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B2B Group 1 Matrix

The document discusses Matrix Software Inc., which sells productivity tools for technical professionals. It launched its first product, Mathcad, in 2006 and later introduced Mathstation. It distributes Mathcad through distributors and retailers while using a field sales force for Mathstation due to its higher price tag and need for support. The key issues are slower Mathcad sales, marketing expenses, and disagreements between executives. The problems addressed are determining the best channel structure for its growing line, appropriate communication programs, and how to allocate resources over time.

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Varun Sharma
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162 views6 pages

B2B Group 1 Matrix

The document discusses Matrix Software Inc., which sells productivity tools for technical professionals. It launched its first product, Mathcad, in 2006 and later introduced Mathstation. It distributes Mathcad through distributors and retailers while using a field sales force for Mathstation due to its higher price tag and need for support. The key issues are slower Mathcad sales, marketing expenses, and disagreements between executives. The problems addressed are determining the best channel structure for its growing line, appropriate communication programs, and how to allocate resources over time.

Uploaded by

Varun Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Matrix Software Inc.

Submitted By:

B2B-1 Group-1

Ishika Bahuguna 024022


Shubhangi Tiwari 024049
Varun Sharma 024064
Akanksha Kushwaha 133004
Case fact
● Matrix software Inc sell productivity tools for technical professional
● Company launched its first software product in July 2006: Mathcad
● Company’s introduced new high end software package: Mathstation
● Channel of distribution: Mathcad and Mathstation
 Distributors/Retailers
 Fields sales
 Telemarketing and direct mail

● Communication channel: Mathcad and Mathstation


 Advertising
 Public relations
 Telemarketing
Key Issue
● Slower sales of company core product
● Marketing and sales expenses
● Disagreement between thomas stone (vp of sales) & gordan gossage (vp of marketing)
● Investors worried about company marketing and product development program

Problem Statement
● What channel structure would provide the best fit for matrix growing product line?
● What types of communication programs were most appropriate for its target markets?
● How should matrix change its channel and communication program over time? In particular,
how should the company allocate its marketing and sales resources?
Q1 What channel structure would provide the best fit for matrix
growing product line?
● Mathcad: Distributor/retailer channel
○ Largely fragmented marketed with 4 million technical professional in the US and
estimated growth rate of 20%
○ Low transaction amount of the product having average distributor purchase price of $164
○ People purchase Mathcad product in bundle consisting of Mathcad Application Packs

● Mathstation: Fields Sales Channel


○ High geographic concentration of buyer with 8 million potential user worldwide and
estimated growth rate of 40%
○ Large dollar order as one Mathstation cost around $8950
○ Mathstation product require technical support and services , as it a complex product
What types of communication programs were most appropriate for
its target markets?
● Advertising:
○ Cutting down advertising for Mathcad as product has moved from introductory stage
○ Maintain higher advertising budget for MathStation with focus on electronic and
mechanical journals as they are the highest potential users and conversions rate is highest
in these journals
● Telemarketing:
○ Continue focus of telemarketers on selling APs
○ Use for Mathcad promotion by outbound telemarketers
● Personal selling
○ MathStation is very technical product and require personal assistance
○ Build strong relationships with the buyers
How should Matrix change its channel and communication program
over time? In particular, how should the company allocate its
marketing and sales resources?
● Change communication programs and channels with product position in
PLC
● Allocate higher resources to new product
● Pull back field sales and reduce communication program for products in
growth or maturity phase
● Large distributors should be retained for core products with needs of
increased penetration and spread
● Specialized distributors for highly technical products
● Advertising expense should be reduced and more focus on MathStation kind
of products as against Mathcad
● Change with buyer’s level of sophistication. As buyer’s requirements and
understanding of product technology and market changes, company’s
approach should also change

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