What is the total market population?
What portion is interested? (Potential)
What portion is funded? (Available)
What is your specific target? (Targeted)
Who in your target has already purchase a product? (Penetrated)
How is the market now satisfying the need your software satisfies?
What are the switching costs for potential users for your market?
What are the positions of the competition?
Is your company small and flexible?
Do you offer low cost and high quality?
Does your product offer unique benefits?
Are you the first on the market with this product (First mover advantage)?
Is your post-sales service better?
Do you have a larger network of experts?
Directly against a Competitor
Away from a Competitor
To identify a niche market, a series of 2 by 2 matrixes can be used to identify an area that is being overlooked by larger competitors. The competitors are mapped on this matrix and you can see where there may be some opportunities.
Mass Marketing or Undifferentiated Marketing
Product-variety Marketing or Differentiated Marketing
Target Marketing or Concentrated Marketing
The differences that are promoted for a product must be:
To (target audience), (product name) is the type of (product) that (performs this task)