New applications and software packages, like most other products, require market analysis so that software companies can make informed decisions about the size of the potential market, pricing and profitability. Market analysis is performed along several dimensions, including product mix and relationships. The market mix will allow software producers to gauge how a potential new product will do in the market, if it will cannibalize sales from existing products or perhaps create a new niche of demand. Market research is an important tool in this regard, as it provides information about the potential demand for a product as well as opinions about existing products, the perceived need for new products, and how consumers choose between competing products.
Market research can help identify the needs of different market segments. For example, suppose you want to evaluate the need for a sophisticated estate planning program. You would naturally be interested in the most upscale portion of the market, as they would be your best potential customers. To find and survey this audience, you can’t just send a team into the shopping mall, as it would be highly inefficient. Instead, you might find a broker to sell leads to you consisting of executives at large corporations, the types of people who might be interested in your product. You would also want to see the trends in the marketplace over a period of time, to gauge whether you are dealing with a growing market or one in decline.
For certain types of software, you might need to manage customer relations as part of the marketing effort. A software purchasing agent for a large financial company might make decisions that affect the demand for your product, so you will want to manage your long-term relationship with such an individual. This will also help with ancillary services related to the purchase of software, such as support for installation and maintenance.
You will have to look at marketing channels if you are producing software for the general consumer. Channels link produces to buyer, helping to define one or more routes to market (stores, Internet sales, TV promotions, etc.). You might look to develop variations of your software with more or fewer features, priced differently for different channels. You will want to make sure you have premium shelf space at stores that sell software, such as Best Buy, and that dealers always have a sufficient stock of inventory on hand. A well conceived marketing plan can make the difference between the success and failure of a new software product, so make sure to use the best quality experts to help you create your plan.