Market Analysis for Product Software

1257 WordsJul 21, 20076 Pages
Market analysis for product software Market analysis for product software consists of a number of techniques that allow an organization to collect and disseminate information from their external environment of software products for use in determining their market strategy and actions. For example, market analysis helps to determine critical strategies for new software products such as time-to-market length, creating product differentiation, creating and preserving supplier credibility, developing effective distribution channels, forming relationships with large customers, and managing market efforts (Igel & Islam, 2001). This topic has its roots in marketing discipline. Many types of market research techniques are used to gather this…show more content…
For consumers, psychological traits, such as risk-taker versus risk-avoider, play a great role in major decisions by the individual (Trondsen, 1996). Many other factors play a role for corporate buyers of product software. Businesses buy product software usually as an indirect material to help them increase the effectiveness of their processes. Trondsen describes the corporate buying process for product software. There is a complex interaction of individual and group goals working during the decision-making process that are constrained by available resources (1996). A technique for dealing with the buying process in a firm is the buying center. Many techniques are used to provide information on customers. Some examples are: Customer satisfaction dimensions Consumer surplus for software products Database marketing technique for software products Competitor Analysis for Product Software The final major area of analysis in market analysis is the industry itself. By knowing what is happening with competitors, a software company can adjust strategies to be more successful in the marketplace. Companies should know about market share percentages, strength and weaknesses, industry structure, and strategic groupings among other things to get a good picture of what the competitive environment is like. Strategic groupings can be in the form of alliances between product software firms. Competitor analysis is especially important
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