Detailed Marketing Plan for Jumbo Accounting Software in the Market

This marketing plan details strategies for Jumbo Accounting Software, a startup offering custom accounting solutions. It begins with an analysis of the competitive and economic environment, including competitors like FreshBooks and Xero. The plan addresses market segmentation, targeting manufacturing companies and large corporations, and discusses product classification, branding, and the product life cycle. It outlines distribution channels focusing on online advertising and networking through trade events. The promotion strategy emphasizes advertising objectives to increase revenue and encourage trial, using a promotional mix of personal selling, public relations, and sales promotion. The plan also covers product positioning, a value-based pricing strategy, and flexible pricing to remain competitive. The overall goal is to increase sales and market share through effective marketing strategies.

Running Head: MARKETING PLAN 1
Marketing Plan for Jumbo Accounting Software
Name
Institution

MARKETING PLAN 2
Marketing Plan for Software
Introduction
Jumbo software limited is a small enterprise operating in its first year. The company sells
custom made software’s such as accounting, book –keeping, calendar programs and other related
products to over 50 businesses in the country. Recently, the company launched an accounting
software. Currently, Jumbo software’s biggest challenge pertains to how it will raise its
profitability and make better use of its resources. For this reason, the company seeks to develop a
sound marketing plan and strategy that would ensure a significant increase in sales of the
company’s products.
Analysis of the Environment
Since its inception, the company has strived to evolve into a provider of high quality
custom-made book-keeping and accounting software as well as other related business-to-
business specialty items.
Competitive forces
The company faces stiff competition from other software companies that offer accounting
and book-keeping software. At the moment, the main competitors of Jumbo include FreshBooks,
Xero, Zoho Books, Netsuite, among others. Given that Jumbo is a new startup in the market, it is
difficult for it to obtain a significant market share of the intended target market since its
competitors are significantly developed. However, the firm has great prospects to compete with
rival firms due to the fact that its software is unique and user friendly unlike the others.

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Economic forces
It is worth pointing out that most accounting software companies throughout the country
have been forced to cut their overall marketing budgets on factors such as mass media
advertising. Instead, they have shifted towards sales promotion and specialty advertising.
Therefore, this trend provides a significant platform for the company to market its products
through specialty advertising.
Political forces
At the moment, there are no expected political factors that will influence or significantly
affect the operations and purchase of the company’s software.
Socio-cultural factors
Today, most target firms for the company’s product prefer convenience and ease of use.
Therefore, if the commodity is time consuming and difficult to use, consumers simply dispense
it. In this regard, Jumbo software fits this consumer trend and would successfully meet the
accounting and bookkeeping needs of the client firm. In addition, the shift to a paperless society
makes the software more desirable to firms, thereby creating the need to automate some
accounting and book keeping tasks. Indeed, these factors are highly beneficial to Jumbo
Software Limited.
Primary and Secondary data on the market
By focusing on commitment to service and quality, Jumbo software will be able to
effectively develop and implement a niche differentiation strategy in the market. At the moment,

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Jumbo’s main target market consists of manufacturing companies and large corporations .
Particularly, the firm’s ability to differentiate its products and customize them to fit the specific
needs of its clients will contribute to high annual returns. So far, the most profitable product is
the bookkeeping software that has been tailored to meet clients’ needs on record keeping.
Analysis of consumer behavior and market segmentation
As noted earlier, the main target groups comprise of large corporations and
manufacturing companies. Such firms often have a significant proportion of book keeping
records, and a user friendly and easy to use accounting software is preferred. Jumbo software
has capitalized on this need , and has created a simple procedure for implementation.
Predominantly, the process begins when Jumbo’s sales representative call on potential clients
and using the company’s standard template, develop a sample accounting or book keeping
software for the client. Once the sale has been finalized, the software developers complete the
concept which includes the design, copywriting, and customization according to the
specifications made by the client. Specifications are then sent to the supplier for approval. In
turn, this high level of service by Jumbo’s personnel sets the company’s products from that of
our competitors.
Discussion of the Product
Product classification and branding
Jumbo software can largely be classified as a specialty product. As such, it tends to
promote and develop a strong brand identity for the company in order to create customer loyalty.
Potential clients often spend a lot of time searching for the perfect software to meet their firm’s

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accounting and book keeping needs. For this reason, Jumbo has developed a strong marketing
team to promote the awareness of its software to potential clients. Over the past few months, the
company’s software has developed from a novel product into a known brand. In the next few
years, Jumbo accounting software will be the household name in the market.
Packaging and labeling
The company’s software is packaged and stored in an electronic disk that is then
transferred into the client’s computer. The disk is labeled with the company’s name and logo at
the top.
Product life cycle
Sales/profits
Introduction Growth Maturity Decline
Sales
Profits
Losses/investment
Source: (Marketing Insider, n.d.)
Jumbo accounting software will go through various stages from the beginning to the end
of its market. Specifically, its product life cycle stages comprise of the development stage,
growth, maturity and decline. The development stage is the initial stage of the software’s cycle.

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In this stage, the software is initially introduced to the market. The sales are typically low during
this stage because many firms are unfamiliar with the commodity (“Product Life Cycle,” n.d.).
At this stage, it is prudent for Jumbo Limited to raise the awareness of the product through the
use of a place strategy such as specialty advertising, direct selling and intensive distribution to
the clients. Using these place strategies, the firm must set a low price for the product to attract
more clients (“Marketing Mix,” n.d). However, as the cycle proceeds to the growth stage, a high
demand for the product will develop, thereby raising the sales. To maintain the sales, the
company will adopt a competitive pricing strategy. With regard to a placement strategy, the firm
will adopt an intensive distribution strategy to ensure that the product is sold to as many
locations as possible. When the cycle reaches maturity stage, sales growth would have stabilized.
At this point, the company would have reached most of its target customers (Marketing Insider,
n.d.). Here, the firm will adopt a selective distribution place strategy to ensure all its identified
clients have access to the product. The final stage of the cycle would be the decline stage. At this
stage, the demand is projected as significantly low and the firm will consider to upgrade the
product by adding more features and giving it a fresh life (Martin, 2014). Therefore a place
strategy such as intensive distribution through retailers will help boost the sales for the firm. In
turn, this would ensure continuity of the product’s cycle in the US market.
Channel Distribution
The company will employ various means to reach clients and potential clients. Given that
the company has limited financial resources, it is important that the available resources are
managed effectively. In this regard, Jumbo will focus on two main factors, that is networking and
advertising. Primarily, advertising will be done through online platforms using search engine

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ads. Consequently, it will allow the company to realize results within a few days instead of using
paper prints where it is impossible to get the actual effect. With regard to networking, Jumbo has
identified trade fairs and conferences where potential clients might attend. By attending these
events, our personnel will network with potential buyers, thereby expanding the customer base.
Owing to the nature of the product, the inventory level is autonomously in preserved in a
software format. Therefore, the data is stored in discs, computers and backed up in cloud. For
this reason, there is no apparent need for storage rooms. The data is then transported by members
of our staff in the discs and installs it into the client’s computer.
Promotion strategy
Advertising objectives
The company seeks to achieve various objectives through the use of advertising. These
objectives include:
To increase the firm’s revenues and sales. Notably, this is the main goal that the firm seeks to
achieve through advertising (Pirraglia, n.d.). By advertising in online search engines, the
company will reach a significant proportion of its target market, thereby creating awareness
about the existence of the accounting software (Spacey, 2017). In turn, this would lead to an
increase in the customer base, thereby increasing the firm’s sales and profits.
To encourage Trial and Usage. The firm will also use advertising to encourage clients to try and
use the new software (Suttle, n.d.). This will act as a way of introducing the product to the target
market, and offer incentives to first-time subscribers to use the software. Indeed, an impressive
trial and usage creates an interest in the buyer to purchase the software for their firms.

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To develop a brand name. Jumbo software limited will also utilize advertising as a means to
develop a name for it (Claessens, 2018.). Specifically, the firm will advertise itself as the one-
stop solution for all accounting and bookkeeping requirements of a firm. By so doing, it will
develop a brand name as well as enhance the company’s image in the eyes of potential patrons.
Promotional mix
In addition, the company will also utilize a promotional mix strategy comprising of
personal selling, public relations, and sales promotion. First, the company will adopt public
relations as a promotional tool for its product (Lake, 2017). As a result, this strategy will help the
company build a positive public image, thereby raising the clientele base. In the same way, a
personal selling strategy will allow a one-on-one interaction between the firm’s staff and
customers, thereby giving the client a detailed overview of what the software will do for them.
On the other hand, a sales promotion will come in handy in stimulating consumer purchase
through the use of coupons and free trial periods (Lake, 2017). All in all, a combination of these
promotional strategies will help boost the company’s sales and revenues in the long run.
Product positioning strategy
For manufacturing companies and corporations that have a high requirement for
accounting and book keeping, the Jumbo accounting software creates and accountants manage
their records in an organized manner. Unlike our most aggressive competitor, the Jumbo
accounting software provides a system for scheduling, tracking and analyzing all records.

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Pricing Strategy
The company will adopt a value-based modeling combined with a digital distribution
pricing strategy for its accounting software. By so doing, the company will be able to maximize
continual revenue streams from its product (Carpenter, 2017). Furthermore, such a pricing
technique will provide the firm’s clients with the best buying option while generating regular and
reliable income steams for the company.
Pricing objectives
To obtain profit. The company will adopt the above pricing strategy with the aim of increasing
the maximum current profit of the firm, and allow it to make as much money as possible from
sales (McCormick, 2017). In addition, it seeks to earn a reasonable rate of return on the initial
investment into the firm.
To attain a growth in sales. The firm also uses the pricing strategy above as a means to increase
the sales volume by setting is price at an affordable rate (Uhlig, n.d.). This way, the level of sales
increases and grows gradually, thereby having a positive impact on the profits.
To face its competitors. The firm also intends to use its pricing strategy to remain competitive in
the market. As such, the company will set and modifies its pricing policies to respond to the
competitors. Thus, by ensuring that it has the most competitive prices, the firm will attract more
clients thereby securing a significant market share.

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Price Flexibility and Price levels
Jumbo will adopt a flexible pricing system to ensure that its prices remain competitive in the
market when compared to those of other rival firms. Even so, it is important for the firm to focus
on creating a stable price level system that guarantees its clients a consistent pricing throughout.
By so doing, it will be able to maintain a competitive edge in the market and secure a loyal
customer base for its product.
Conclusion
Jumbo accounting software has great potential of penetrating the market. Using the sound
marketing plan developed above, the firm can reach out to potential clients. Specifically, the use
of advertising, sales promotion, personal selling and public relations will go a long way in
increasing the company’s sales. In addition, a favorable pricing technique will give the firm a
competitive edge against its rival companies.

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Appendix
Product Life Cycle
The company’s product has a typical life cycle with various stages. Its cycle begins in the
development stage where the conception of the idea occurs and investment is injected to
manufacture. The product is then introduced into the market in the introduction stage. What
follows is the growth stage, then maturity stage and finally the decline stage.
Sales/profits
Introduction Growth Maturity Decline
Sales
Profits
Losses/investment

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References
Carpenter, H. (2017). Software Pricing Strategy Part I. Silicon Valley Research Group.
Retrieved March 19, 2018, from http://www.siliconvalleyrg.com/blog-2/software-
pricing-strategy-part-i
Claessens, M. (2018). Aims of Advertising – Setting Advertising Objectives. Marketing
Insider. Retrieved March 19, 2018, from https://marketing-insider.eu/aims-of-
advertising/
Lake, L. (2017). Learn About Promotional Mix in Marketing. The Balance. Retrieved March
19, 2018, from https://www.thebalance.com/what-is-promotional-mix-2295546
Marketing Mix – Place (Distribution Strategy). The Marketing Mix. Retrieved March 19,
2018, from http://marketingmix.co.uk/place/
Martin, W. (2014). Marketing Mix | Place in Four P’s. Cleverism. Retrieved March 19,
2018, from https://www.cleverism.com/place-four-ps-marketing-mix/
McCormick, M. (2017). Why Pricing Objectives are Fundamental to Business Success.
Black Curve. Retrieved March 19, 2018, from https://blog.blackcurve.com/why-
pricing-objectives-are-fundamental
Pirraglia, W. (2017). Advertising Objectives, Strategies & Tactics. Chron. Retrieved March
19, 2018, from http://smallbusiness.chron.com/advertising-objectives-strategies-
tactics-10303.html