Accounting Service Product/Market Business and Marketing
Name of Student
Course
Tutor
Date of Submission
I. Product
A. Rationale for selection
Global e-commerce services is the solution to the increasing demand for accounting problems poised to various companies. It is against this background that E-Commerce Accounting Service is selected to provide accounting solutions for all year round accounting services to our clients. The business will assist small scale and home based business and individual clients in finding accounting solutions.
B. Tangible component
The product will be highly significant as it would provide;
General accounting and book keeping services: – management of accounts payable and receivable, employee payroll accounts, designing of flexible internal control and working capital management.
Business Consulting & Advisory Services:- business and market plans development, training employees on use of accounting packages, and consultancy on payment systems to adopt
Financial Controller/CFO Services:- end year Financial Statement Analysis, budgetary and budgeting control, preparation of stakeholders reports , and filing of tax returns
C. Intangible component
The product will inherently;
Offer professional and competitive accounting services to the satisfaction of our clients
Assist clients to comply with various regulatory and administration accountancy regulation and rules and,
Act as referring agent of other accounting firms
D. Intellectual property
Our brand will be protected under intellectual property rights an initiative that will serve to protect our brand of services. This will involve protection of the copyrights and the trademarks such as the brand name protection. The unfair competition law will also be applied to the shapeup our brand so as to hinder unfair protection that would result to the closure o the business. Intellectual property rights of the E-Commerce Accounting Service will also be protected by security systems on the internet that are highly technological. The patent licensing and the product licensing will also be done to ensure that the company trades effectively.
E. Involvement
In view of the fact that customers can must have a complete confidence with global e-commerce accounting services due to the sensitivity involved in the field, high involvement will be required at all levels. There is high in the management team as well as in the research team as they all engage to learn about the customers and also to identify the niche market. The high involvement also arises as the team reaches out to find about the possible online and offline competition that arises and acts as a threat to the company.
F. Theory-based characteristics/considerations1.) Product life cycle
The current industry trend indicates that the services to be provided by the firm stand a good chance to successfully generate revenue. This positive trend is reinforced by relatively recent, May 22, 2009, survey by PaySimple and Market Platform Dynamics (MPD) that was released through the PRLog Press Release indicating that ‘over the next two years, small businesses believe more of their commerce will be done using electronic payments’ up from the current 50% users
a.) Affect on price
Our pricing will be affected by the relatively complexity of our product as it will aim at covering all the costs involved in; remunerations, running departments, taxation. It is however imperative to note that there would be lower overhead cost since being a service oriented company, there would be minimal manufacturing constraints.
b.) Affect on promotion
This analysis shows that there is potential growth in the adoption of modern payment methods that would necessitate professional and technical assistance to implement. The product life cycle will also affect the choice of how to promote our product. Creation of awareness is key to a successful entry into the market hence considerable finances will be attached to that effect. II. Market
A. Market
Though not the first entrant in the market, market analysis and surveys show existence of unrecognized yet potential clients as that can sustain the business. The Venture also bases the analysis on its unique products and plans to offer flexible consultancy service and also to incorporate expert information system to aid clients in decision making. 1.) Business to Consumer
Retail segment: this segment represents the small scale traders who mainly handle consumer goods. Given their number in United States, it is projected that a careful and aggressive marketing would ensure that the largest sales volumes are realized from this segment.
2.) Business to business
Service based business: this represents businesses which offer different services to their clients at a fee such car tracking companies. These companies use automated payment systems and would require set up as well as advisory services of the same.
B. Market segmentation
The potential clientele base has been segmented into three groups based on data from the established similar entities (Division of clients into groups). It is estimated that it will take 3 months to find customers and get established.1.) Demographic(s)
As noted above, the firm’s demographic profile will mainly be inclusive of; individuals in need of accounting services, small scale businesses and corporate clients. The three groups will have varying accounting needs, for example corporate clients may require check deposit and acceptance, tax advisory and end year accounting advisory services some of which may not be applicable to individual clients. 2.) Psychographic(s)
Our clients will be seeking highly qualified professionals with extensive theoretical knowledge with competent workforces who have undergone institutionalized training. We therefore indent to employ extremely well trained and competent individuals so as to enable us serve our clients with prestige and dignity. 3.) Geodemographic(s)
Geodemographics will be applicable as our firm will classify clients into different categories since geodemographic profile functions will help the firm make a number of choices. The location of our clients in addition to the clientele type; whether individual or corporate will be put into consideration since in our line of business, differences within these groups will be instrumental in proper service delivery thereby guaranteeing ultimate customer satisfaction. 4.) Diffusion of innovation
The company will develop and implement an Enterprise Resource Planning. This will ensure effective and efficient management of the organization and its customers as well as other stakeholders.
Website
The company will develop and implement a website which will serve the purpose of marketing as well online service requests.
Hardware
The company will utilize PCs and laptops. Printers for the necessary work will also be utilized although the company intends to be as paperless as possible. The scanners will be part of the hardware among other computer related accessories.
Recovery system
The company will acquire software which can assist in data recovery as well as use of Linux to ensure data security.
C. Place
a) Own-Web Based
By borrowing the latest technology our business will be web based, hence the business will construct interactive website, and have a 24 hour reliable online support to provide fast and efficient services as a tool for attracting and retaining customers. Seasoned ICT experts and experienced outsiders will be consulted before major decisions are made. Latest Computers with high speed and resolution will be bought to ensure fast and efficient Internet connectivity. Specifically, the various technical aspects that will enable the company to realize its goals effectively and efficiently.b.) Outsourced
The marketing and PR services will be outsourced. Each departmental head will be qualified and experienced so as to ensure competency in management and service delivery. The possible weaknesses like ineffectiveness of the management team will be addressed through regular trainings, succession management, change management and external consultancy. Conflicts will be addressed through arbitration, courts system, and enforcement of disciplinary2.) Telephone access
The company will control all its telephone access with all telephone networks handled by qualified technicians. The technicians will be able to respond from the branches where they will be managed from the main office through the development of the virtual office.3.) E-mail access
The company will utilize the use of emails in order to ensure that it reaches the largest number of clients within its area of operation. The area of operation is not restricted as the company intends to expand in future but for the start it will start with Connecticut.
D. Distribution
Both direct and indirect (though relatively shorter chains) will be employed.
Our business could use direct distribution system, where the services are directly offered by our employees such as tax returns and tax payment advisory services.
Indirect distribution system can be employed in the setting up of the electronic payment system where we would contract a thirds party to supply the soft wares to be installed. 1.) Logistics
A number of Service Delivery Procedures will be implemented once an engagement has been agreed. These would include;
drafting and delivery to the clients a formal business engagement letter detailing:-
Type and terms of engagement
Proposals of the initial plan for performing the contract
Outline of our expectations from the client during the contract period
Highlights the client’s responsibilities during implementation
Estimated project time line and normal cost on completion
Underlying legal and professional requirements from each party
The engagement letter represents a proposal of the contracts’ terms and can still be amended before commencement of the project.
The actual services are delivered according to the agreed on schedule.
Modes of Delivery
A number of delivery channels will be used after the completion of client’s accounting needs. These would include; Online delivery which will enable the materials to be delivered via the internet and CD-ROMs. E-mails, bulletins and online chats will be applied when communicating with the clients.
The company will also deliver products in form of parcels since over the recent years; parcel and express delivery have gained great significance in the global B2C eCommerce market as the medium has been embraced by both businesses and consumers. b.) Storage
The business will run as departmental functions, two departments, though matrix reporting relationship will be encouraged based on its mission statement. It is in the two departments that any accounting need specifications of the client will be stored furthermore; the functions will be divided into finance and administration, and research and development and resources management.c.) Shipment tracking capability
The engagement is reviewed periodically by AMS and the client to ensure that the goals are being met, deviations are recognized, and corrective controls and measures taken
Billing for the services rendered will be done upon completion of the engagement though notional recognition of revenue may be done when a significant portion of the work has been approved by client.
Follow ups will be made as after sales services for up to three months while upgrades will be done request under new terms.III. Promotion
A. Media/medium
To create awareness, a specified sum will be spent on promotional strategies. There will be discounts for frequenting clients during inception periods. Space will be bought on magazines and newspapers to market the entity. Aggressive marketing will also be carried out in social and business functions.
Paid ads will also feature in the local print and mass media, posters and brochures. Calendars promoting our business will also be published and distributed freely.
B. Appeals1.) Price/thrift-based
In order to promote our products and meet our sales goals, the enterprise will mainly apply a number of price based methods. Key among them will be price matching guarantees; hence we will analyze the pricing of our rivals and offer significant price cuts while maintaining our high level of services thereby not only attracting new customers but also creating customer loyalty. The enterprise also aims at implementing modern day price slashing strategy to reduce the ultimate prices to our customers thereby eliminating competition. 2.) Emotional, sentimental (affective) promotion strategies
The enterprise will attract customers by giving them ‘more than they expect.’ Bonuses will be a key strategy furthermore; personalization and follow-ups, especially calling them to ask whether they are satisfied by our services will be a key promotion strategy. IV. Price
Pricing of our services will be very competitive relative to the competitors’ rates and the prevailing industrial averages. The fees charged are based on professional projection of the expected returns. A benchmark rate will be a return of 10% on the service offered. Any support work not related to new implementations that is requested outside of normal hours will be charged at a 50% premium to the normal rate for that service or client.
A.) Discounts
The firm will also offer discounts especially to corporate clients with multiple accounting services needs. V. Strategic PlanA. Purpose1.) Vision statement
E-Commerce Accounting Service has the vision of providing quality solution and quality results to our esteemed customers by applying informed expertise to respond to our customer with precise specialized and thorough accounting services.2.) Mission statement
Our mission is to offer competitive and affordable accountancy, tax and auditing services, with the help of the latest technology and customer friendly-competent staff to the maximum satisfaction of all our clients and develop strategic plans to expand to other foreign markets.
B. Product value creation
1.) Competitive advantage
The provision of these service though remain very competitive and require personalized approach to marketing, the industry analysis shows that new players can still create innovative products and services and be able to survive competitively. The Operating Competitive Advantages for E-Commerce Accounting Service include;
Techniques
The operations described above are proven techniques similar to those used while performing similar consulting work during the course of my employment with a local accounting firm, an experience which extends to four decades. However, adjustments have been factored in a bid to reflect the current market situation, the technological changes, new customer requirements, the legal and professional accounting bodies’ rules and regulations.
Experience
Based on this analysis, both direct and indirect rivals posses similar experience as E-Commerce Accounting Service management’s as well as ability to pool more resources and human capital for their ventures. Advantageously, Economics of scale and direct costs of production do not exist for this industry thereby enabling us to compete effectively through;
Possible referral networks of clients (power of verbal communication)
Adoption and regular up grade of new versions of accounting software at affordable costs
However, extreme caution will be taken especially in both the use of several vendors’ products due to potential existence of business rivalry and open source software as well as trial versions because of lack of reliability and accountability. 2.) Customer satisfaction
The site is very strategic due to its close proximity to the target customers, accessibility and affordability of utilities and rental premises.
V. Tactical Plan
A. Strategy implementation
The three areas of market segmentation have been arrived at based on market research which identified existing gaps to be filled competitively. The study revealed that the small scale accountancy and related services clients are normally overlooked by large and established firms. These clients however have potential and capability to generate revenue in return for the services offered. 1.) Deploymenta.) Product
E-Commerce Accounting Service aims to offer accounting solution for all entries including taxation services, preparation of ledger accounts, accounts receivable and accounts payable, consistence evaluation of balance sheets as well as preparation of employees payrolls and companies billings and accounting, consulting & CFO services.
B. Product and Service description
Systems audit: the Company carries out regular and random systems audit for clients to verify and authenticate the integrity of their systems and the susceptibility to the internal control system to fraud. The areas checked include routine recording maintenance, invoicing, payroll updates among others
End of financial year consultancy services: in the process of making their end year financial reports, the firm acts as a one-off consultant to assist in making technical and legislative subjective decisions like treatment and estimation of depreciation, valuation of end year inventory, treatment of suspense accounts and adjustments of ledger entries.
In summary, we aim to offer all year round Accounting Services to our clients including;
General Accounting and Bookkeeping services:-
management of accounts payable and receivable
employee payroll accounts,
Designing of flexible internal control and.
Working capital management.
Business Consulting & Advisory Services:-
business and market plans development,
training employees on use of accounting packages, and
consultancy on payment systems to adopt
Financial Controller/CFO Services:-
end year Financial Statement Analysis,
budgetary and budgeting control,
preparation of stakeholders reports , and
Filing of tax returnsb.) Promotion
The establishment of the marketing department will not only offer competitive advantage bit also ensure that the target group is aware of our services. This shall be achieved through;
Personal visits to potential clients to create awareness
Secondly, we shall use posters, media, flyers and social networking sites like face book to create awareness on our services
To create awareness, a specified amount will be spent on promotional strategies. There will be discounts for frequenting clients during inception periods.
Space will be bought on magazines and newspapers to market the entity. Aggressive marketing will also be carried out in social and business functions
c.) Place
Operations for Accounting Management Systems are based in home office in CT. Most of the actual consulting services and meetings with clients will be performed at the client’s place of business.
The Equipment and materials required include the printing machines, photocopiers, computers, stationery, physical space, office suppliers, and internet access. Most of the materials will be purchased while the space will be rented before the launch of the business.C.) Goals and Objectives
Our working clientele based objectives to make E-Commerce Accounting Service a successful and competitive entity are:
To offer professional and competitive accounting services to the satisfaction of our clients
To assist clients to comply with various regulatory and administration accountancy regulation and rules
To act as referring agent of other accounting firms
References
Ahlstedt, M. (2007). Implementation of an IT based Marketing information system in a
High tech company. Hogskolan, Economics Department
Barone, L. (2009). Webinar: State of small Businesses in the United States. Retrieved
June 14, 2009, from HYPERLINK “http://smallbiztrends.com/2009/05/state-of-small-businesses.html” http://smallbiztrends.com/2009/05/state-of-small-businesses.html
Edward G, Malison, (1999).Writing up a Business Plan, London, McGraw Hill
Companies.
Horton, J.L., (2008). The Secret of service marketing. Accessed April 6, 2009, from
HYPERLINK “http://www.online-pr.com/Holding/ServiceMarketingSecret.pdf”http://www.online-pr.com/Holding/ServiceMarketingSecret.pdf.
Joyce P, Jennet, (2005).Creating Outlines for Small Business Plan. New York, University
Press
PRLog. (2008). Survey Finds Major Trend of US Small Businesses Looking to Adopt
Electronic Payments. Retrieved June 14, 2009, from
HYPERLINK “http://www.prlog.org/10074252-survey-finds-major-trend-of-us-small-businesses-looking-to-adopt-electronic-payments.html” http://www.prlog.org/10074252-survey-finds-major-trend-of-us-small-businesses-looking-to-adopt-electronic-payments.html
