| Increase your marketing budget in a downturn? |
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Understand the FactsI will be the first to admit this is not a popular view but that doesn't make it wrong. With any type of marketing, you need to understand your market and study your competitors. Companies are cutting back on advertising more than ever but should they? If you look at the market for your company, does the decline in advertising match the decline in the marketplace? If the answer is no then the plan should be to "stay the course". There is no doubt that the market has declined for many companies but you can turn the tables for your company by increasing your market share. What is the best way to do that? Well the answer should be obvious. While your competitors are pulling their marketing budgets back, you should strongly consider keeping your budget in line with last years spending. Know your market and have a planLet me give you some very important advice that we have learned from our experience. You must have a plan before you start advertising. Let me say that again because it is very important. Develop a plan including a budget and stick to it. The sales cycle is not immediate and many times your sales and new customers are a direct result of marketing you did 4-6 weeks ago. When developing a plan make sure to budget for your sales cycle. If your company's sales cycle tells you it takes 6 weeks to generate a new customer then make sure you budget for at least that amount of time for your advertising. Also consider different delivery platforms when considering your advertising options. There are many options to effectively convey your message both in the traditional sense and on the Internet. A well thought out marketing strategy will go a long way for your company, especially in a time when you get more bang for the buck.
Both the developer and the buyer need to anticipate that the software will require modification in the future. Then, the process and pricing for this can be spelt out right at the start. If this is not done, the buyer may face various limitations when the software gets outdated.
If there is nothing in the agreement which prevents the developer from marketing the product to other potential users, the buyer may find that the special customised features of the software are very soon not exclusive any more.
In the creation of custom software it is usually implied that future developments too will be funded entirely by the buyer. Thus pricing parameters need to feature in the contract. Most software developers charge exorbitantly for adjustments to the software in the future. Such adjustments include increasing the number of users or locations or changing the software to suit the changing needs of the organisation. However if the buyer is able to anticipate such changes, the initial agreement can take them into consideration and future pricing can be mutually agreed upon. It is significant that the buyer’s negotiating power is the most at this stage. Pricing negotiations at a later date force the buyer to accept the developer’s rates or else be saddled with outdated technology.
It is not necessary that a new version of the software will support all modifications. Sometimes it may so happen that the modifications do not run at all and may need to be redeveloped. A problem may now arise if the initial agreement had laid out that the developer’s support obligation was conditional on the buyer using the latest version of the software. |
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