Promotional Practice of Microsoft Corporation - Essay Example

Promotional Practice Introduction Microsoft Corporation started out as a partnership by Bill Gates and Paul Allen in 1975. They realize that personal computing is a path to the future by the idea of copying a document (A history of Windows, 2014). Microsoft has been developing the operating system known as Windows. Microsoft keep developing Windows included Window 3.0, Window 95, 98, 2000, XP etc until 2001; Microsoft launched Xbox (first edition) – the console of video games (Facts about Microsoft, 2014). By the time pass, Xbox 360 launched in 2005. After 8 years, the newest Xbox – Xbox 1 was launched as a new generation of gaming leader. In this Promotional Practice Report, I will mainly focus on the campaigns of the launch of Xbox 1. Campaign Objective Through the authenticity of the ads, to massive 75 cities experiential tour, to social campaigns that encourage their participation, to creative media executions that let fans become directly involved – we are inviting the world to celebrate the launch of Xbox One and it’s an invitation to a new generation of games and entertainment. And it showcases experiences that only Xbox One can deliver.” Said Robert Matthews, General Manager of Consumer Marketing, Xbox (Xbox One Launches Invitation to the world, 2013). SMART SMART is a guide how to set a valuable objective. Each letter in SMART refers to a different meaning included Specific, Measurable, Achievable, Relevant, and Timely. Microsoft did a great job about specific in the Xbox 1 campaign objective. It concerned about all the fans of Xbox should be involved, advertising over the world and 75 cities experiential tour, and the reason is to celebrate the launch of Xbox 1. Furthermore, it has to let people know the gaming and entertainment experiences can only be delivering by Xbox 1. However, it is not measureable and timely due to the objective does not mention about how many people should be involved within a specific time (Stross, 2005). DRIP DRIP is use to influence audiences by four different ways (Differentiate, Reinforce, Inform and Persuade) to differentiate or enhance the competitive of the product (Jill, 2009, p. 9). According to the campaign objective; it tries to reinforce people will have a new generation of games and entertainment that they have never experienced before by Xbox 1. Target audience The target audience for the new Xbox product will depend on different segmentation variables such as gender, buying situation, socio-economic group, race, age, geographical location, occupation, and ethnic group. Further, it also depends on early majority users, innovators, and early adopters. Marketing manager of the Xbox product need to understand that young people aged 15 to 40 is mostly likely to purchase the product as compared to adults aged 40 years and above. This is because young adults have a sense of technology and likes to experiment with new product. Therefore, in order to increase the sale of the Xbox, they should first target young adults. Additionally, socio-economic status and occupation of people affects their buying behaviors (Friedrick, 2009). In this case, middle class people are the ones who are likely to buy the product given that it needs someone to give out some good amount. In terms of gender, male customers are mostly likely to buy the product since they will view it as masculine as compared to females. Concerning ethnic group and race, people of certain ethnic group and race might opt to buy the product in accordance with how they perceive it and what it means to them (Graham, 2009). For instance, the African Africans and Latino Americans would buy the new Xbox product because it represents innovation, which everybody needs to embrace. The entrance of the product in the market would also depend on how people have been using technology in that country. For instance, innovative market will act first to purchase the product, the early would first experiment the effectiveness of Xbox 1 before buying in bulk. Geographical location is also vital. For instance, the new Xbox 1 needs to be marketed in continents such as Asia and Europe because these continents have more people who are likely to buy the product. Asia is the continent with more peoples in the world while Europe is strong economically, which means the possibility of people buying the product is high (Moser, 2006). Promotional tools Advertising The adverts were around the world on the TV shows such as NFL football games, The Big Bang Theory, X Factor, and The walking Dead etc. In addition, the campaign appears online, billboards and movie theaters. Personal selling Xbox One is selling on different retailer such as ASDA, Argos, Currys, and GAME. Public relation Xbox is the official sponsor of the NFL (football league) and the E3 (world’s premier trade show for computer and video games and related product). Media Broadcast Xbox One invested the advertising on the television included some famous TV shows and sport games. Print As the Xbox 1 launched, meanwhile the official Xbox magazine has changed name from X360 to Xbox 1. Digital The advertising of Xbox 1 appears online such as YouTube, Amazon. Furthermore, it appears on the gaming related live stream for example the League of Legend championship league. Outdoor The advertising on billboards, street furniture appears in many country and landmark like Times Square in New York City. In-store The point of purchase in the retailers with signs and displays Other Advertising appears between the trailers and showing in the game related exhibitions (Guiltinan, 2004). Promotion mix for X-Box one The promotion mix strategy involves the pull and push strategy. The push strategy advocates for the use of the sales force and trade promotion while the pull strategy calls for spending on sales and advertising promotion to build on the demand of the consumer (Aaker & Joachimsthaler, 2000). The push strategy persuades retailers and wholesalers to carry the brands of the company and to give the product shelf space. The pull strategy entices customers in trying new products and lures them from competitive products. The strategy also rewards loyal customers. It is significant to note that there are four components of a promotional mix. They include public relations, promotion, personal selling. In reference to Xbox 1, the company can use advertising. Advertising is a method that comprises of non-personal presentation of ideas of promotion that are paid for. The tools for advertising include brochures, web pages, posters, banners, and print advertisements that would aim to persuade people about the efficiency of using the new Xbox 1 product (Moser, 2006). Personal selling is a presentation made orally in a conversation between prospective buyers in an attempt to make sales. Personal selling would also be applicable in the marketing campaign for the Xbox 1. The target audience in personal selling varies depending on the situation and product. In this case, the audience includes college and university students, and businesses or organizations. Personal selling is a person-to-person interaction in which the wants and needs of the buyer get to be known and the seller seeks to satisfy them. The advantage of using personal selling is the fact that the seller will know the problems that a consumer encounters in the use of the product and the issues that the consumers want to be addressed. In addition, the seller gets a one on one chance of persuading a customer to buy the product (Xbox one) by demonstrating how to use it and the purposes of Xbox 1. Sales promotion entails short-term incentives that will encourage the purchase of Xbox 1. Sales promotion entails an activity that gives an incentive that is limited to a specific time. The advantage of sales promotion is that it stimulates market demand, consumer demand, and improvement in the availability of products. Example of sales promotion includes product samples, contests, rebates, sweepstakes, and exhibition. The promotional tool that is best applicable in the sale of Xbox 1 is the television and radio. Televisions are widely used by different people in the world. Therefore, the television adverts will also give a pictorial example of how Xbox 1 look like and the outlet store that the product can be found (Stevenson, 2011). Suitability of media and promotional tools used The major reasons for using media for Xbox promotion are the amplification of word-of-mouth marketing, general marketing, customer service, market research, innovation, co-innovation, public relations, and reputation management. Marketing through social networks has the ability to increase Xbox 1awareness, customer loyalty and web traffic while at the same time improving a business’s Search Engine Optimization (SEO) (Francis, 2009). This type of marketing can also increase the success of new product launches (Wilson, 2009). Media marketing such as the use of social media and televisions can utilize “untraditional tools to achieve conventional goals of marketing by employing creativity, community and relationships rather than big budgets to achieve objectives. Modern methods are truly powerful guerilla marketing strategies (Assael, 2011). Regardless of size and scope of operation, social media marketing presents competitive edges and various advantages for success. This is because social networks promote communication around products, services, and brands and by so doing enhancing both positive word of mouth around a business and its goods (Graham, 2009). The media is very suitable in promotional practice of Xbox 1 since its channels allow unlimited interactive dialogue between businesses and their current as well as prospective customers (Hiam & Charles, 2000). Media such as social sites and digital such as Amazon websites allow consumers to leave feedback and share their opinions with other consumers, future customers as well as the businesses themselves about their experience with Xbox 1. In addition, customers also have 6 the ability to request help from the company customer-support personnel. Business entrepreneurs have a direct interaction with their target audience allowing them to know their true thoughts, attitudes, and feelings about their products or services (Glasser, 1999). Such interaction is not only important because it informs businesses on what their customers really want, but also because it fosters positive relationships between companies and their customers (Friedrick, 2009). Also known as research and competitor monitoring, Media allows businesses to collect data on both consumers and competitors. In this case, Microsoft will acquire information from people regarding the effectiveness of Xbox because it can easily get numerous amounts of data on its Facebook page or Amazon and You tube. Therefore, the company can easily access information such as demographics, behavior, and characteristics of customers (Brassington & Pettitt, 2000). This data facilitates market insights helping Microsoft heads make wise and informed decisions. Further, the same media channels allow Microsoft to spy on its competitors such as Apple and therefore adjust accordingly. The company can watch on its competitor by reading content on their blogs, website, or social media forums. Conclusion The company has made good use of all the concepts both directly and indirectly. All the questions are tackled though not systematically. Application of promotional strategies such as personal selling will improves the company’s access to new customers in the market. Promotion of products is critical in the prosperity of a company. Microsoft needs to utilize the above-discussed promotional tools to market the Xbox 1 product. Recommendation For Microsoft to promote the Xbox 1 successfully, the marketing manager should focus on using Media especially digital and social media because they have an instant influence to the customer. Further, the use of media in the promotional practice will increase the brand awareness among consumers. References Aaker, D. & Joachimsthaler, E (2000). Brand leadership. New York: The Free Press. Assael, H. (2011). Consumer Behavior and Marketing Action, 4th Edition. USA: PWS-Kent. Brassington, F., & Pettitt, S, (2000). Principles of Marketing, Second Edition. New York: Prentice Hall. Graham, J. R. (2009). Making Marketing Work: Direct Marketing. New York: Kindle Books. Guiltinan, J. (2004). Marketing Management. 6th ed. New York: McGraw-Hill College Div. Glasser, W. (1999). Alternative Strategies to Social Promotion. Boston, MA: National Professional Resources, Inc. Friedrick, G.M. (2009). "Marketing Plns for New Products: Understanding hte Chasllenges and Planning for Them." Journal of Modern Marketing (1), 29-31. Francis, J.G. (2009). Overcoming Challenges in Marketing New Products. Hoboken, NJ: Guille Books. Hiam, A., & Charles D. S. (2009). The Portable MBA in Marketing. 2nd ed. New York: John Wiley & Sons, Inc. McDonald, M. (2011). Marketing plans: how to prepare them, how to use them. Chichester: Wiley. Moser, K. (2006). Mass customization strategies: development of a competence-based framework for identifying different mass customization strategies. München: Techn. Univ. The Economist Newspaper Limited. (2009). Mass customisation. Retrieved 24 March 2014 from http://www.economist.com/node/14299807 Stevenson, N.D. (2011). "understading Marketting and The Paradigms in the Market: The Food Industry." Marketing Research Journal 2 (1),13-21. Stross, R. (2005). The Microsoft way: The real story of how the Company outsmarts its competition. New York, NY: Basic Books. Wilson, J.D. (2009). Marketingin the new market Environemnt . New York, NY: Pearson Education Books. Read More