* Try and be in a clearly defined market with a useful purpose. Eg 'word processing software', 'programming software', 'bug control software' are all examples of markets with a clear purpose. The alternative markets to word processing software are pens and paper, and the alternative to bug control software is fiddling around with lists in Excel. Try and be in a market that complements another bigger market (eg the Windows software market). Try not to be in a market where there are clear substitute markets, eg 'business consultancy' or some obscure web service.
* Your price should be around the average of the other suppliers in your market, or a little above average. It should not be significantly above or below (see prestige and inverse-prestige products discussed previously). This implies your product should look and be as good as other products in your market. If your product is significantly worse consumers will find out
and your demand curve will shift to the left.
* Try and make as many people as possible know about your product. This means blogs, click adverts in google, optimize your pages etc. If possible you want to increase quantity sold, even if this reduces profit, because this will increase demand later on. But don't reduce the price to such an extent that an inverse-prestige effect comes into play.
* Use market segmentation wisely. Segmentation must be clear so that everyone knows what everyone is paying and what everyone gets. Then nobody feels cheated. To do this, your product needs features that are justifiable in the higher priced versions. In software, the segmentation into Home editions, Professional editions and Enterprise editions seems clear. Different consumers can place themselves into the correct segment and get what they need.
* Don't bother making your software expensive and pretending it's a prestige product. It's not. Prestige products have labels like 'ferrari' or 'maserati' on them and are desired by millions of people in the western world. If you make your software expensive, then no matter how good it is, you are simply creating a tiny new market next to a large existing substitute
market.
* Improve the presentation and appearance of your product and website. They must look nice, must be easy to use and easy to install, and must give a professional impression. Common sense, really.
