c
 c


 
c  assist software firms to determine the type of market
analysis that is needed for decision-making. Two general strategies that are well known in the
marketing discipline are:

O? marketing mix; and

O? relationship marketing.

"Marketing mix" is the typical strategy for traditional mass marketers of product software in
competitive markets. Structured market research, and agility in reacting to sales, are
characteristic of their product development process (J

 


, 2000). An example
would be 
J, with their various home computer software games, which are
advertised on television and sold in many electronic stores.

"Relationship marketing", (closely associated to CRM), is used by product software companies

who focus on long-term customer relationships (J

 


, 2000). An example of this
is J, which offers enterprise resource planning systems, along with support (since the software
is complicated to install). Maintaining customer relationships helps sell additional modules and
future upgrades.

Broethers and van't Kruis explain two other strategies that are important to the growth of
software firms:

O? a service-based strategy; and

O? a different marketing channels strategy.

Information about customer preferences, observations of customer reactions, and knowledge of

past mistakes are important for the "service-based strategy". "Different marketing channels
strategy" tries to discover non-traditional marketing channels to help increase distribution of
software products to other target markets that take advantage of positional differences. "Alliance-
based strategies", on the other hand, are helpful at providing knowledge exchanges, opening
previously inaccessible markets (such as export markets), and an overall larger market access
(1997).

Besides helping with current strategies, market analysis can improve future planning and growth
strategies that are helpful in product roadmapping decisions. It also helps discover areas where
"complementary product development" and "diversification strategies" can be profitable.
Complementary goods can be in the form of other software products, hardware, or services, such
as consultancy, user training, and customization (ë


 , 1994). The development of these
goods increases the opportunities for companies in the software market (
, 1998). Even
complementary products from other vendors can lead to an increase in the value of the original
product, while reducing the time to market (

, 2004).

The complementary product strategy adds value by showing innovation, and creates a multiplier
effect on the original product (
, 1998). Investing in other products and services aids in
diversification, which can increase the overall customer base, and helps decrease the risks of
being overly specialized (ë


 , 1994). Diversification can, therefore, increase the
financial health of the company. An example of this is Microsoft, which has increased the sales
of its primary operating system software by offering products, such as word processing, and
media player software.

See also Marketing mix for product software.

D  
O? Alajoutsijarvi, Kimmo, Kari Mannermaa, and Henrikki Tikkanen. 









J











,
Information & Management, Volume: 37, Issue: 3 (April 1, 2000), pp:153±159.

O? Brouthers, Keith D. and Yvette M. van 't Kruis. 








 

!




, Volume: 30, Issue: 4 (August 1997), pp:
475±476 & 518±528.

O? Messerschmitt, D. G. and C. Szyperski. 



"








#, IEEE Software, Volume: 21, Issue: 3 (May/June 2004), pp:62±70.

O? Rao, P.M., and J. A. Klein. 













, Industrial Marketing Management, Volume: 23, Issue: 1 (February 1994), pp:
29±37.

O? Sengupta, S. 




 




$
J






, Journal of Product Innovation Management, Volume: 15, Issue: 4 (July
1998), pp: 352±367.

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?