performed research until the last year to see what was impacting the customers.
Innovative technology has developed into a powerful force of the CRM market. The extraordinary growth in technology communication offers marketing and the company new spectacular and has become high-tech marketing overnight. While the companies use to deal with distributors in smaller national markets, nowadays the local distributors need to be concerned about the pricing and marketing over the Internet. . The internet adds values and changes to the way Tera Tech needs to deal with information. Another major factor is the growth expected internationally, and how competition has already expanded to this market. In the meantime, all additional signs are disappointing. The financial system is in a downturn, unemployment is at an unsurpassed high, stocks seem to down, and macroeconomic indicators are all negative.
Tera Tech will employ several programs within their marketing strategy. All the programs will have the goal of getting the largest outcome with a marketing budget that will be fairly limited, but a necessary expenditure. Tera Tech will employ advertisements online, brochures, and beta testing at current and future customers. The largest element of the marketing strategy will be the robust website that will catalog all the different services offered by Tera Tech. Tera Tech needs a innovative product that would merge Tera Tech’s CRM knowledge with modeling and analytical skills; the outcome will allow customers to make the most of the significance of their data and refine their marketing for utmost success.
As a leading Global CRM solution provider, Tera Tech develops CRM and e-business solutions for mid to top tier pharmaceutical companies that need to develop and sustain first class relationships with their customers in order to remain competitive. Tera Tech offers an integrated range of CRM products, covering Marketing, Sales and Customer Care. This integration ensures that all customer interactions, no matter where they are initiated, benefit from complete and consistent customer information.
The marketing objectives are as follows: Increase sales every month for the next two years. Increase repeat customers by 3% per quarter. Develop a brand image that is above the competition show Tera Tech’s values – training, installation, service, support, knowledge.
The financial objectives include the following goals: Increase the profit margin by 2-3% per quarter. Hold spending at a steady level as a percentage of sales. Generate sufficient sales in the next year to hire the necessary additional employees.
Markets Tera Tech will provide CRM services in a technical capacity and consultation basis in the pharmaceutical industry. Since Tera Tech is currently limited to the current staff for the first year it will limit the growth of the company and the capability of the amount of work the staff can complete. The existing CRM market is so widespread that classifying the market is a somewhat difficult duty. For the revenue-oriented purposes Tera Tech will characterize the market as pharmaceutical companies that are in need of CRM capability. The total target market after the first year is pharmaceutical companies in the 16 continents (Greenemeier, 2003).
Tera Tech will position themselves as the premier CRM firm in the United States then expand globally. Tera Tech to achieve their desired position will leverage their competitive edge. Tera Tech’s competitive edge consists of their unusual ability to explain or teach complex technical issues to clients of all computing abilities. The ability to translate complex computer ease into Basic English is an unusual and desired skill. This competitive edge allows Tera Tech to empower clients with new knowledge, making them feel significantly more comfortable in the computing environment where they now interact in so many activities.
The main purpose of Tera Tech is to place the company as the leader CRM provider escalating market penetration. Tera Tech marketing strategy is to make customers aware of the offered services and grow the customer base, building referrals and customer loyalty. The communication that Tera Tech will seek to pass on is that they can offer assistance for any type of computer issue that the customer can think of or encounter using their service. Tera Tech will employ several methods of communication. The first method will be the use of advertisements. Tera Tech will also use free, community computer presentations/seminars as a communication method. These presentations will be fairly broad based, general presentations/lectures introducing newbie’s to the technology and service offered. The goal of the presentations will be to introduce the client and potential clients to Tera Tech and their unique teaching style. The presentations should develop significant new customer leads. The last method Tera Tech will use a comprehensive website that will display Tera Tech’s technological proficiency, describe their unique competitive edge of an efficient and effective teaching style, as well as catalog all the different services offered.
Tera Tech’s marketing mix is consisting of pricing, promotion, advertising and distribution. The pricing schedule is generally supported on an application and module pricing. Tera Tech needs charge higher then their competitors but the company needs to defend the higher cost. However, Tera Tech is flexible in order to meet all the customer’s possible needs including a monthly retainer rate for any problems that arise. Distribution (Place) – Generally the services will be offered at the client’s central office. Advertising and Promotion- A multi-pronged strategy will be used for the advertising/promotion campaign. Customer Service- Tera Tech is intensely aware of the need to have exemplary customer support in order to increase their market penetration and achieve sustainable profitability.
Marketing Research is an essential step in formulating a marketing plan. Tera Tech absolutely needs to be familiar with their customers. In the history they have assumed their customers need and have not conducted adequate research. Tera Tech did conduct a research last year and the primary research data about the market, customers, and their preferences. An electronic survey was administered to collect the market research. The survey was issued to current clientele within the target market segment. Tera Tech received a total of 150 returned surveys that provided the company with significant amounts of valuable market research.
To ensure accuracy and validity of the surveys, the survey design was outsourced to a statistics professional. The added expense of the survey creation was more than rewarded by accurate, valid market research. New lines of market research are being considered: Primary research on the customer which will let them know about their existing customers needs. The research can consist of random telephone calls, from the already conducted mail surveys and additional electronic surveys. Secondary research which is from internet sources and published magazines; these sources can assist with demographics, business needs and additional target markets.
The financials section in the marketing plan gives detail of the sales forecast, break-even analysis. Sales Forecast
The sales strategy is a calculation of controllable, slow growth. Since their can not be any employees added the focus will be on attention and quality. The strategy is for a 3% increase over the next year. Much of Tera Tech’s sales are not generated in ways that all the marketing activity to be tracked back to a CRM programs offered.
This break-even analysis indicates that Tera Tech assumes running cost of approximately $11,122,000 per month, which includes, Product Development and Support, Sales and Marketing, General and administrative plus any other operating expenses. Margins are harder to presume. The general average is supported by past sales. Tera Tech anticipates attaining an elevated margin. Tera Tech needs to produce revenue of about $26,886,000 per month to break even, according to the assumptions.
The principle of Tera Tech’s marketing plan is to provide a listing of what needs to be done to the company. The subsequent section needed to be observed to measure the performance: Revenue and Sales, monthly and annual, also the new client acquisition and customer fulfillment.
The following milestones classify the key marketing plan. It is imperative to achieve each on time and on budget. Milestones – Marketing Plan Completion: the goal is to have a 3% growth in the first year. In addition to have the website upgrades completion in the first 3 months of the current year.
Tera Tech’s marketing organization consists of the board members: the responsibilities are divided based on skill. Tera Tech will have bi-weekly meetings to discuss the progress and the budget. All issues are agreed upon fully before future implementations.
A marketing plan is just that, a plan. Plans do not constantly work out and Tera Tech has to be ready to handle the possibility that Sales and Marketing projection are off and will not come through. In addition Tera Tech needs to prepare for overwhelming success.
Revenues exceed projections – A huge increase in revenues which is an over projections of revenue will give Tera Tech the chance to increase the budget in the marketing plan. The company will have the opportunity to hire the needed employees and Tera Tech will better equipment and services.
Revenues miss projections – Tera Tech needs to plan for the chance that they do may not reach the projections. If they miss the projections the company needs to enhance the marketing efforts. The issue is that when projections are not meet most companies reduce the marketing budget with is not the step companies should take. The message needs to get out to the target market, and that can not occur if Tera Tech stops spending on marketing and allows the overly aggressive competitors get the upper hand. Additional capital infusions may become necessary.