1C: software market Flashcards
marketing meaning
the effort to determine and meet the needs and wants of current and potential customers
four P’s of marketing
place, product, price, promotion
crucial requirement of maintaining software’s standing/position in market
consider social and ethical issues when developing marketing techniques and strategies
what is the marketing mix
the relative proportion of resources allocated to the effects of the four P’s of marketing
product: what is being sold?
selling an expectation of the product
- is poor marketing + unethical if product does not live up to expectations of customers
why should customer needs, requirements and expectations be understood before d+d process begins?
if this is not done, sales people will make exaggerated + false assertions about product capabilities, resulting in industry dissatisfaction and reduced sales, which is unethical
deciding factors on place where products are sold + effects
depends on type of product + intended audience
- effects: resulting ethical status + expectations of customers
where can products be sold
- shop fronts/software retailers
- industry specific distributors
- direct sales
general pricing responsibilities to industry specific distributors
to ensure pricing structure achieves balance that is fair + equitable for all
- be aware of: discounts for volume sales, favoring large volume distributors over small distributors
two types of pricing methods
- cost-plus pricing: cost of production + profit margin
- consumer-based pricing: looks at what consumer wants + how much they are willing to pay for it
- consumer-based pricing = more ethical
what does promotion consist of
all the ways used to persuade people to buy products/services
advertising vs promoting
advertising: helps consumers to see what is available in marketplace
promoting: allows consumers to make informed choices
effect of being dominant product
product becomes default purchase; e.g. Microsoft Windows as default operating system, where most users are familiar with Windows
list of dominating players in software market
- microsoft
- apple
- apache; open source web server market, with Microsoft’s IIS a close second
how do new players often emerge
inventiveness; a new software product which breaks new ground
e.g. google + facebook
