I am doing a project for school and I have to do the four P’s of the marketing strategy, but I do not know how to determine the market price. I know the procedures/steps of the cost benefit analysis, but for software development, what items do you take in consideration to become part of your cost? The project is a gambling software…
mikes-marketing-tools.com
April 11th, 2009 at 3:47 am
Get a calculator and sit down at the table and add the estimates. One more thing always go to the store with 20 dollars more.
April 14th, 2009 at 12:08 pm
Do an online search for a concept called Economic Value Added or EVA Analysis. Here is the premise: Find the next best alternative to your software package and figure out what benefits your software provides over that alternative. Then estimate the economic value of those benefits. Your price should then be based on the value of the benefits your software provides over the alternative.
April 15th, 2009 at 5:37 am
In general, pricing decision should be based on:
- total cost (production, financial, marketing, and admininstrative)
- price of the similar products in the market
- merits/demerits of your product compared with the similar product in the market
- Disposable Income
- the size of the user base
-geographical location
Production cost for the software is the:
- payment for estimated manhours
- depreciation expenses of the equipment and software tools used
- utilities