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There are numerous market models available for different companies to choose from in addressing the marketing aspects, however, a majority usually choose that fit in their operational programs as well as have the simplest of formats that eases the explanation and interpretation of information available (Gregoriou and Razvan 28). The choice of a particular market model for a company is usually influenced based on the five characteristics of the models used. Therefore, for every organization, the choice of a particular market model is usually influenced by the characteristics of the particular model.
Out of the four types of market models, SaaS Company operates depending on Perfect or Pure Competition Model. This is a type of market model in which ones success is influenced by the ability to outshine the competitor on the goods produced and the services rendered. In this instance, the competitors indeed work in a similar product line, with an aspect of equal quality of the products. The market influence is therefore, dependent upon influencing many buyers and having many suppliers for the products made for success (Gregoriou and Razvan 96).
Based on the five characteristics of the market model, each is directly aligned to the company’s market model. First is that the product in the most essential in the business operations. For SaaS, there is the building of customer systems, providing the customers with most appropriate product choices. The second characteristic is that there is cost/ value preposition. In a business where two or more companies are producing similar products and equal in value, it is substantively important that price be set at a lower value compared to the competitor’s value for success to be realized. SaaS, on this perspective provides cheaper products compared to the alternatives, provides a network of benefits which are not easily found with the other competitors, operates based on certain sophisticated technology models
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