Microsoft’s Marketing Strategy | Marketing Strategy of Microsoft
Bill gates founded Microsoft in 1975. This American multinational company can be considered a technology giant that makes people’s lives convenient, advanced, and comfortable worldwide. Microsoft offers a different variety of services related to personal computers, computer software, and consumer electronics. It develops and manufactures licenses, provides supporting excellent quality services and products based on its portfolio. This world’s largest, one of the most valuable companies in the world, repeatedly listed in the top 100 Forbes ranking of companies, is not unknown to any. Microsoft’s Marketing Strategy has made it a leader in the IT industry.
Targeting, Segmentation and Positioning Strategy of Microsoft Marketing:
This giant tech company characterizes its customers based on behavioral and demographical segmentation strategies to create segments that relate to it. In the demographical segment, products like office-based products and operating systems are available to everyone. In the behavioral segment, products like window server, Microsoft, operating system related are available for Windows or Windows phones. It has its roots in many software and hardware businesses, from mobile selling and manufacturing to operating systems. As it has comprehensive services and product portfolio, Microsoft uses a combination of differentiated along with non-differentiated targeting tactics. While dealing with windows, offices, and the overall operating system, the population is equally distributed and the whole world having access to any computer is the target.
The company has been rebranding the products and logos of the services. It has undergone a remarkable turnaround to reposition as a value-based industry that aims to enrich people’s lives around the globe. While talking about Microsoft’s position in the market, its several software and operating systems are top minds positioned. The brand value of Microsoft is this excellent that any launched product gets a nice immediate positioning. But in few cases, like its window mobile phones, the market position is not that strong compared to Apple or Samsung. However, in the developer tool and mobile market, the competition is high, and preference by customers is given on the basis of offered features, so staying up-to-date and using a differentiated target strategy is necessary.
Microsoft’s mission is to empower every organization and every person around the globe to achieve better. Its vision is based on what can be done and the final goal with a tagline emphasizing the customer’s potential and the company’s passion.
Use of Competitive Advantage for Microsoft’s Marketing Strategy:
Microsoft has the benefit of a variety of offered services and products over other companies. Its comprehensive range offerings spreaded from Xbox console games, software to Microsoft tablets. Being a part of the meta-market industry provides an edge over many. One can excel through sharing capabilities. It’s another and significant competitive advantage is based on the big and small companies like Skype, Hotmail, Nokia, Navision, Vision Corporation etc. that he has acquired. Microsoft’s closest competitor is Apple. It is better because installing its software and operating system has no hardware binding, which is the main problem related to Apple smartphone distribution. But loss related to piracy is also huge. Another advantage that Microsoft has is its massive product line.
It is a worldwide leading provider of operating systems and owns a dominant industry position on the basis of worldwide figures. It offered a free upgrade of its latest window 10 to window 7 users. Microsoft has also worked on the total cost of ownership (TCO) so that software is economically and efficiently available to its users.
BCG Matrix Analysis of Microsoft’s Marketing Strategy:
Its online services, business division and window division dealing with consumers are stars as its bases are related to OS windows platform. With huge OS market shares, offered software by the company get more attraction and trust by consumers. However, it was overtaken by Apple’s operating system in the USA, which is the home country of Apple, but in the global market, OS windows are unbeatable. Office suites and Xbox 360 are stars with high market shares, but ongoing indirect and direct competition exists in these segments. In the former, open sources like Kingsoft, open office, and many others are offered in the earlier format, whereas Sony and Nintendo offer competition in the latter. Devices divisions like Zune, Microsoft phones etc. are a question mark placed in the BCG matrix due to strong competition by rivals.
Distribution Advantage as a part of Microsoft’s Marketing Strategy:
Its multi-channel strategy and wide channel distribution make its services and products available to its end customers and have helped this company enhance its awareness and visibility. It uses large retail outlets and e-commerce sites along with exclusive showrooms to make its services and products available to its end customers. Its distribution of operating system has a great key factor of its being tied up with HP, Dell, and other OEM’s. These companies provide laptops that are already installed OS window systems.
Brand Equity as a part of Microsoft’s Marketing Strategy:
In 2016, Microsoft became the 5th greatest valued brand in the world. It has high TOMA because of the great acceptability of window’s operating system in the market. Microsoft is one of the oldest/longest present tech sector companies and has continuously changed according to business environment changes. It used different campaigns like, “GET-THE-FACTS”, Scroogled, and many others that helped enhance brand visibility more than before.
Competitive Analysis as a part of Microsoft’s Marketing Strategy:
Hi-tech culture is emerging, innovative products creations by companies and services are according to customer needs. This kind of high acceptance and appreciation of technology and products change the industry into the hot cake. Every IT company is trying its best to take the prominent spot among which Google is a top rival of Microsoft.
Market Analysis as a part of Microsoft’s Marketing Strategy:
Microsoft has a rapid growth rate going up with the needs and challenges of the industry. Companies in this industry are trying to outsource their services and products from developing nations. This process is helping to decrease operational costs because the customer side has a variety of companies available in the market, giving clients the benefit of a bargain.
Customer Analysis as a part of Microsoft’s Marketing Strategy:
Microsoft has services and products for each age group and interest group, whether the customer is individual or based on a whole enterprise.
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