Integrated Marketing
Brian Chiduuro
MKTG4481_BrianChiduuro_ASSIGN1_1.docxBrian Chiduuro- T00525701
MKTG4481_ASSIGN1
Thompson Rivers University
Brian Chiduuro
Part 1: Proposal
Microsoft Company has for many years dominated the industry in many markets due to its diverse products it has been offering to its customers. The company penetrated the entertainment industry in 2001 with the launch of Xbox which was later extended to Xbox live due to addition of online features that enabled the customers to game online and subscribe to its products and services. The development of the X box has been prevalent, the intensification of the services gave birth to Xbox 360 and many series of Xbox such as Xbox One, Xbox One X and Xbox One S.
To bridge the gap between producers and consumer Microsoft uses a combination of strategies to reach as many customers as possible. Since 2009 the company has intensifies opening its stores around US and other countries with US alone the company has 106 stores, 8 stores in Canada, 1 in Australia, 1 Puerto Rico and another one in the works in the United Kingdom. The company has also utilized the other forms of reaching the customers by allowing other retails and online shops to sell its products e.g. Walmart and Amazon.
In ensuring efficiency marketing and communication the company has made it possible by the use of Xbox website (https://www.microsoft.com) creating awareness for the products has also propelled the company’s products a step ahead of its competitors. The launch of Xbox 360 was done on MTV and far ahead at the Electronic Entertainment Expo (E3) giving a complete detailed information of the product. The Xbox logo is very unique and has never changed since its inception creating a stronger brand recall. The online games can be played between different people across the globe ensuring word of mouth marketing. Besides these they have advertisements on magazines, internet sites and even online contests on their website providing customers appropriate rewards. All these promotional activities have helped maintain sales of Xbox. With the company’s specialty products and strategic marketing mix, the company has been able to thrive amidst of competition from PS4 Pro. (Thorsen, 2005).
Part 2: Introduction to Brand Audit.
Brand audit in marketing mix strategies is an examination of the brand’s position in the market (its performance with respect to the competitors product, it serves as a tool that guides the business on what to do in order to strengthen its brands position in the market. Since the inception of Xbox, the sole intention of the Xbox brand is to provide entertainment and the best possible console to make gaming more enjoyable and interactive. Having identified so, the company can hence focus on the attainment of the brands position in the market by the aid of marketing strategies that are viable in attainment of the products’ position. (Rosenberg, 2017).
The shareholders of the company relies heavily on the insights and the feedback from customers. The company to shape the marketing mix strategies and evaluate the performance of their brand in the market. Where the insight and feedback is positive, the stakeholders can as well bank on the marketing strategies in operational and where the feedback, the marketing strategies can be improved to better and efficient strategies. For example: In FY16, the Windows Insider program reached millions of customers and developers to gain their feedback on Windows 10, which helped shape key updates to the product” (Sawaya 2015). It is therefore with the shareholders to take into a consideration of the brands performance in the market with respect to the feedback and insights from the customers concerning the brand.
Direct competitors employs different strategies that may force another business to re-design its marketing strategies in order to thrive in the market. In this case, PS4 pro has a price range of US$349.99 and US$399.99 and bridged the gap between the consumers and the sellers. It initially sold it products in stores such as The Source, Best Buy, and large grocery store like Walmart. It can also be purchased online in the PlayStation store on Amazon, on the EB games site and many other channels. As a result Xbox has been forced to develop products that are pocket friendly and also intensified the marketing channels across US and other country this has been made possible by the company opening numerous stores in US and other countries. When it comes to marketing communication and promotion, the likes of PlayStation 4 pro has invested enormously in marketing of its products. In 2014, PS4 signed a major deal with Top Rank (a boxing promotions company) giving them an opportunity to be featured on all Pay-Per-View, HBO and Unimas giving them a higher visibility chance within the usual gaming users. In 2016, they signed a deal with Fiesta Bowl which is an American college football bowl game which takes place annually at the University of Phoenix. This multi-year deal will see PlayStation marketed as a sponsor at this event.
Part C: Brand Audit
The company focuses on carrying a perfect brand audit, to do so the company employs a triple comparative approach in the brand audit. The approach entails:
1. Identification of the target market segment. In this tool the company in question identifies the potential population that are likely to be attracted to the company’s products, the products are always designed to attack a specific group in the population. By focusing on the being an entertaining center, the target audience for Xbox One X no longer becomes “hard core gamers”. The hardcore gamers” market segment is composed of users within the ages of 16 and 30 and represents 32% of all video game users. At launch, Microsoft’s promotional messaging seemed to focus on how some of Microsoft’s other apps are integrated into the console, rather than technological upgrades; all of this in line with the One Strategy, One Microsoft. Target Market Segment #1
· Demographic:
· Psychological:
· Geographic:
Target Market Segment #2
· Demographic:
· Psychological:
· Geographic:
2. Differentiation points: whereas the Xbox One x and PlayStation 4 consoles are essentially built with the same technological building blocks, with a software library mostly populated by the same titles, Microsoft's focus on bringing its back catalogue across to a recent hardware is a clear point of differentiation with the competition.
3. Positioning: the Xbox one X was unveiled at the Electronic Entertainment Expo 3, which see many gaming fans and influencers in attendance. This positions it on the frontline of the market, because they offer some of the consoles to the influencers who then talk about the consoles in their blogs, YouTube channels, Instagram etc. This then allows Xbox One X to be on the forefront of the minds of gamers alike.
4. Relevance: the Xbox brand is perceived as a good brand by the masses since in 2016 it ranked 11th on the Prophet Brand relevancy index.
5. Identity: the Xbox is identified an entertainment unit.
6. Relationships: for their release in 2017, Xbox One X teamed up with Taco Bell.
Part D: Conclusion
Brand positioning is the key element for the success of a product in the market the process involves placing the commodity in the customers mind that when they think of buying they cannot do so without putting considerations into your product. Reis and Trout’s bestselling popularized brand positioning in their famous work “the battle for your mind” they idea behind this was that the companies should seek to own a market niche by providing with its necessities. They also defines brand positioning as strategic ways of getting a brand into peoples mind.
After conducting research and conducting the brand audit if feel strongly that the Xbox brand needs a stronger brand equity. I say this because when it first came out in 2001, the original Xbox was situated as an innovation in gaming – it designs where strongly masculine with the intention of aiming its marketing towards the ‘hardcore’ male gamers. Microsoft wanted to be perceived as and distinguish itself by providing a product that was superior and with most emphasis on intense gameplay. These assumptions resonated well with the core audience of the Xbox. However, as the Microsoft is seeking to inflate the appeal its appeal of the newer console the Xbox One X, it must overcome the challenges of this initial brand association.
Currently the brand is perceived as expensive with competitors boasting lower prices than the Xbox X. The PS4 has starting prices of US$399,. All three consoles come with an HDMI cable and a hand-held controller. Because the consumer perceives that the brand is expensive since the other competitors are providing so much more value at a lesser price. (Michael & Brandon, 2016). The job of the marketer then becomes to suggest that other components of the game such as the Kinect and online activities make the Xbox worth the extra dollars from the consumer. The brand can focus on diversifying the target market of the brand so that it appeals to more that it’s current target of males between the ages of 16-36. Get the customer to view the brand as having more value for the price that the price that the consumer is paying.
In the past Microsoft as the parent company to Xbox One X, has used their public relations in a positive light for example when they announced the release of the Xbox One X at the Entertainment Expo 3 which is one of the largest gaming entertainment convention. Xbox One X can piggy back off that public relations in social media and engage with their customer. Also using social media as a mass marketing opportunity.
References
Thorsen T. (2005). Microsoft announces the Xbox 360, confirms worldwide 2005 launch. Retrieved from.
Microsoft Corporation. Retrieved from. https://www.sec.gov/Archives/edgar/data/789019/000119312516662209/d187868d10k.htm
Rosenberg. A. (2017). Xbox One X is the perfect representation of the tech industry's existential crisis. Retrieved from. https://mashable.com/2017/11/03/xbox-one-x-review/#onHmECsF2qqO
Longworth G. (2015). PlayStation is the Official Gaming Partner of Top Rank Boxing
Retrieved from. https://blog.us.playstation.com/2014/04/07/playstation-is-the-official-gaming-partner-of-top-rank-boxing/
Michael S., &Brandon M. (2016). PlayStation Signs Multiyear Deal To Become Title Sponsor Of Fiesta Bowl. Retrieved from. https://www.sportsbusinessdaily.com/Daily/Issues/2016/11/16/Marketing-and-Sponsorship/PlayStation.aspx
