IBM Marketing Strategy – Marketing Strategy of IBM

IBM Marketing Strategy – Marketing Strategy of IBM: International company for business machines (popularly called IBM) with its headquarters in New York, United States was incorporated in 1911 under the name of Computer Tabulating Recording company which later altered its brand name IBM in 1924. 

The company’s main focus is Hardware-software, consultancy services, as well hosting, and consulting services. The company is divided into five strategic business units, which include Finance, Technology, Systems, Technologies, Services in Technology, software and services for business, etc. 

IBM At A Glance – Marketing Strategy of IBM

IBM Marketing Strategy

[wp-svg-icons icon=”office” wrap=”I”] Company : International Business Machines Corporation

[wp-svg-icons icon=”user” wrap=”I”] CEO: Arvind Krishna

[wp-svg-icons icon=”user” wrap=”I”] Founder: Charles Ranlett Flint

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: June 16, 1911, Endicott, NY

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Armonk, New York, U.S.

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: US$73.62 billion 

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income:  US$5.59 billion

[wp-svg-icons icon=”users” wrap=”I”] Number of employees : 345,900

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: IBM Cloud, IBM Cognos Analytics, IBM Planning Analytics, Watson, Information Management Software, Lotus Software, SPSS, ILOGT, ivoli Software, WebSphere, alphaWorks, Mashup Center, PureQuery, Fortran, IBM Quantum Experience, Mainframe, Power Systems, IBM storage, IBM Q System One

[wp-svg-icons icon=”globe” wrap=”I”] Website:

IBM Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Hewlett Packard | Xerox | Accenture | Oracle | SAS | SAP | SalesForce | Intel | Microsoft | Amazon | Google | Dell | Samsung | Apple | Sun Microsystems | Wipro | Infosys | Cap Gemini | Fujitsu


IBM Fun Facts: The company’s original logo was designed in 1924 when its name was changed to IBM. The current day logo was created only in 1972 by a graphic designer named Paul Rand and is meant to represent the innovation and expertise of the company.


Marketing Strategy of IBM

IBM’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of IBM? Let us discuss.

Segmentation, Targeting, Positioning – IBM Marketing Strategy

IBM is part of a broad business line and is among the top companies in the enterprise solution segment. It employs a combination of psychographic, geographic, and demographic segmentation variables. 

The selectively targeted method is employed in IBM to make specific products and services accessible to their customers according to their requirements. 

It employs a user benefit-based strategy to position itself. approach to establish it as a business that generates worth for all its shareholders throughout all aspects of the system of value-delivery system. 

IBM Mission Statement

Constantly delivering high value to the customers

IBM Vision Statement

“The premier global conference for finance, risk management, and sales compensation professionals.”

IBM Tagline

“Bright ideas and thought-provoking insights”

Competitive Advantage – IBM Marketing Strategy

Integrated Solutions:

IBM offers integrated solutions and products to its customers that leverage its deep expertise in varied industries and support from the broad ecosystem of its existing businesses and strategic alliances.

Strategic Business units:

Dealing in vast categories of businesses has helped the company in being focused and competitively ahead of its competitors when it comes to providing an array of solutions to the customers with the help of interrelated businesses.

Migration to higher technologies with existing resources:

The most important key differentiator on which IBM has been built is its ability to connect new & latest technologies with the existing systems in the enterprises

Data Analytics:

The proliferation of digital products & services, social mediums, and technology has brought a new set of opportunities for the company for data analytics. For seizing this opportunity IBM has invested more than $30 billion in building its capabilities in data analytics. One-third of its Research’s spending is on data analytics and cognitive computing.


BCG Matrix – IBM Marketing Strategy

Five Strategic Business Units ( SBU’s) collaborate to provide bundles of services to customers and simplify different sets of procedures. 

The Technology Services vertical provides IT infrastructure and integrated services in technology to its customers. It is a Star in the BCG matrix. 

The business services segment of the company is involved in two important business areas: Consulting and Application Management Services. It is a prominent part of the BCG matrix. 

Other businesses of its are a source of concern on the BCG matrix due to the many companies in the same segment. 

Distribution Strategy – IBM Marketing Strategy

IBM’s diverse functions like Research, Development, and Intellectual Property, integrated supply chain, and sales & distribution network play a crucial function in IBM’s value delivery system for its customers. 

IBM is present in more than 180 countries and has a workforce of professionals in client relations as well as consultants, product specialists, and fulfillment teams that help IBM not only create long-lasting business relationships but also assist to sustain business growth and technological innovation. 

Brand equity – IBM Marketing Strategy

IBM is ranked as 7 7 the world’s most valuable companies according to Forbes magazine’s list. The brand was valued at $142.7 billion at the time of its May 2016 publication ( market capitalization value method). The brand was initially known for its hardware systems that in the past have been transformed into a healthy company that offers IT as well as related solutions to customers. 

Competitive Analysis – IBM Marketing Strategy

The company operates in an extremely competitive setting in which it competes with other companies in various areas of its operations. Its competition ranges from MNC to smaller and niche companies. 

The company competes with its competitors in a variety of aspects like technologies, consulting services research and development price, quality, the variety of services and products IT infrastructure, cost distribution channels, and many others. The company is attempting to develop a strategy of moving to higher-value business segments and expanding the capabilities of its employees through strategic investments and acquisitions. 

Market Analysis – IBM Marketing Strategy

These emerging markets are the ones that are the source of the resources procured in all the sectors within which IBM is a participant. Emerging economies play a crucial part in influencing the market dynamic in the business. Factors like the cost of labor as well as policies of the government, political stability OEMs (original manufacturers of equipment), and competition between firms competing are impacting the entire industry. 

Customer Analysis – IBM Marketing Strategy

The customers of IBM are retailers, resellers and distributors, MNCs, government organizations, and many others. Since the company is involved in many different offerings, its customers vary depending on the nature of the product. 

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