Strategic Management

Marketing Plan for the Capstone Project

Floyd Cooper III

Grand Canyon University

08/27/2014

Selected company: Microsoft

Target market

This is a group of consumers that a business organization directs its marketing efforts. A target market that is well defined is among the most fundamental parts of a successful marketing strategy.

Microsoft Inc has various target markets for its products and the most targeted consumers are young adults. After clearing college, young people go through various changes in their lives. Some look for jobs, others want to get married while others plan to buy their own homes. Throughout all these changes, the young adults always want to be connected to media and technology. Microsoft saw that this is a perfect opportunity to avail its products to the youth. The company has provided different software that can be used on various devices to keep the youth connected. Apart from young people, the company’s target market also includes businesses. The company provides various computer programs that businesses and offices can use in running their daily operations.

Size of potential target market

The potential target market basically refers to all customers that a business organization has the potential or reaching. The size of this market is virtual; it is not limited because depending on the efforts that the company puts in, its target market can cover the whole universe. But due to the different limits and constraints that exist in the market, it is not practical for a company to have the entire universe as its target market, instead, those customers that are likely to consume its products form the potential size of the target market.

Having Microsoft Corporation in mind, it is important to realize that the company engages in the production of personal computers, software and related products. This implies that the size of the potential target market of Microsoft is actual the segment of the market that is likely to demand Microsoft’s products. With relevant strategies and efforts, the company is able to reach its potential target market.

As stated earlier, young adults are among the primary targets of Microsoft. Basically all young people who need to use computer software are potentially target markets for Microsoft. But not all young adults consume Microsoft’s products due to the existence of competitors and other factors, but with proper marketing plan in place, the company can reach them. Businesses are also potentially Microsoft’s targets. The company produces products that can be consumed by these businesses. This implies that the company has the potential of having all businesses consume its products. The size of the potential target market of a company basically refers to the total consumers that the company could influence had there been no competitors as well as other factors.

4 p’s of marketing.

Product

Just like any other business organization, Microsoft too has it’s products which are subject to similar conditions like products of other companies. Microsoft’s products include windows operating system, office suite, and consumer electronics among others. These are the goods and services that the company offers to its consumers. The company realized that there is demand for the products and that that is why they are available to consumers to meet their demands. There are various ways through which marketers can ensure that the company realizes maximum returns. This can be achieved by expanding the product mix of the existing products by either increasing the depth of the product line increasing the quantity of product lines. It is upon the responsibility of marketers to make sure that the product is well positioned and the brand is exploited.

Pricing

Price in simple terms refers to the quantity that needs to be paid by a customer in order to acquire a product. The pricing strategy of a company is very crucial given the idea that it determines the company’s profitability. In some cases, It may be necessary for a business organization to adjust its prices depending on various factors. Microsoft prices its products competitively but this depends on both internal and external factors. Among the factors that affect Microsoft’s pricing is the production cost. This is directly related to the price at which products will be charged. The demand of the products in the market comes in as a factor that determines how much consumers will pay for products. Prices at which competitors sell their products also have a say in this. While pricing, the company should have its interests as well as the interests of consumers in mind. The price should be high enough for the company to make sufficient returns. It should also be low enough for consumers to comfortably afford.

Promotion

Promotion refers to all techniques that a marketer uses to communicate to the market about a particular product. Microsoft’s marketing team uses various methods to provide information about the products of the company. One of the methods is advertisements; this is done on various platforms that include the following: Internet, television, radio, print media among others. Promotion also takes the form of public relations whereby forums are organization and the company engages the public by informing them about their products. Sales promotions also are used here. In some cases, sales people move from one place to another with the aim of promoting the products of the company. In order to come up with the most effect way of promotion, the company must consider the kind of product being sold as well as its ability to reach the consumer.

Placement

Placement or distribution is concerned with availing the product where customers can access conveniently. In order to achieve this goal, Microsoft applies various strategies such as franchising, selective distribution, intensive distribution and exclusive distribution. The method depends on how easy it is for a customer to access the product. Placement is an important component of marketing because it enables a firm to know where to find products for its consumers. Through placement, products are availed at the most strategic places where they can easily be reached by consumers.

References

George, S. (2013). Science in marketing. New York: John Wiley and Sons

Keller, P. (2006). Marketing and Management. Upper Saddle River, NJ: Pearson Prentice Hall

Philip, K. (2012). Marketing Management. Upper Saddle River, NJ: Pearson Education

Luis, R. (2008). Management: People, Performance, Change, 3rd (ed). New York: McGraw-Hill