Business Plan - Marketing Section - Research Paper Example

Marketing Strategy Area Academic Level DAKVEV Consulting and IT solutions is a company that deals with IT solutions and a broadrange of related products. This paper looks at the value proposition and pricing strategy in the marketing department of the company and then gives a brief introduction of the company, introducing its products, and goes ahead to define value proposition. It then develops a strong value proposition for the company and shows how it can improve its bottom line and make customers understand why they should buy its products.

It finally introduces the pricing strategy that the company uses to attain a competitive edge.Value PropositionA product’s value proposition is a statement of the functional, emotional and self-expressive benefits delivered by the product that provide value for the target customer, (Barnes, Blake & Pinder, 2009). When we break this down we see that it consists of the following components: what the company offers the customers, the type of value or benefit associated with this offering, to whom the company is offering this value.

The company is offering products in the following broad categories: network configuration, audio-visual maintenance, network security, and software solutions. A primary market research was conducted to verify whether these products and services were needed. The company sent a group of marketing staff to school districts in the local areas and the greater parts of the North East United States, to carry out some research, which realized several findings.The potential customers, the schools and other business establishments, had a number of problems that called for some solutions.

There were customers who had computer systems, printers and storage systems that were not interconnected, yet they still had the need to share devices, the internet, software and files. A number of schools had audio-visual systems that lacked preventative maintenance to make them operate at optimum levels. Few establishments lacked optimization of their IT software and hardware, and they did not have security solutions to protect their network systems, corporate database data and information assets against potential threats exposures which can jeopardize or client’s business information confidentiality, integrity, and availability.

There were no security strategies to mitigate on issues caused by people, network system set-up and configuration, system functionality, and business processes. They were short of software solutions for their needs. A few companies that were existing to provide solutions to their needs were either expensive or were located very far from their locality.DAKVEV stands to be in business because of a number of factors, and would be able to provide services to the North East United States since it has two offices located in Philadelphia, PA and NEW York, NY.

It has 25 employees, who are customer friendly, highly qualified and experienced to handle various customer needs within the IT field. Our products and services are offered at very competitive prices that result in huge savings in the long run. For those who are not using any of the company’s products they are urged to try, and they will discover why there is a long list of satisfied, happy, contented customers. The customer service line is on twenty-four hours a day, throughout the week to attend to customer’s needs.

The company not only targets schools for its products and services but also targets small to medium scale businesses in various fields. The company has solutions for government institutions, hospitals, non-governmental organizations and federal agencies. Individuals are also encouraged to request the company for individualized solutions. Pricing StrategyThe DAKVEV Company uses a variety of pricing strategies in offering its goods and services to its customers. There are several factors that have a bearing on the fixing of the prices, and it is appreciated that the same factors can also impact on the market price, and these include; costs and expenses, demand and supply, consumer perceptions, competition, government regulations and technological trends.

The table below outlines our prices for common goods and services and the last two columns give prices by the closest competitors. Company X does not have offices on site therefore its products are costly. Whereas products from company Y appear cheaper, the company has a smaller office, few workers, who are less experienced, and therefore, offers poor quality services. The company also takes time to respond to customers’ requests and complains. Items 4 and 5 are exclusively developed and sold by DAKVEV.

NoProduct or ServiceDAKVEVXY1Network Configuration – it will depend on the number items being configuredFrom $ 450From $ 600From $ 4002Web page design, development and hosting.From $ 800From $ 1.050From $ 8503Cashflow X Plan Micro Super$ 900$ 1,000$ 8004DAKVEV School Management$ 1,680--5DAKVEV Learning XYZ Database$ 720--6Lotus Accounting General$ 600$ 750$ 550To arrive at our prices the general rule is taking the cost price and marking it up by 30%, for example, if the cost of the product is $100, its selling price becomes $130.

For services offered like repair and maintenance there is a standing minimum charge of $100 and $40 for every hour spent on site. Meehan (2011) found that in order to avoid the standing minimum charge, customers are advised to deliver and collect items due for repair or maintenance to the offices. There are several customized software solutions, these ranges from $200 to $2,000 depending on the man hours that were used in developing the software and the extent of their complexities. The cost of the customized software is inclusive of basic training, manuals and after sales consultation for three consecutive months.

For small purchases, we ask the customers to make delivery provisions, but for bulky purchases the company makes deliveries. Mills (2002) agrees that large discounts lead to lasting customer loyalty. The first three customers to purchase customized software get a 50% discount on condition that they accept to be used as referees for future potential customers for the same software.We expect to meet our operating expenses from the 30% profit. The operating expenses in question are rent, wages, telephone and electricity, and reserve some amount for the development investment.

The furniture and tools are a one-time purchase for which the company acquired using its initial investment.The business has competitive prices in several areas. Since most companies do not have offices within these areas, they have to charge higher in order to meet delivery costs. The network accessories offered by a number of companies could be cheaper than this company’s, but they are inferior in quality. As such the customers affected have their networks failing every so often and the accessories not durable.

The company offers a one-year guarantee on all hardware accessories, and there are credit facilities available on request to the customers.The value proposition and pricing strategy outlined are bound to make the marketing section to be more effective. These will lead to the expansion of the market served by DAKVEV and happy, loyal, satisfied customers. The workers will also be confident and proud of working for the firm.ReferenceBarnes, C., Blake, H., & Pinder, D. (2009). Creating & delivering your value proposition: Managing customer experience for profit.

London: Kogan Page. http://books.google.co.ke/books?id=8d73CPt_khwC&printsec=frontcover&dq=value+proposition&hl=en&sa=X&ei=XUzaU43gNY-e7AaKlID4Bg&redir_esc=y#v=onepage&q=value%20proposition&f=false Meehan, J. (2011). Pricing and profitability management: A practical guide for business leaders. Hoboken, NJ: Wiley. http://books.google.co.ke/books?id=zMZXk-NPyCIC&printsec=frontcover&dq=pricing+strategy&hl=en&sa=X&ei=pU3aU5OZDsua0QWJkoDoDA&redir_esc=y#v=onepage&q=pricing%20strategy&f=falseMills, G. (2002). Retail pricing strategies and market power.

Melbourne: University Press. http://books.google.co.ke/books?id=ZcnxZg6NqA8C&printsec=frontcover&dq=pricing+strategy&hl=en&sa=X&ei=pU3aU5OZDsua0QWJkoDoDA&redir_esc=y#v=onepage&q=pricing%20strategy&f=false