Teratech

Problem Solution: TeraTech

TeraTech has been successful with their existing CRM product and in the Pharmaceutical industry. As CRM offerings go beyond basic functions and into modeling and analytics, the company needs to be presently looking for growth opportunities. TeraTech has proposed a new product would combine TeraTech's CRM expertise with analytics and modeling; the results would allow pharmaceutical companies to maximize the value of their data and refine their marketing efforts for maximum effectiveness. The CEO has given the Chief Marketing Officer (CMO), Christine DeFalco, the assignment of building a strategic marketing plan for this new product to present to the Board of Directors. DeFalco has many challenges and opportunities to view and outline in order for the company to reach to following objectives. TeraTech needs to develop a new product to maintain a competitive advantage, ensure future profitability and reach satisfactory customer service levels to enable TeraTech to stay a dominant factor in the pharmaceutical industry. TeraTech needs to remain competitive in the industry by developing new technology, organizing internally to meet new demands while developing marketing strategies for current and future products to better serve consumers.

Describe the Situation

Issue and Opportunity Identification

The following information is from the TeraTech scenario and is a brief description of some of the important events that led to the identification of the issues and opportunities that are listed in Table 1. There has become more competition for TeraTech recently. Competitors within the pharmaceutical industry are now offering CRM technology that goes beyond basic functions by adding modeling and analytical tools. Due to the rapid changes in technology, customer needs are not being met with the current TeraTech CRM product. After running the CRM system for two years, TeraTech is currently not meeting the ROI and sales targets that were expected. The marketing team has not been able to make use of the data located within the sales and customer service teams. Therefore, the marketing department wants to take into consideration expanding TeraTech's product to include analytical tools. If TeraTech integrates into their current CRM product new analytical capabilities and a tool that will be able to assist integrating customer data, this could create opportunities with customers in the pharmaceutical and other industries (ProQuest database, 2004).

Stakeholder Perspectives/Ethical Dilemmas

The following information will discuss the values of the key players and stakeholders in the TeraTech scenario. One of the key dilemmas that TeraTech has when looking at the values of Jack Dwyer, the CEO, and the other key players of the company is that their values are conflicting with each other. The management and employees need to have their perspectives aligned around a new marketing plan for a new CRM product with analytical tools in order for the company to sustain growth and increase profitability. Jack Dwyer, also the founder of TeraTech, stated that he has three main objectives that he wants the management team to specifically focus on in the development of a new marketing plan: more sales, a new analytical CRM product, and customer concerns. Christine DeFalco, the Chief Marketing Officer, needs to have the assistance of a management team with the skills and common goals to develop a marketing plan for the new CRM product to be presented to the Board of Directors. In contrast to the perspectives of the legal counsel and the VP of human resources, Chris Riggs, Christine's perspective is that TeraTech needs to look beyond the pharmaceutical industry to develop growth opportunities for TeraTech and the CEO's goal of developing a new CRM product. Initially, Christine presents the idea of possibly partnering with a company outside of the pharmaceutical industry in order to acquire the analytical tools that TeraTech's CRM product needs. June Corso, TeraTech's legal counsel, states that a partnership provides too many legal risks, and can possibly make it difficult for the company to remain focused on the customer needs. On the other hand, if an acquisition is conducted, many legal risks that can develop during a partnership process would be eliminated. Legal counsel and the CEO would not