Software Company Marketing Plan

This sample marketing plan has been made available to users of Marketing Plan Pro powered by Duct Tape Marketing, marketing planning software published by Palo Alto Software, Inc. Names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have permission to resell, reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526.

Copyright Palo Alto Software, Inc., 1998-2010 All rights reserved.

Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities.

Table of Contents
1.0 Marketing Vision......................................................................................................................................1 1.1 Gap Dashboard .............................................................................................................................1 2.0 Ideal Customer ........................................................................................................................................2 3.0 Remarkable Difference ...........................................................................................................................2 4.0 Product/Service Innovation .....................................................................................................................2 5.0 Lead Conversion Plan.............................................................................................................................2 5.1 Lead Generation Plan ...................................................................................................................2 6.0 Service Experience .................................................................................................................................3 6.1 Loyalty Product/Service Offerings .................................................................................................3 7.0 Critical Numbers ......................................................................................................................................3 7.1 Sales Forecast ..............................................................................................................................3 7.2 Marketing Expense Budget ............................................................................................................5 7.3 Key Marketing Metrics ...................................................................................................................6

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Software Company Marketing Plan

1.0 Marketing Vision
Software Company has embarked on an ambitious plan to create new software products, eCommerce Solutions Platinum eCommerce Solutions--sc alable inventory software products. The new products are scheduled to be released in May. The product will reasonably priced for the medium-sized businesses, and still be within the range of entry level e-sellers. Software will receive 90% markup on each unit sold. It is projected that Pursuit Solutions will sell 250 units by Month 2. It is projected that Software Company will gross $1.5 million from sales the first year. The objectives of Software Company are: Establish the company as a leader in inventory software products. Sales of $1.5 million in Year 1 Increase sales by 20% each year.

1.1 Gap Dashboard

We've set some goals for the company and our new products. They have been loosely quantified in the following table. Each month we will see how if we have made steady progress toward our goals, or perhaps followed a foxtrot path; slow-slow, quick-quick. The gaposis between planned and real results will help us direct future efforts.

Table: Gap Dashboard

Gap Dashboard Year 1 Personal Add Health Insurace to benefit package Hire Two Additional Employees Personal 3 Business Product Release and Updates on Time Sales Revenue Meets Plan Business 3 Tactical Monthly Direct Mailings Monthly Emailings Onsite Seminar or Webinar Strategic Six tradeshows/conferences Become a MS certified provider Strategic 3 12 12 6 12 12 6 12 12 6 0 2 0 Year 2 yes 2 0 Year 3 yes 2 0

0 $1,595,000 0

yes $240,000 0

yes $288,000 0

6 0 0

7 Yes 0

9 Yes 0

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Software Company Marketing Plan

2.0 Ideal Customer
Our ideal customer is a manufacturing or distribution company who has to maintain 1,000 or more inventory items. They have a staff of at least five other people and know that to be successful, everyone must be involved. They want a system that can keep everything organized and cut out the need for dual entry. The business intends on increasing its product availability on the Internet by more than 10% in the next year. Our customer has one common problem: they want to make managing their Web store easier and less time consuming. This means that they need one product that combines all of their processes, so rather than switc hing systems, they have one central portal to keep track of all of their records.

3.0 Remarkable Difference

We can maintain 1,000+ SKUs, with no double entry.

4.0 Product/Service Innovation

Suspect: free case study, webinar, reports Prospect: webinars, talking with a sales guy Client: $15k-$35k Premium Client: $50k - $100k Champions: Suggest us to work with other companies

5.0 Lead Conversion Plan

We contact our mailing list once a week with articles that show them why they need to upgrade their Web store. We also send emails once a month letting the prospects know what is going on in the business, and where they can find us. If we have their phone number, we call them once every couple of weeks to invite them to watch a live webinar, participate in a demo, or discuss possibilities with a sales manager.

5.1 Lead Generation Plan

Our advertising plan focuses on the large Microsoft events that happen each year. We want people to come meet with us so that we can show them all of the benefits of working with us. We also send out direct mail and email, all of which are tracked by the websites that they go to, or reports generated when emails are opened. All of our tracking systems integrate together so we can look at all of them at the same time.

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Software Company Marketing Plan

6.0 Service Experience
All of our current clients have an open line of communication with us. If they have any questions or concerns, we are always available. One of the best ways to keep customer loyalty is showing them why they should be loyal. If we provide great service and a great product, there is no reason for them not to be loyal. We also have a great referral program for those who are so happy with our results, that they refer another company to us.

6.1 Loyalty Product/Service Offerings

Loyal customers, especially ones who give us testimonials and word-of-mouth referrals, receive either monetary rewards, or invitations to the events that we host for free. We also recognize our larger clients at our Microsoft events.

7.0 Critical Numbers

Our sales will be tracked using the same system that tracks our website visits and contact requests. Since we tend to have a limited customer base with large buy-ins, the individual service representatives will be responsible for reporting on transactions per customer and Platinum versus standard solution ratios.

7.1 Sales Forecast

We project sales of the standard eCommerce solution and the Platinum eCommerce solution will remain roughly equal throughout the first year, with both categories rising from $30-50k per month at the beginning of the year to $75k-$100k per month by the end of the year. We have little direct cost of sales, since development and maintenance costs for the solution are accounted for as personnel operating expenses and equipment purchases.

Table: Sales Forecast

Sales Forecast Year 1 Sales eCommerce Solution Platinum eCommerce Solution Other Total Sales Direct Cost of Sales eCommerce Solution Platinum eCommerce Solution Other Subtotal Direct Cost of Sales $835,000 $760,000 $0 $1,595,000 Year 1 $83,500 $76,000 $0 $159,500 Year 2 $1,002,000 $912,000 $0 $1,914,000 Year 2 $100,200 $91,200 $0 $191,400 Year 3 $1,202,400 $1,094,400 $0 $2,296,800 Year 3 $120,240 $109,440 $0 $229,680

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Software Company Marketing Plan

Sales Monthly
$200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0

eCommerce Solution Platinum eCommerce Solution Other

Sales by Year

$2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 $0 Year 1 Year 2 Year 3

eCommerce Solution Platinum eCommerce Solution Other

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Software Company Marketing Plan

7.2 Marketing Expense Budget
There will be a monthly expenses associated with each month's direct mailing; the majority of this expense goes into purchasing the mailing lists we need to target our suspects effectively. In addition, we have irregular expenses related to preparing for and attending the conferences which our prospects are likely to attend, and for rewarding customer loyalty.

Table: Marketing Expense Budget

Marketing Expense Budget Mailing Lists Direct Mailings Conferences & Shows - booth and attendence Customer Loyalty Rewards Other Total Sales and Marketing Expenses Percent of Sales Year 1 $12,000 $36,000 $60,000 $12,000 $0 -----------$120,000 7.52% Year 2 $14,000 $48,000 $75,000 $15,000 $0 -----------$152,000 7.94% Year 3 $16,000 $60,000 $90,000 $18,000 $0 -----------$184,000 8.01%

Monthly Expense Budget

$20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Month 10 Month 11 Month 12 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

Mailing Lists Direct Mailings Conferences & Shows - booth an Customer Loyalty Rewards Other

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Software Company Marketing Plan

7.3 Key Marketing Metrics
Our goals are predicated on achieving a high conversion rate of our sales leads. We see the first time, entry level buyer as our prime customer prospect so we will need to generate lots of leads. If we can surpass our goals in sales leads we can, theoretically, convert a lower percentage into customers as still meet our revenue goals. Eliciting testimonials and encouraging word-of-mouth referrals will be important in generating new leads.

Table: Key Marketing Metrics

Key Marketing Metrics Revenue Leads Leads Converted Avg. Transactions/Customer Avg. $/Customer Referrals PR Mentions Testimonials Other Year 1 $1,595,000 38,100 40.00% 1 $1,500 127 6 21 0 Year 2 $1,914,000 50,000 40.00% 1 $1,500 130 0 25 0 Year 3 $2,296,800 80,000 40.00% 1 $1,500 130 0 25 0

Annual Expense Budget

$90,000 $80,000 $70,000

Mailing Lists
$60,000

Direct Mailings
$50,000

Conferences & Shows - booth an

$40,000

Customer Loyalty Rewards

$30,000 $20,000 $10,000 $0 Year 1 Year 2 Year 3

Other

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Appendix
Table: Sales Forecast
Sales Forecast Month 1 Sales eCommerce Solution Platinum eCommerce Solution Other Total Sales Direct Cost of Sales eCommerce Solution Platinum eCommerce Solution Other Subtotal Direct Cost of Sales 0% 0% 0% $30,000 $30,000 $0 $60,000 Month 1 $3,000 $3,000 $0 $6,000 Month 2 $40,000 $35,000 $0 $75,000 Month 2 $4,000 $3,500 $0 $7,500 Month 3 $50,000 $40,000 $0 $90,000 Month 3 $5,000 $4,000 $0 $9,000 Month 4 $55,000 $45,000 $0 $100,000 Month 4 $5,500 $4,500 $0 $10,000 Month 5 $65,000 $55,000 $0 $120,000 Month 5 $6,500 $5,500 $0 $12,000 Month 6 $70,000 $60,000 $0 $130,000 Month 6 $7,000 $6,000 $0 $13,000 Month 7 $75,000 $65,000 $0 $140,000 Month 7 $7,500 $6,500 $0 $14,000 Month 8 $80,000 $75,000 $0 $155,000 Month 8 $8,000 $7,500 $0 $15,500 Month 9 $85,000 $80,000 $0 $165,000 Month 9 $8,500 $8,000 $0 $16,500 Month 10 $90,000 $85,000 $0 $175,000 Month 10 $9,000 $8,500 $0 $17,500 Month 11 $95,000 $90,000 $0 $185,000 Month 11 $9,500 $9,000 $0 $18,500 Month 12 $100,000 $100,000 $0 $200,000 Month 12 $10,000 $10,000 $0 $20,000

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Appendix
Table: Marketing Expense Budget
Marketing Expense Budget Mailing Lists Direct Mailings Conferences & Shows - booth and attendence Customer Loyalty Rewards Other Total Sales and Marketing Expenses Percent of Sales Month 1 $1,000 $3,000 $15,000 $0 $0 -----------$19,000 31.67% Month 2 $1,000 $3,000 $0 $2,000 $0 -----------$6,000 8.00% Month 3 $1,000 $3,000 $0 $0 $0 -----------$4,000 4.44% Month 4 $1,000 $3,000 $0 $2,000 $0 -----------$6,000 6.00% Month 5 $1,000 $3,000 $15,000 $0 $0 -----------$19,000 15.83% Month 6 $1,000 $3,000 $0 $2,000 $0 -----------$6,000 4.62% Month 7 $1,000 $3,000 $15,000 $0 $0 -----------$19,000 13.57% Month 8 $1,000 $3,000 $0 $2,000 $0 -----------$6,000 3.87% Month 9 $1,000 $3,000 $0 $0 $0 -----------$4,000 2.42% Month 10 $1,000 $3,000 $0 $2,000 $0 -----------$6,000 3.43% Month 11 $1,000 $3,000 $15,000 $0 $0 -----------$19,000 10.27% Month 12 $1,000 $3,000 $0 $2,000 $0 -----------$6,000 3.00%

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Appendix
Table: Key Marketing Metrics
Key Marketing Metrics Month 1 Revenue Leads Leads Converted Avg. Transactions/Customer Avg. $/Customer Referrals PR Mentions Testimonials Other $60,000 100 40.00% 1 $1,500 0 2 0 0 Month 2 $75,000 200 40.00% 1 $1,500 0 0 0 0 Month 3 $90,000 400 40.00% 1 $1,500 1 0 1 0 Month 4 $100,000 800 40.00% 1 $1,500 2 0 0 0 Month 5 $120,000 1,600 40.00% 1 $1,500 4 0 2 0 Month 6 $130,000 2,000 40.00% 1 $1,500 8 0 0 0 Month 7 $140,000 3,000 40.00% 1 $1,500 16 2 3 0 Month 8 $155,000 4,000 40.00% 1 $1,500 16 0 0 0 Month 9 $165,000 5,000 40.00% 1 $1,500 16 0 4 0 Month 10 $175,000 6,000 40.00% 1 $1,500 16 0 0 0 Month 11 $185,000 7,000 40.00% 1 $1,500 24 2 5 0 Month 12 $200,000 8,000 40.00% 1 $1,500 24 0 6 0

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Appendix
Table: Gap Dashboard
Gap Dashboard Month 1 Personal Add Health Insurace to benefit package Hire Two Additional Employees Personal 3 Business Product Release and Updates on Time Sales Revenue Meets Plan Business 3 Tactical Monthly Direct Mailings Monthly Emailings Onsite Seminar or Webinar Strategic Six tradeshows/conferences Become a MS certified provider Strategic 3 1 1 1 1 1 0 1 1 1 1 1 0 1 1 1 1 1 0 1 1 1 1 1 0 1 1 1 1 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 yes 0 0 yes 0 0 yes 1 0 yes 0 0 yes 0 0 yes 0 0 yes 0 0 yes 0 0 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

yes $60,000 0

0 $75,000 0

0 $90,000 0

yes $100,000 0

0 $120,000 0

0 $130,000 0

0 $140,000 0

yes $155,000 0

0 $165,000 0

0 $175,000 0

0 $185,000 0

yes $200,000 0

1 0 0

0 0 0

0 0 0

0 Yes 0

1 Yes 0

1 Yes 0

0 Yes 0

1 Yes 0

1 Yes 0

0 Yes 0

1 Yes 0

0 Yes 0

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