SaleSoft, Inc.

Marketing Management
-Group 5
Agenda
 SaleSoft’s Dilemma
 Case study Overview
 Benefits of PROCEED
 Benefits of Trojan Horse
 Pricing
 Project Timelines
 Recommendations
SaleSoft’s Dilemma
 SaleSoft is currently marketing PROCEED – a
Comprehensive Sales Automation software

 The Trojan Horse Opportunity

 SaleSoft’s CEO – Greg Miller

Continue with PROCEED for select customers
or
Launch TH to a much larger customer base
Sales Automation Industry
 Provides software to Automate processes in
sales order cycle

Mark Custo
Sales mer
eting
functi
func Service
functio
ons tions ns
 Market
Complai
◦ $1 Billion; growing 40%
Telema annually
Account
●
●
●
managem nt
rketing ent, tracking,
, direct Salesforce re-
 B2B Consumer
mail Preference
managem purchase
ent details
◦ Buy turn-key solutions from one vendor
Types of SA Solutions
 CMS
◦ Low-end solution, e.g. ACT by Symantec
◦ Used by salespeople differently

 CSAS
◦ High-end solution, e.g. PROCEED
◦ Integrated, collaborative solution for the entire
organization
◦ Multi-level, cross-functional, team-selling approach

 In June 1994, no integrated CSAS products available

CSAS Realization

Buying Cycle
Evaluate potential to automate

Different functions - related

CSAS Vendors SA
Consultants
Type of SA software & hardware

Pilot test the customized CSAS

Partnership

Feedback- Modify
PROCEED SMRP
Allowed customers to automate their entire marketing, sales and
customer service operations

Ready- Three modules

Estimated- $1 Billion to roll out other 5 modules in 8 months

Sales Marketin Service

System g System Systems
●
Campaign
●
Field Sales
Management
●
Opportunity ●
Incident tracking
●
Marketing
Management ●
Relationship
Encyclopedia
●
Sales Management
●
Literature
management
Fulfillment
SaleSoft - financials
Founded in 1993, to develop and market CSAS systems
Eq A N

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1993

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The Trojan Horse
 Need for a Selling Management Software
 Sales Forecast
 Review sales closure dates
 Manage gaps in performance
 Analyze sales activity
 Review competitive behavior

 Why ?
 Get new broad-based customers
 Gain quick sales
 Generate needed revenue
Benefits of PROCEED- CSAS
 Saving due to reduced cycle time

Company Old cycle New cycle Sales New sale

time time

A (Fin Services) 120 days 114 days $120 M $126.32 M

B (Comp H/w) 180 days 165 days $350 M $381.82 M

Benefits of PROCEED- CSAS
 Saving on retaining sales people

Company Employee No of Sales per Savings

retaining productive employee
days per day
A (Fin Services) 2.4 60 .003M .432M
B (Comp H/w) 13.125 90 .0065 M 7.677M
Benefits of PROCEED- CSAS
 Saving due to reduced training time

Company New No of Sales per Savings

retaining productive employee
days per day
A (Fin Services) 21.6 14 .003M .9072 M
B (Comp H/w) 104.125 20 .0065 M 13.53625 M
Expenses
A(Fin Services) B (Comp H/w)
Proceed License fee $ 600,000 $1,440,000
Implementation & $180,000 $ 430,000
Training
Support and $ 36,000 $86,000
maintenance
Hardware $1,500,000 $3,600,000
A (Fin Services)
$ 2.316 M B
$ (Comp
6.33 M H/w)
Reduced cycle time $ 6.32 M $ 31.82
Retained people $ 0. 432 M $ 7.677M
Reduced cycle time $ 0.9072 M $ 13.53625 M

$ 7.6592 M $ 53.03325 M
Customers’ perceived value of TH

 PROCEED and TH are targeted to different

markets
◦ TH lies between CMS and CSAS
◦ TH’s customers need specialized sales product
◦ Enables sales forecasting process
◦ Manages the sales pipeline better
◦ Reduces the selling time cycle by 2-3 %
Customers’ perceived value of PROCEED
 Allows sales persons complete functionalities without the whole
system
 Compatibility with Microsoft Windows = large base of customers
 Effective and efficient means for rapidly transferring qualified leads
 Provides management with data for evaluating marketing campaigns
 Consistency and timely availability of all marketing and sales info
 Tracks the usage and inventory of marketing resources
 Provides management with continuous feedback from customers
 Generates new sales opportunity from existing customers
 Tracks all customer services issues to the ultimate resolution
 Provides repository for all customer information
 Difference between TH and PROCEED
 TH is focused only on sales
 Quantifying the benefits of TH is easier
 Selling process is simpler for TH
◦ Time taken to sell the TH is one-third
 TH needs minimal customization
 Marketing cost per TH user is one-third
4 Ps PROCEED TH
CSAS used for sales,
Focused only on
Product marketing & customer
services sales

Range from $400

Pricing $2400
- $1000

Placement High end users Mid-level

Through SA December
Promotion
Consultants conference- launch
Pricing Strategies
 Markup Pricing  Price Skimming
 Target-Return Pricing  Product Line Pricing
 Perceived Value  Psychological Pricing
Pricing  Optional Pricing
 Value Pricing  Captive Pricing
 Going-Rate Pricing  Product Bundle Pricing
 Auction Type Pricing  Promotional Pricing
 Premium Pricing  Geographical Pricing
 Penetration Pricing
 Economy Pricing
Price/Quality Relationship
High Price

Skimming Premium

Low Quality High Quality

Economy Penetration

Low Price
Pricing Strategies
 Markup Pricing  Price Skimming
 Target-Return Pricing  Product Line Pricing
 Perceived Value  Psychological Pricing
Pricing  Optional Pricing
 Value Pricing  Captive Pricing
 Going-Rate Pricing  Product Bundle Pricing
 Auction Type Pricing  Promotional Pricing
 Premium Pricing  Geographical Pricing
 Penetration Pricing
 Economy Pricing
Pricing Strategy
 Markup Pricing
◦ Cost per user
◦ $1,000,000 / 4000 users = $250 per user

Markup percentage Price

20% $ 315
30% $ 360
40% $ 420
50% $ 500
Pricing Strategy
 Target-Return Pricing
◦ Unit Cost = $250 per user
◦ Investment Capital = $1.8 million

Desired Return Price

20% $ 340
30% $ 385
40% $ 430
50% $ 475
Pricing Strategy
 Perceived Value Pricing
◦ Base Price = $400 per user

Premium on
Sales Forecasting $ 30
Reduced Selling Cycle $ 50
Lead Generation $ 40
Total Price $ 520
Pricing Strategy
 Premium Pricing
◦ $1,000 and above

 Penetration Pricing
◦ Between $250 and $400 initially, gradually raised

 Price Skimming
◦ Initially $1000, reduced to $400 gradually
Timeline- only PROCEED
Timeline- PROCEED + TH
Final Recommendations
 To go all out with Trojan Horse
◦ Development Team free to work on PROCEED after
3 months
◦ Sales Team may need to expand

 Pricing
◦ Perceived Value Pricing - around $520