Case Background

• For technical professionals, Matrix Software develops and offers productivity products.

• Organised into four functional groups: sales, marketing, and finance & administration

• had three main product lines, including the personal computer software application Mathcad.

• Application packs are product expansions that can be added to perform specialised tasks.

• MathStation is a sophisticated software programme created for workstations.

• PC market penetration was increasing by roughly 20% and engineering workstations by 40%.
Key Issues
• Low sales of Math-Station relative to projected or target sales

• Burn rate grew as a result of higher marketing and sales costs brought on by more salespeople.

• More cash is useless since investors are concerned about the company market and development plan

• Dispute between the vice presidents of sales and marketing over the distribution of resources for
telemarketing, field sales, and advertising
ALTERNATE OPTIONS
Channel Structure would be the best fit for the expanding product line in the matrix:-
• Distributor/retailer channel in Mathcad
• Have a market with poor profit margins, thus you need to raise sales to keep everything in balance.
• effectively control the distributors and concentrate on boosting the number of resellers
• Try to sell MathCad as part of software+program bundles to boost sales.
• Bundle requests for sales demonstrations to shorten the sales process.

• Mathematica: Sales Channel Fields

• Large dollar orders because workstations need packages of software - $45,000
• Because Mathstation is a sophisticated product, it requires technical support and services that must be
handled directly.
• The most important step was setting up the VAR since it would guarantee future demand.
Recommendation
Advertising:
• Cutting down advertising for Mathcad as product has moved from introductory stage and can use
that money to incrase sales forces for MathStation
• Maintain high advertising budget for MathStation with focus on electronic and mechanical journals
as conversions rate is highest for  these journals
Telemarketing:
• focus of telemarketers on selling APs and generating new leads 
• Use for Mathcad promotion by outbound telemarketers as MathStation required training
Personal selling
• MathStation is a technical product and require personal assistance 
• Build strong relationships with the buyers and VAR’s to sell in specialized markets 
• Modify your communication strategies and platforms in line with your product's PLC position.

• Increase your budget for the new product and advertise it vigorously.

• Reduce communication programmes and field sales for items that are still developing or maturing—MathCad

• For core products, big distributors should be kept on board, and new ones should be added for greater
penetration and reach.

• An expansion of the VAR network for MathStation's specialist clients and highly sophisticated items

• Due of the vastly better profit margins of MathStation-type products compared to Mathcad, advertising costs
should be decreased.

• Adjust to the sophistication of the buyer. The strategy used by the organisation should adapt as the needs of
the customer and their knowledge of the market and technology do.
THANKYOU