Microsoft Marketing Strategy – Marketing Strategy of Microsoft: Bill Gates founded Microsoft in 1975. The American MNC is the technology titan that makes the lives of people all over the world easy, comfortable, and more productive through its many offerings in personal computers, computer software, and consumer electronics.
It produces, develops licenses, and provides support services for the services. It is the largest company in the world and is ranked as one of the top 100 most valuable companies worldwide.
Microsoft At A Glance – Marketing Strategy of Microsoft
Company : Microsoft Corporation
CEO: Satya Nadella
Founder: Bill Gates | Paul Allen
Year founded: 4 April 1975, Albuquerque, New Mexico, United States
Headquarters: Redmond, Washington, United States,
Annual Revenue: US$138.6 Billion
Profit | Net income: US$46.3 Billion
Number of employees : 181,000
Products & Services: Bing | Bing Video | Cortana | docs.com | LinkedIn | Microsoft Azure | Microsoft Dynamics |Office | Microsoft Money | Microsoft Office Online | Microsoft Office 365 | Microsoft Windows Apps for iOS Applications available for Android Surface Pro | Microsoft Teams
Microsoft Fun Facts: At age 31, Bill Gates was officially the youngest billionaire in the world. This was 2 years after Microsoft Windows was released.
Marketing Strategy of Microsoft
Microsoft’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 Microsoft? Let us discuss.
Segmentation, Targeting, Positioning – Microsoft Marketing Strategy
To segment the market into groups with similar characteristics, the tech giant employs a mix of demographic and behavioral segmentation strategies. Segmentation Demographic is used to segment products such as Office products and Operating systems that are universally applicable. Behavioral segmentation can be used for products such as the Microsoft Windows server operating system and Windows mobile phones. It is used in a large number of hardware and software companies, ranging from mobile manufacturing and selling to operating systems.
Microsoft has a large product and service portfolio. This allows them to mix differentiated and undifferentiated targeting strategies. The population of office and Windows is homogenous. In operating systems, the target refers to the entire world that has access to computers. Microsoft must have a different target in mobiles and development tools because there is a lot to choose from and the market is split based on the features.
The company recently underwent a turnaround to reposition itself as an organization that is value-based and aims to improve the lives of people worldwide. Microsoft’s positioning means that its operating systems and many software are top-of-the-mind in the market. Any product that Microsoft launches is given a great positioning because of its brand values. It might not be the most prominent in every case. Example: Microsoft mobiles phones vs Samsung and Apple on the smartphone market.
Microsoft Mission Statement
“Empower every person and every organization on the planet to achieve more”.
Microsoft Vision Statement
“What we can do & who we want to become.”
“Your Potential, Our passion”
Competitive Advantage – Microsoft Marketing Strategy
Microsoft is in the business. It offers a wide range of products and services that gives it an edge over other companies around the globe. There are offerings for everything from Microsoft tablet to Xbox console gaming to software. The company’s meta market industry allows it to use shared capabilities to succeed in its functional business operations.
Microsoft’s acquisition strategy is one of its most significant competitive advantages. Microsoft has acquired many of the most prestigious companies around the globe, including Hotmail, Skype, and Nokia.
Microsoft also has a competitive advantage over Apple. Its operating system can be installed on any computer or laptop. There is no hardware binding. This is a key problem in the distribution of Apple Smartphones. This also means that there are huge losses due to piracy.
Microsoft’s product line is a major advantage. It is the most popular operating system for computers in the world and is nearly dominating that market when we compare global figures. Windows 10 was the last and latest version of its series and was offered as a free upgrade to Windows 7 owners. Microsoft has focused on TCO (Total Cost of Ownership) to make the software affordable and easily accessible to customers.
It also offers a solid product line, including Skype, Xbox series, mobile phones, Xbox games, browsers, search engines, Microsoft office, and Business solutions. It is, naturally, a huge organization. This is its competitive advantage.
BCG Matrix – Microsoft Marketing Strategy
The company’s Windows & Online Service Division and the business division that deals with client-side businesses are both stars. It is built on the Windows OS platform. With a high market share of OS, the software it offers seems to be attractive to customers. Apple recently overtook Microsoft as the most widely used operating system in its own country, the USA. However, the OS Windows is not comparable globally.
Both the Xbox 360 and the office suite are stars due to their high market share. However, there are constant direct and indirect competitors in both these segments. The former is from Nintendo and Sony, while the latter is from Open office and Kingsoft.
Its devices division, such as Zune or Microsoft phones, is facing stiff competition from the competitors in this segment. Therefore it is a question mark on the BCG matrix.
Distribution Strategy – Microsoft Marketing Strategy
The company’s wide distribution channel, and multi-channel strategy to make its products and services available to end customers have helped it increase its visibility & awareness. Microsoft makes its products and services easily accessible to customers through a large network of retail outlets, online sites, and exclusive showrooms.
The tie-up with OEM’s like Dell and HP is a key factor in Microsoft’s distribution as an Operating System. These companies then supply laptops already equipped with the Windows OS system.
Brand equity – Microsoft Marketing Strategy
In 2016, Microsoft was the 5th most valuable brand in the world! Microsoft’s operating system Windows is widely accepted in the market and has high TOMA (top of mind awareness) levels. It is also the oldest company in the technology sector. The company has always changed with the changing business environment.
Its campaigns like “Get the facts”, Scroogled, and many others helped to increase the brand visibility.
Competitive Analysis – Microsoft Marketing Strategy
Companies are now creating new products and services that meet the needs of their customers, thanks to the Hi-tech culture. This industry is booming because of the high acceptance of technological products. All over the globe, IT companies are striving to be the leader. Google has the largest rival to Microsoft.
Market Analysis – Microsoft Marketing Strategy
Microsoft is experiencing rapid growth due to the industry’s challenges and growth. This industry is outsourcing services to developing countries to lower their operating costs. Large numbers of clients can give the client-side bargaining power. Many companies on the market offer similar products
Customer analysis in Microsoft’s Marketing Strategy – Microsoft offers products and services for all ages and all types of customers, whether they are individual customers or enterprises.
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