Microsoft Marketing Mix

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Marketing Mix of Microsoft analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the business & marketing strategies of Microsoft.

Let us start the Microsoft Marketing Mix:

Product:

Microsoft is a Research and development driven company which identifies the customer needs even before they arise and launches a wide variety of products and services to cater for the same. Its portfolio has huge variety of software products catering to business enterprises dedicated to Gaming Devices. The products in the marketing mix of Microsoft cater to enterprises as well as consumers, and are available worldwide. Microsoft categorizes its products into the following segments:

1. Devices and Consumers:

• Devices and Consumer Licensing (Microsoft Windows Licensing, Microsoft Office 365 Licensing)

• Computing and Gaming Hardware (Xbox, Xbox 360, Surface Pro)

• Phone Hardware (NOKIA Lumia)

• Devices and Consumer Other Products (License Renewals for Office 365 etc.)

2. Commercial Products

• Commercial Licensing (Office 365 Professional Licensing)

• Commercial Others (Office 365 Commercial, Microsoft Azure)



Image: pixabay


Price:

Microsoft has captured major portion of the market but due to monopolistic conditions its pricing policy has been a mix of strategies:

• Market-oriented pricing strategy – Company sets the price of their product (higher/lower) post evaluating the prices & demand of similar products being offered in the market. Example- Company has premium priced its popular Operating System as its use is continuously increasing.

• Freemium pricing strategy – Under this strategy basic set of services of a product is offered for free but enhanced features are to be paid for, allowing trial before customers make the final purchase. Example –On devices with screen size up to 10 inches Office 365 can be used for free.

• Buy Only What You Use pricing strategy – Microsoft uses this for providing cloud services, under this plan customer is not charged a fixed amount instead he is supposed to pay only for how much he uses. This has made a huge buzz amidst the customers who use multiple devices.

Hence the price strategy in the Microsoft marketing mix simply highlights that being a market leader, it is the company which decides the product & service price.


Place:

Based upon the type of product Microsoft has various lines of distribution like:

• Microsoft’s official website and online store (e-commerce stores) are major source of revenue generation as through these customers can directly purchase or download software.

• Microsoft retail stores aims at improving customer experience and enhancing brand image by providing them an access to latest version of company’s products such as Xbox and smartphones.

• Microsoft authorized sellers are strategically located to be easily accessible to the target market. It operates through distributor network for Operating System and software packages which distributes the product to all retailers.

• Microsoft also targets OEM’S (laptop and desktop makers) to sell inbuilt OS and software.


Promotion:

The promotions of Microsoft have always highlighted reliability and usability of its products. Its promotional strategy in the marketing mix is very comprehensive and focused. Microsoft incurs major promotion expense for its premium products which have a large market share or for highly competitive products, for online products it uses digital marketing and advertising.

• Advertising – Microsoft incurs its major promotion expense on advertising over internet and television to enhance company’s corporate image. These advertisements focus on upgrades and product enhancements and are targeted at the end users of the software

• Sales promotions- Microsoft provides discounts and incentive to attract customers. Example- Students are offered Microsoft office software at a discounted price to increase sales volume, brand loyalty and prevent new entrants to capture market.

• Direct marketing –Microsoft uses this to have sales deal with organizations, like schools, colleges etc. Microsoft has also developed relationships with various OEM’s to sell their product.

• Personal selling – Sales Personnel at Microsoft retail store presents product features and encourage potential buyers for at least a trial.

• Public relations – To promote company’s image Microsoft uses a variety of programs but main PR strategy is fulfilled by Microsoft Philanthropies who look after donations and related activities. Hence, this summarizes the Microsoft marketing mix.


About Microsoft:

In 1975 Bill Gates founded Microsoft along with Paul Allen. It is an American multinational technology company with its headquarter in Washington and earns a net income of US$16.79 billion. Skype and LinkedIn have been acquired by Microsoft for $8.5 billion and $26.2 billion respectively. The idea initially was to manufacture only computers but soon they delved into software and Operating System segments, and thus introduced Windows and other such Microsoft Software.

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Browse 4Ps Analysis of more brands and companies similar to Microsoft Marketing Mix. The Marketing Mix section covers 4Ps and 7Ps of more than 300 brands in 2 categories.

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The names and other brand information used in the Marketing Mix section are properties of their respective companies. The companies are not associated with MBASkool in any way. The brand names are used purely for educational/academic purpose only.

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