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    Market Segmentation in Software Services Companies - Dr. Arvind Tilak

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    rrahul89
    This document discusses market segmentation strategies for software marketing. It notes that software businesses are service-based and require building relationships with clients. There are many approaches to segmenting the market, such as by technology, project size, domain expertise, business process, or location. Properly segmenting the market allows software services to be tailored rather than commoditized. Effective segmentation also relies on client needs, customization, and integration. The document provides several examples of market segmentation strategies and considerations for software companies in developing domestic and international business.

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    Market Segmentation in Software Services Companies - Dr. Arvind Tilak

    Uploaded by

    rrahul89
    254 views16 pages
    This document discusses market segmentation strategies for software marketing. It notes that software businesses are service-based and require building relationships with clients. There are many approaches to segmenting the market, such as by technology, project size, domain expertise, business process, or location. Properly segmenting the market allows software services to be tailored rather than commoditized. Effective segmentation also relies on client needs, customization, and integration. The document provides several examples of market segmentation strategies and considerations for software companies in developing domestic and international business.

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    Market Segmentation in Software Services Companies - Dr. Arvind Tilak (1)

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    This document discusses market segmentation strategies for software marketing. It notes that software businesses are service-based and require building relationships with clients. There are many approaches to segmenting the market, such as by technology, project size, domain expertise, business process, or location. Properly segmenting the market allows software services to be tailored rather than commoditized. Effective segmentation also relies on client needs, customization, and integration. The document provides several examples of market segmentation strategies and considerations for software companies in developing domestic and international business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    254 views16 pages

    Market Segmentation in Software Services Companies - Dr. Arvind Tilak

    Uploaded by

    rrahul89
    This document discusses market segmentation strategies for software marketing. It notes that software businesses are service-based and require building relationships with clients. There are many approaches to segmenting the market, such as by technology, project size, domain expertise, business process, or location. Properly segmenting the market allows software services to be tailored rather than commoditized. Effective segmentation also relies on client needs, customization, and integration. The document provides several examples of market segmentation strategies and considerations for software companies in developing domestic and international business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 16

    Market Segmentation in

    Software Marketing
    - Dr. Arvind Tilak

    Software business
    Service business with all factors of a typical
    service business being applicable
    Relation ship based business is a norm
    Niche business segments with domain
    expertise driven models
    Software systems are business enablers and
    not business per say
    You have to share business secrets and
    knowledge to get most appropriate solutions

    Software Service marketing approaches


    Software Service Firm

    Software Service firm

    Software Service Firm

    Solutions companies

    Software Service Firm

    Service companies

    Software Service Firm

    Manufacturer

    Marketing Strategies

    Opportunity marketing
    Relationship based marketing
    Consultative marketing
    Indirect marketing
    Segmentation
    Mixed

    Advantages of Segmentation
    Markets are not black box markets
    Software services can not be commoditised
    Software solutions are dynamic business
    oriented solutions
    Client driving is essential for success
    Customization, localization, adaptation and
    integration component could be as high as 90%

    Segmenting Approaches
    1.
    2.
    3.
    4.
    5.
    6.
    7.

    Segment by technology
    Segments by size of project
    Segment by size of relationship
    Segment by domain expertise
    Segment by business process
    Segment by location
    Segment by costs

    Drivers for selecting a software partner


    Area

    Details

    Quality

    Certification; ISO; CMM Levels; BS Certification;


    Process Certification

    Expertise and
    domain knowledge

    Knowledge; Expertise; Resources and their background;


    Patents; IP held.

    Experience

    Previous projects; partners; client list and testimonials;


    Reusable components

    Size

    Infrastructure; Hardware facilities; local presence;

    Cost

    Competitive; Scalable;

    Procedural

    Project Management skills; processes;

    Company philosophy

    Pure projects business orientation


    Pure product business orientation
    Projects + products mixed orientation
    System integration orientation
    Consultancy orientation

    Solution orientation

    Market penetration strategies


    Strategic partner like a software house or
    system integrator
    End clients and end markets
    Client + Partner approach
    Product approach
    Niche solutions like financial market solutions

    Presence strategies

    Equity investments
    Joint Ventures
    Oversees Development Centers
    Technology participation
    Joint Development and marketing

    Internal organization
    Geographical areas
    Industry verticals like BFI
    Industry practice groups like remote
    monitoring
    Consultancy Groups like Security
    System integration groups like ERP
    ASP Model

    Impact of size on strategy

    Minimum mass
    Bane of middle size
    Inertia of large mass and size
    Resources driven strategy
    Risk management

    Oversees business

    Shortage of skilled and technical resources


    Costs
    Ramping up issues
    Time to market driven development
    Quality orientation

    Domestic Business
    Low technology penetration
    Senior managements are not techno
    oriented
    Costs are high and act as deterrent
    Manpower based options are still available
    Quality pressures are just starting to be felt
    Need for being competitiveness at global
    level is sinking in

    Questions?

    Thank You

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