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MARKETING MIX MICROSOFT

MICROSOFT MARKETING STRATEGY

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MICROSOFT



Microsoft was found in the year 1975 by a very young and highly exuberant Bill Gates along with entrepreneur Paul Allen. Microsoft, the American MNC is the technology giant which is making the life of the people around the globe convenient, comfortable and advanced through its various offerings in personal computers, consumer electronics & computer software.

It manufactures, develops licenses and provides supporting services for the products & services in its portfolio. It is world’s largest and one of the world’s most valuable company which is listed in Forbes top 100 companies of the world repeatedly.

The most benchmark products for which Microsoft is known across the globe are

  • Microsoft Windows
  • Bing
  • Microsoft visual studio
  • Skype
  • Internet explorer
  • Microsoft office
  • Xbox
  • Microsoft Games


MICROSOFT CORPORATION - MARKETING MIX (4P's) ANALYSIS.

Microsoft Corporation’s marketing mix is a showcase of how rapid innovation combines with effective approaches to maintain a strong share of the market. An organization’s marketing mix or 4Ps (Product, Place, Promotion & Price) determines the strategies and tactics for implementing a marketing plan.

An effective marketing mix (4Ps) enables Microsoft Corporation to maximize its sales revenues. However, an evolving marketing mix is necessary to maintain the company’s position in the computer hardware and software market.

1. PRODUCT MIX - MICROSOFT CORP.

Microsoft started as a software developer. However, the business has since grown to include an increasing variety of products, as shown in this element of the marketing mix. Microsoft categorizes its products, also known as the product mix, as follows:
  1. Devices :- (Personal Computes, Tablets,Xbox, Windows Phones.)
  2. Software :- ( Microsoft Office & Microsoft OS )
  3. Apps:- ( Microsoft Remote Desktop , Drawboard PDF )
  4. Games:- ( Solitaire, Microsoft Golf 3.0,
    Flight Simulator )
  5. Entertainment:- ( movies and songs)

2. PLACE/DISTRIBUTION MIX - MICROSOFT CORP.

Microsoft Corporation needs to maximize its reach in the computer hardware and software market. In this element of the marketing mix, the locations or places for transacting with customers are considered. In the case of Microsoft, the following venues are used to distribute products:
  1. Official website
  2. Authorised sellers
  3. Microsoft Stores

3. PROMOTIONAL MIX - MICROSOFT CORP.

Microsoft’s concern in this element of the marketing mix focuses on effective communication strategies and tactics used to attract target customers. Considering the conditions of the computer hardware and software market, the strategies and tactics in Microsoft’s promotional mix are prioritized as follows:
  1. Advertising (most significant)
  2. Sales Promotions
  3. Direct Marketing
  4. Personal Selling
  5. Public Relations

4. PRICES/PRICING MIX - MICROSOFT CORP.

Price points affect the attractiveness and sales performance of Microsoft’s products. The company must apply suitable pricing approaches to ensure effectiveness in addressing concerns in this element of the marketing mix. Microsoft uses the following pricing strategies:
  1. Market-oriented pricing strategy ( competitors’ pricing and consumer demand)
  2. Freemium pricing strategy (offering free product like Office 365 Cloud ) 
  3. Buy Only What You Use pricing strategy ( involves fees based on how much the customer actually uses, instead of fees per device.)

SWOT ANALYSIS - MICROSOFT CORP.

STRENGTH

  • REPUTED BRAND.
  • TECHNOLOGICALLY ADVANCED COMPANY
  • PRODUCT PORTFOLIO
  • EXTENSIVE DISTRIBUTION SYSTEM
  • WORLD LEADING OS

WEAKNESS

  • LEGAL PROCEEDINGS
  • NOT ABLE TO CURB ILLEGAL USE OF SOFTWARE (OS ,MS-OFFICE)
  • LAGGING IN INNOVATIONS

OPPORTUNITIES

  • SHIFTING TO BLADE & REZAR MODELS
  • DEMANDS OF SMARTPHONES.

THREATS

  • COMPETITIONS
  • RAPID TECHNOLOGY CHANGES
  • PIRATED MARKET

COMPETITIVE ADVANTAGES 

Microsoft is in the business of large no. of products & services which gives it edge over other companies in the world. It has offerings in Microsoft tablet to Xbox console games to software. 

One of the most important competitive advantages that Microsoft has over its competitors is its acquisition strategy. Microsoft have acquired some  of the best companies in the world like Hotmail, Skype, Nokia, Visio Corporation, Navision and many other small and big companies.


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