Professional Documents
Culture Documents
B2B MARKETING
GROUP 7
Tanay Chitre
G013
Spandana G
G019
Purva G
G020
Ankur Gupta
G029
Himank RathourG047
Harsh Shah
G052
Question 1
What customers should InvestorSoft pursue with its new
service? Why?
Should target Small Cap and Micro Cap companies in Calgary city of Canada (20%
of publiclytraded firms in Canada) with more focus on Micro Cap companies for
generation of revenues
Together comprises of 83% companies listed in Canadian Stock exchange.
Since the pricing does not vary much, volume plays an important role
They lack financial resource for in-house development or hire an in-house personnel.
Both the segment have a uniform IR website method (according to Exhibit 5).
Many of the firms does not have an effective solution(Almost 65%of microcap have
veryinadequate IR website)
No single method of investor relations website management dominated these segments
Least challenging to sell the product as only thefunctionality is important to the Micro
cap companies
Mid Cap will give more credibility to Investorsoft before it approaches Blue Chip.
Approximately 59% of companies listed on Canadian Stock exchanges were Micro Cap firms
and most of them lacked an advanced investor relations program
The CEO acts as the investor relationship manager in Micro Cap.
Such interface would enable him to have free time to concentrate on expansion of sales
and operations
Small Cap companies can be used for brand building and Micro Cap companies will help in
achieving the sales target
Concentrate on Calgary city of Canada since the business centres are concentrated in a
few major areas and Investorsoft will have the closer to home advantage.
Savings of time and money during sales visit
Question 2
Is Market Capitalization the best way to segment the market?
Is there a better way to segment the market? What other
Macro or Micro segmentation base would you utilize to
segment the market effectively?
The firms with different market capitalizations have different requirements for their
investor relations page
Therefore, at first glance, Market capitalization seems as an ideal way of segmenting the
market.
However, this segmentation doesnt address the main issue that a company has to consider
while making the sale the buying centers of an organization
It will help identify the power centers in a purchase decision and Investorsoft can then
modify their sales pitch according to the client requirement
Making the right sales pitch that targets the people whose vote holds higher power will
result in higher sales conversions
Geographic Segmentation
This will help reduce the physical distance between the client and Investorsoft
thereby increasing client comfort levels
However, markets such as US, which were huge potential markets would be neglected
Question 3
What are the various factors that Bolivar should take into
account while making a decision of segment?
Geographic Factors- Canadian companies may be more willing than American companies.
Great attractiveness of the Toronto area. Customer preference for a nearby supplier.
Emergence of Calgary as a prime location for HQs
Market Capitalisation- Total market size of the companies which will directly impact their
capacity to buy Investorsoft products
Level of service- Different companies will require different level of service. From just
uploading the report to entirely managing the investor relations of the company
Existing Investor Relation Management Tools- Companies which are already using software
or outsourced vendors to manage their investor relations should be differentiated from
those who are new to the software
Acquisition Cost- Investorsoft needs to ensure that the cost of acquiring and serving a
customer is worth the price or benefit derived out of it.
Question 4
What the behavior of the customer when it concerns handling
the investor relations portions of their website? Are there any
discernible patterns to the behavior? What clues are there for
Bolivar in this behavior?
Segment
Customer Behavior
Micro Cap
Small Cap
Are conscious of the need to manage IR and hence invested some time &
money for IR activities
Most are unwilling to spend heavily
No single method of IR website management dominates
Mid Cap
Have capability to spend significant resources but many dont take advantage
if the opportunities available
Credibility & reputation are very important
Would prefer premium products
Blue Chip
From the above Bolivar might interpret that it would be least challenging to sell to the
micro and the small cap segment of customers as for them functionality and price are the
most important factors. Selling to the mid cap might be challenging, but Bolivar could
target them by building a premium version. Post establishing a strong base of satisfied
clients, he could use the credibility built to target Mid cap and blue chip customers
Question 5
What are the pros and cons of distributing through
intermediaries? Does this make sense for Investorsoft? Why or
why not?
Pros
Cons
Investorsoft should look to target the market as a combination of direct sales and through intermediaries
Going with the intermediaries can also result in the brand dilution for
Investorsoft:
Question 6
What promotional strategy would you recommend to Chris
Bolivar? Be sure to specify how much you would spend, on
what, and why.
Direct Mail
Print advertisement
Conference exhibits
No investment here because it wont make sense to invest here before having a
solid base of customers + Too expensive
Industry promotion
Personal Selling
Building Brand Recognition
Financials
Description
Rate*
Quantit
y
Direct Mail
per mail
150
750
Print
Advertisemen
t
1000
1450
per small ad
per medium
ad
per large ad
Conference
Exhibit
Industry
promotion
Personal
*All Selling
rates in $
Total
small cap
750
companies
2250
2000
1450
150
per user
10
150
per user
10
150
600
per virtual
sell
per personal
visit
high value
1500
contact
medium
value
1500
contact
25
companies 3750
25
companies 15000
282
00
Total Costs
Overshooting
the
marketing
budget
by $3200
Question 7
How should InvestorSoft price its service?
Differential Pricing
InvestorSoft
Standard
InvestorSoft
Advanced
Stock Quote
Stock Chart
@ $99 per month
News
Releases
Information
requests
Financial
reports
Information
fulfillment
And other
features