2. Sony Corporation
Founded in 1946 by Masaru Ibuka and Akio Morita in
Japan
Global company specializing in consumer electronics
and video games
PlayStation (1991), PlayStation 2 (2000), PlayStation 3
(2006), PlayStation 4 (2013)
Music industry and film industry (Amazing Spiderman)
At a glance
One of the largest Japanese corporations
Shares valued at $15 billion
Excellent environmental record
3. Product: PlayStation 4
Introduced in 2013
Home video game console
Direct competition with
Xbox One and Wii U
Focus on social integration
with gameplay
Dynamic user interface
with app compatibility
PlayStation Network and
PlayStation Plus
5. Communications: Steps 1-4
Target Audience:
Depends on available games
Wide market, appeals to a lot of consumers
Communications Objectives:
Brand awareness and need for the product
Extremely popular Hyperlink
Communications Design:
Message, Creative, and Message Source Strategies
Communications Channels:
Focus on television and online ads
Reviews by top gaming critics
Attachment to games available on system
6. Budgeting: Step 5
Four common methods:
Affordable method,
percentage-of-sales method,
competitive-parity method,
and the objective-and-task
method
Objective-and-Task
Rumored $100 million total
communications budget for
PlayStation 4 on launch
2014 advertising budget for
early 2014
Huge market penetration
online and on television
Sales
7. Communications Mix (Step 6) & Establishing
Customer Loyalty
What communications types will be utilized and in what
amounts?
Advertising: $100 million budget
Sales Promotions: Coupon and Promotion codes
PR and Publicity: Press releases
Events/Experiences: E3, My Road to Greatness Tour
Direct/Interactive: Paid reviewers
Word-of-Mouth: Unpaid reviewers and fans
Personal Selling: Not utilized
Brand equity and customer loyalty
Established via quality, quantity of games, and customer value
10. Allen, S. (2013, January 1). 81% Of IGN Viewers Say Sony Won E3 - IGN. Retrieved November 17, 2014, from
http://www.ign.com/articles/2013/06/15/who-is-winning-e3
IGN. (2013, October 14). Official PlayStation 4 Perfect Day Commercial. Retrieved November 17, 2014, from
https://www.youtube.com/watch?v=VK03aVJekGg
IGN. (2014, January 16). Xbox One vs. PlayStation 4 - The Results - IGN Versus. Retrieved November 17, 2014, from
https://www.youtube.com/watch?v=pz2HxC2wAsA
Kotler, P., & Keller, K. (2012). Marketing Management (14th ed.). Upple Saddle River, NJ: Pearson Prentice Hall.
Makuch, E. (2014, October 30). PS4 Dominates Xbox One in Ubisoft Platform Sales Charts. Retrieved November 17,
2014, from http://www.gamespot.com/articles/ps4-dominates-xbox-one-in-ubisoft-platform-sales-c/1100-6423280/
Moriarty, C. (2014, April 24). Sony Reveals PlayStation 4's 'Road to Greatness' Tour - IGN. Retrieved November 17, 2014,
from http://www.ign.com/articles/2014/04/24/sony-reveals-playstation-4s-road-to-greatness-tour
Peckham, M. (2015, August 15). Microsoft Silent On Xbox One Sales as PlayStation 4 Wins July. Retrieved November 17,
2014, from http://time.com/3116454/npd-july-console-sales/
Sony Global - History. (2014, January 1). Retrieved November 17, 2014, from
http://www.sony.net/SonyInfo/CorporateInfo/History/
ThePlayStationN4tion. (2013, October 21). PlayStation - Official "4 The Players since 1995" Commercial. Retrieved
November 17, 2014, from https://www.youtube.com/watch?v=W7vaMAtGSFM
Usher, W. (2014, July 28). Sony Has Spent $59 Million On PS4 Ads In Five Months. Retrieved November 17, 2014, from
http://www.cinemablend.com/games/Sony-Has-Spent-59-Million-PS4-Ads-Five-Months-64964.html
References
Editor's Notes
-Sony Corporation was established in 1946 within Japan during WWII
-focus on creating high quality electronic products, most notably radios
-electronics (portable radios) appealed to teens in America
-gateway into American market; improved American thoughts of Made in Japan products
-excellent quality=above market prices
-Creation of compact discs (CDs) with PlayStation 1 in early 1990s
-saved Sony after 1980’s recession
-many periphery markets, but huge focus on the younger crowd
-emphasis on creativity and ability to “enter new worlds”
-make.believe = motto
-large Japanese corporation
-grew from WWII, in which Japan was involved
-expert integration into American markets
-recent financial struggles due to new competition (Xbox, Wii)
-concerned with selling environmentally friendly products
-Ranked 14th by Greenpeace guide
-Introduced in 2013 as part of the 8th generation video game consoles along with the Xbox One and Wii U
-focus on social integration with gameplay
-ability to upload gaming content
-online multiplayer
-compatible with certain applications from cellular devices
-dynamic user interface
-customizable and easy to use
-PSN and PS Plus
-online connection service that allows other PS users to interact with each other
-PS Plus allows for more online capabilities and perks
-free content, access to downloadable content
Marketing a product without the target audience in mind will not lead to successful sales. Audiences=buyers, current users, deciders, influences, individuals, groups, particular publics, or general public.
Category need (already established, or new-to-the-world?); brand awareness (how recognizable is the brand?); brand attitude (is the brand well perceived?); brand purchase intention (why would people buy this product? How likely?)
Three problems: What to say, how to say it, and who should say it; Message Strategy (what to say) focused on appeals, themes, or ideas consumers will respond toreward; Creative Strategy (how to say it) focuses on informational appeals or transformational appeals: informational=product benefits and specifications while transformational=non-product related benefits such as popularity or perceived image based on purchase of product; Message source (who should say it) focused on who should deliver marketing messages because who delivers the message will appeal to certain groups (ex: do not want to market denture adhesive with teenagers or young celebrities)
In what ways will the marketing messages be delivered? Multiple channels and subchannels: personal communications channels=interaction(s) between people or groups of people to market (personal influence is important; key to establish trust and credibility); nonpersonal (mass) communications channels=directed at public: advertisements, commercials, promotions, events, etc. (can grab attention of masses and distribute communications on a wide scale); integration=mass media can influence personal attitudes and beliefs about a product
Budget: multiple methods (will be discussed in a following slide)
Eight communications types: advertising, sales promotion, public relations and publicity, events and experiences, direct and interactive marketing, word-of-mouth marketing, and personal selling; mix important to establish because different types will have varying effectiveness depending on target audience and the product itself; cost also a factor
7&8: not to be covered in rest of presentation; important to measure results to check for effectiveness of plan and areas to change; managing IMC process would be changing or altering plan while it is already ongoing in order to tweak imperfections or do damage control, if necessary
Target Audience: The PS4’s target audience and market largely depends on available games and who plays those games. PS4s cater to more serious gamers who are loyal to certain franchises as well as independent games, which are readily available for download through the PlayStation Network. Typically, PS4s are marketing more towards the teen-middle aged adult market due to its lack of child-oriented and family games. Though some exist for sale, PS4 games often contain content that is inappropriate for children, such as sexual themes and violence. However, the PS4 also has games compatible with its system that provide enriching stories and environments for players to explore. Due to this, the target market is wide because it has a lot to offer for individuals within the teen-middle aged adult range. Although video games have typically been marketed to white heterosexual males, women, people of color, and people with various sexualities enjoy games and have been playing them since the PS1 was introduced in 1995. Therefore, this expanded target market should be represented in marketing; cost is also a factor because the PS4 system is expensive (approx $400) and a typical game for the system is $60
Communications Objectives: these are determined by what need a PS4 meets for consumers and whether or not the need is large enough to make significant salesneed of a PS4 is entertainment based; objectives also based on popularity and recognition of brandSony is very popular and well-known, as is the PS4; the PS4’s popularity has spiked against the Xbox One, its main competition, due to aspects of the Xbox that Microsoft was going to roll out with the product that were undesirable and caused outrage among the gaming communitybrand purchase intention over xBox One, even from prior Xbox 360 avid supporters
Communications Design: Message=what to say target audience interested in what the console can provide to them as gamers, so they are interested in variety of games available, ease of use, controller feel, online capabilities, user interface, and the power and graphics of system/also concerned with gaming ethics (PS4 is vastly more popular than the Xbox One due to poor decisions made by Microsoft in terms of digital rights managementall of this has increased the value of Sony’s PS4; Creative strategy=how to say it informational appeals would be HD capabilities, framerate, system power, online usage capabilities, games available, ease of use, memory and RAM power, and cost/transformational appeals are belief in the credibility of the brand and product, what personal value a PS4 can provide (escapism, playing in virtual worlds, online play, playing with friends, providing a rewarding gaming experience) and ethical concerns, coming back to Microsoft’s initial policies regarding the Xbox One many gamers see PS4 and Sony as more ethical and respectful of gamers and consumers over those in charge of gaming at Microsoft; Message source=who delivers the message PS4 has not focused on celebrity endorsements, and has produced ads that show people that typically play games (young adult males) engaging in gameplay, tagline=greatness awaits, sales of PS4s directly related to games that will appear on the console, so a game’s marketing is tied to the success of the PS4, so just as cellular networks’ success can depend upon what phones will be compatible with the network, PS4 does not really have a spokesperson
Communications Channels: generally utilizes mass communications channels over personal communication channels due to target audienceinternet age individuals who are exposed to media constantly, so this market is reached online or on television; does not mean that personal appeals are not related since purchasing decisions are often based on system and game reviews by individual reviewers
Affordable method: sets communication budget based on what the company can potentially afford, which makes long-term planning very difficult
%ofS: sets budget based on projected sales percentages of the product; can be very effective if projected sales are accurate, but if notdisaster
CPM: budgeting based on what competitors are doing, which is not necessary a good idea because this is based on the fact that competitors know what they are doing and that similar prices will deter some levels of conflict between competitors
OAT: based on defining objectives, then tasks, and then estimating the costs of each task… sum=total communications budget; higher accuracy and control due to breaking down the processes
OAT=best method and is best to utilize for Sony and the PS4; reported $100 million communications budget for PS4 on launch in 2013 (less than PS3 comm. Budget in 2006); Sony spent $59 million on TV ad placements through end of May 2014 on major networks (FOX, ESPN, Comedy Central, Fox Sports I, and TNT), while Xbox One spent $34.7 million on similar networks
“Greatness Awaits” ad inserted into online videos and sharing sites
17,000 social actions (tweets, likes, shares) and 2.5 million views between March and July 2014
Sales
Ten million buyers worldwide as of July 2014 at $400 per console = $4 billion
Ubisoft PS4 games selling over competitors at 21% market share
Plan: continue to utilize established marketing budget and strategy with commercials and online ads to appeal to holiday market-2014
Communications Mix
Advertising: Large part of budget and largest part of mix (over 50%)
Television ads and online ads, plus marketing via games available on the PS4 system (some games are PS4 exclusive)
The Last of Us Remastered
Sales promotions: not highly utilized, but coupon and promotion codes are available for games for the system itself, increasing customer value
PR and Publicity: Available Press releases available on playstation website; not highly utilized as part of communication mix
Events/Experiences:
The Electronic Entertainment Expo is an annual video game conference where video game console producers and game publishers showcase their future products and featuresSony/PS4 is always present and talks about new and upcoming content; VERY popular and highly responsible for what gamers decide to purchase in the future
My Road to Greatness Tour: tour that ran in Summer 2014 where PS4 fans appealed to Sony to ask for PS4 parties in their hometowns across the United States 13 tour stops chosen
Great for marketing the product and increasing popularity
Direct/interactive: Professional gaming review sites (such as IGN) provide information about gaming consoles and video games to provide (hopefully) objective information about the systems and their games
Reviewers have a lot of clout and influence over consumers
Word-of-mouth: many online reviewers create reviews for entertainment value or to make a living through ad placement paymentsalso have a lot of clout and can influence consumer behavior
Personal selling: not utilized
Brand equity and customer loyalty
Sony’s brand equity increase at E3 in 2013, with 81% of IGN viewers agreeing that Sony’s press conference beat Microsoft’s due to Microsoft’s poorly received policies in regard to the Xbox One
Sales data since PS4 launch has been better than the sales of Xbox One consoles; PS4 games also sell more copies than Xbox One games
PS4 and Sony will continue to expand brand equity and increase customer loyalty through providing gamers with great experiences and showing respect to the gaming community
SONY PS4 Print Ad
This print ad I created mirrors Sony PS4’s already simple marketing and logo designs mixed with the mystery and mystique the brand perpetuates through its designs
-PS systems are known for using the colors blue and black for their interfaces, print ads, and logos
-Planet earth in space symbolizes the idea that purchasing a PS4 can give players control over virtual worlds
-the sun coming over the horizon line symbolizes the infinite possibilities of the future, plus projects an air of majesty over Earth
-space symbolizes the unknown, yet also the infinite, showing that PS4 is capable of providing unlimited possibilities to consumers
-Greatness Awaits is an already used PS4 tagline, which (in tandem with the background) projects an air of control over the planet
-the inclusion of Sony’s tagline along with its logo (make.believe) is attributed to the PS4’s main goal of taking people on virtual adventures through gaming
-the PS logo and PS4 logo are included to showcase what the ad is for. This ad is created more for people already familiar with Playstations, though many people that have never owned or played one before are still aware of the logo
Perfect Day
Emphasis on playing with friends in multiple settings and worlds
PlayStation 4 is a social gaming platform
Appeals to existing consumers as well as new ones
Possible to appeal to parents of older children (due to violence) because of emphasis on playing with friendsestablishing relationships
4 The Players Since 1995
Shows friends who have been playing with PlayStations since the PS1
Shows changing times, fads, environment
Constant=same friends and same brand of gaming console
Depicts brand equity and customer loyalty of Sony and PlayStation users
Appeals to current and potential customers
Nostalgic, and shows friends bonding over almost twenty years
PlayStation can establish lifelong relationships
Fitting in with ICM Plan
Showcases Sony and PS4’s marketing budget which appeals to the target audiences effectively. Also fits with Print Ad because PlayStations have always projected an air of mysticism and emotional appeal tugging at the consumer’s pathos
The more subdued colors that are displayed in PS4 ads make them identifiable to consumers, just as Xbox ads are identifiable based upon their avid use of the color green and a larger focus on brighter colors to gain the attention of consumers
PlayStation attempts to tug at the heartstrings of their audiences and project a sense of awe, while Xbox ads tend to be more lively, fun, and project the feeling of (to use an avid internet term) badassery
