marketing strategy for software startups

8/12/2019 Marketing Strategy For Software Startups

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This document is a result of a marketing research conducted by students of Duke University MEMC in

consultation with Net Serpents LLC. Net Serpents is a startup computer software consulting firm interested inpenetrating the market in the field of computer software consultancy and staffing services.

Duke University students were challenged by Net Serpents to research the market and interviewindustry experts to find out what would be an effective approach to marketing consulting servicesfor a startup company in this field. Net Serpents was unsure of specific areas of business to focuson and required expert opinion from those who had significant knowledge or experience this fieldas well as to directly speak with companies that require software services. Net Serpents services aravailable for viewing at www.netserpents.com.

About this document


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DUKE UNIVERSITY MEM CONSULTING Malvika Gandhi Ninad Mukund ShahYichen Li Shengwen Wang

Marketing Strategies

for Net Serpents LLC


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CONTENTObjective

Marketing Strategies

Survey Table

Interviews

Recommendation

Appendix


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Marketing StrategyNet Serpents should have marketing mix strategies comprising of Traditional and

Digital media marketing.

Traditional Marketing:

1) Primary Research: Assign a team to conduct intensive market researtarget industry. It will help to understand the changing markets and ncustomers.

2) Competitive Benchmarking: Assign a team for continuous bench-markcompetitors to study different business models of competitors and at the samto know the best industry practices to help improve our own companys


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Traditional arketing continues 3)Consulting Clubs: Take help from consulting club teams from different uni

Young talents definitely come up with unique strategy ideas. Also, companlot of publicity through it..

4) Trade shows: Net Serpents must participate in different Trade shConferences around the USA. For the College recruitment plan, Net Serpents

participate in different career fairs to obtain the Resumes of Students. It wcompany grow its student database and help in its publicity.


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Digital Marketing1) Website: Website of the company is very important source of marketing.

needs to be updated on regular basis. Net Serpents must put its clients and pon the website as the business flourishes. 24-hr chat service window cstarted for people visiting companys website.

2) Social Media Marketing: Net Serpents must focus on social media like

twitter, blogs as part of their marketing strategy. Creation of Facebook pagegood start where Net Serpents can upload pictures, videos, add descriptionwould build fan following and ultimately help in publicity of company.


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Survey TableInterviewee Names & Members Responsible

Name Company Name Surveys Taken Member Responsibl

Anil Raj TAI Software/Solution provider Malvika Gandhi

James Mundell Clinical Sensors Inc Both Surveys Malvika Gandhi

Ajay Chopra Ecalix Both Surveys Ninad Shah

Dr. Latondra Murray Ex-IBM Manager Business that purchasesoftware

Ninad Shah

Gregory S Hopper NetApp Business strategy Yichen Li


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Interviewee 1: James Mundell

James Mundell has been involved in starting up five compin his career spanning more than 30 years.

He now serves as an Adjunct Professor at Duke University

He is also serving as Director of DUHatch, which helpsstudents implement their ideas.


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James Mundell- Clinical Sensors Inc As a company who requires softwares from outside vendors, Clinical

Sensors has relied on hosted solutions and searching on internet for posolutions.

However, talking to friends and other contacts play a major role in selea software for a particular solution.

Clinical Sensors also trusts new vendors, as they are more responsive offer good services.

The fact was reinforced by Anil Raj, who, as a solution provider believthat smaller and newer companies are more active in providing solutio

Being a new company, Clinical Sensors is more flexible in adapting nesolutions in order to save time, money and effort.


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James Mundell- Clinical Sensors Inc As a solution provider, Clinical Sensors relies on already established

contacts and relationships for marketing. However, having a better proand having unique features are the greatest assets for the company.

As a start-up, Clinical Sensors Inc spends less than 10% of its annual bon marketing.


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Interviewee 2: Anil Raj Anil Raj founded Technology Associates Inc in 1993. He has been involved in

Offshore Management and Shipbuilding Management for more than 37 years


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Anil Raj - Technology Associates Inc (T For TAI, word-of-mouth publicity, building and maintaining good rela

with the customers is of highest importance. The biggest challenge foris to market their products and solutions through conventional channeHence, it relies on its customers to spread the word across.

However, as a small company, it offers better products, unique and qui

solutions to its customers, which set them apart from its competitors.

TAI spends its budget on proposals for acquiring new projects. It doeshave an allotted budget for marketing.


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INTERVIEWEE 3: AJAY CHOPRA Ajay Chopra has chain of restaurants in California(50 restaurants). He is also

in software consulting firm. Companys name: Ecalix. He has also creatseveral software consulting business


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Ajay Chopra- Restaurant Chain Personal Relations: As a new business, company must focus on their perso

contacts or relationships with managers from different companies to obtain neclients and business proposals. This strategy would be lot easier and efficient

point of contact knows you well and can help company in different aspects. Sheavy focus to be given on personal relations.

Trade Shows : Company must participate in Trade Shows, Career Fairs andConferences. It will help company build professional networks within the speindustries. They are different than personal relation and will be useful for futu

business clients acquisitions. He mentioned trade shows are less costly and cocan definitely participate in it.


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INTERVIEWEE 4: Dr. Latondra Mu Dr. Latondra Murray is adjunct professor at Duke University. Dr. Murray h

years of management experience and previously held technical leadership pat a variety of organizations including NASA, AT&T Bell Laboratories, Technologies, and IBM.


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Insights from Dr. Murray Dr. Murray took a survey: small business that purchase software (based o

background)

Price: Software that meet the needs of clients at reasonable price. Small busiwill prefer to purchase these softwares.

User Friendly: Vendor must show potential clients the flexibility and easineupgradation/downgradation, configurations, terms and conditions of their offe

Trial Periods: Free trials periods (even if they are short) are also a means o providing potential clients with hands-on access to tools so they can get a feehow they might perform in their environments and/or meet their needs.


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Insights from Dr. Murray Vendors: Solutions identified through the web via sources that I trust are gen

good; it is easy to find information on the Web to assess companies and theirsoftware products in terms of price, performance, support, and scalability.

Shopping Methods: New Softwares can be found out using direct referenccontacts. Also prefers searching on internet- Google, Facebook, Twitter and osocial media

Quality: Good quality software at reasonable price is one of the important fawhile purchasing new software. Google reviews, facebook comments, likes o

product will be influential and important.


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Interviewee 5: Prof. Gregory S Hopper Greg Hopper is a Strategy and Product Marketing Executive and an Entrepren

with over 30 years experience in corporate strategy, and marketing of technolo based solutions, and is currently a Senior Product Manager in the Office of that NetApp.


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Thinking methodology Before the analysis of a company or a commercial concept, three basic

questions need to be answered: Who is the target customer? Why should customer buy this product? Why should customers buy only from you?

The seeking of an answer to these questions offers a plausible and insireflection of the company itself: its uniqueness, its competitive advant(Which together constitute the core competitiveness of a company), itstargeting market and the customer relationship.


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Solving old questions by bring up new onesIdentifying the right service1. How to know potential customers needs Professor Hoppers believes that Net Serpents business model is not a brand

idea, actually large numbers of similar business has already existed for long.Which though a challenging situation could also bring potential oppothe company.

By competitor analysis: To know the customers needs Net Serpent can resea

competitors websites to know what they are doing for customers, the compeservices may represent customers needs. Combined with the companys ownmarketing expectations, a realistic customers needs anticipation can be succmade.


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Why net serpent, but not anyone els2. What differentiates Net Serpents from others? Mr . Hoppers had referred a concept niche, which means a specific field sm

companies rely on to survive by developing highly customized services. Hugcompany, in most cases, would focus on balancing the needs of varies majorihave neither will nor resources to develop such kinds of unique services. And

Net Serpents, the economic efficiency, the low cost due to off-shore sub cont

will grant Net Serpent to deliver service for those who are financially limitedseeking for high quality software services.


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The myth of subcontract3. Why companies hire another company to do the work?

The analysis of this question brings Net Serpents core competitiveness: Both Hoppers and the team had concerns about Net Serpents vague commercial

orientation mostly because of its too versatile business focus, among which somfunctions have little inter-relationship and can hardly help promote each other, so ito survive, Net Serpent must be an expert of one thing than a entering level for eveThey mush spot and focus on a niche and try to develop best service for it. Only byway can they obtain the best chance to develop in the future.

So far Hoppers believes Net Serpents business plan is a little bit hasty (it is not qurealistic to achieve the goal according to the schedule, considering the current resoand strategy Net serpent occupies) and strongly recommends the company to give educational and placement service and focus more on software issues.


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Get access to business opportunity4. If a niche has already been selected, What market channel to use? How customers find companies

Large companies have approved vendors and have a long-term relationship with them. This is notstart-up reach out for business opportunity.

Net Serpents can get contracts from large companies by hiring accomplished experts who have relwith large companies.

The way small companies shop software developers and web designers has no difference with shoanything else. Search engine is a key way for small companies to search web design or softwaredevelopment contractors. But Net Serpents should improve its own web site first to attract customeHoppers personally believes that the official web page still needs some designing customer experioptimization in order to bring visitor a positive enough first impression.)

Advertising is a very inefficient way to market products for start-ups. Google AdWords, comparedtraditional ads, can bring start-ups like Net Serpent ideal customers, but it is very expensive. And tselection of the key words is the most difficult part of the advertising activity that must be paid enoattention to.


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The details that determines success or failure The professor have also offered suggestions on other issues based on his 30 y

consulting experience and business instinct He pointed out that an ideal marketing cost should be zero. If not plausible, i

should be at least No more than 5% to 10% of budget. Also about marketing team size, he believes that Net Serpent should start wit

but experienced one. Marketing is different than sales. The task of sales-peop

sell products. Marketing people are responsible for attracting future customerto best provide their products.


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In summary, Prof Hoppers has helped us finding methods to refine Net Serpen

business model, introduced us the methodology to figure out the corecompetitiveness of Net Serpents and had offered a series of business practicesexactly customized for start-ups like Net Serpents. A careful weighing of thes

points and suggestions would definitely shed lights on the current situation of business and would help Net Serpents to perform a more economical and healdevelopment as a cooperation.


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Conclusions & Recommendations Based on the interviews we had, we reach to following conclusions:1. High quality service and product is one of the most important marke

strategy. Word-of-mouth publicity can help Net Serpents build itsreputation.

2. Building and maintaining good relations with the customers is anothmost important marketing strategy.

3. Personal network is the key to develop customers. Therefore, hireexperienced IT consulting professionals would help.


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Conclusions & Recommendations4. Trade Shows, Career Fairs and Conferences will help company build

professional networks within the specified industries. These are the potential ways to do marketing and advertisement.

5. Net Serpents can start with software consulting for multiple inter-rel business.

6. Net Serpents should focus on personal relations and trade shows at th

point, instead of spending large amount of money on advertisement.7. Targeting Small business and offering reasonable price.8. Providing free trial periods to new customers.

marketing strategy for software startups

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