2. Early
Computers
• Back in the 1950s to early 1970s, computer
meant mainframes and mini computers.
• Were used only at big companies, military and
universities by professionals.
• That scenario started to change in the late
1970s with the invention of microcomputer that
was much smaller in size.
• Effort to expand storage facilities and nurturing
software industry for the supply of word
processing, spreadsheet software, computer
games etc. eventually benefitted the
microcomputer industry.
Figure:Whirlwind I-military computer
3. Inventions that Unleashed the potential
of Using Microcomputer
• Computer game ‘Pong’ based on Ping-Pong by
Atari in 1972 which gained huge commercial
success.
• Software for playing Pac-Man,Centipede, Galaxian
and other popular video games on microcomputer.
4. Continued..
• Development of office applications like word processor,
calculator and spreadsheet capabilities in microcomputer.
Such as:
-Word processing software likeWordStar released by Micropro
International in 1978.
-Spreadsheet computer program likeVisiCalc (for "visible
calculator") by Dan Bricklin and Bob Frankston in 1979.
5. Microcomputer
Industry in the
1970s
As an embryonic industry, it had following
characteristics:
• Low sales resulting in slow growth
• High cost per customer
• Few competitors
• Rivalry based not so much on price as on
educating customers, opening up
distribution channels and perfecting the
design of the product.
Figure: Altair 8800-the first commercially successful
personal computer, sold in kit form
7. Advertising
& Sales
Promotion
• Informative advertising is appropriate which involves
making the product familiar to the consumer,
explaining how it works and describing available
services and support.
• Personal computer was introduced as a machine that
can enhance personal productivity.
• The value proposition can be like the following:
‘Productivity on your desk.
Whenever you need it!’
8. Having a
computer at
home can be
marketed as a
way of efficient
life focusing
utilities like:
Organizing and
managing home
finances
Privilege of
taking work
home from office
Storing
information
Painting using
color graphics
Entertainment
through games
Helping children
do school work
9. • Hiring celebrity endorsers for
credibility to deliver the message
through communication channels
available at that era like
-print media (newspaper, magazine)
-broadcast media (radio, television)
-display media (billboards, signs, posters)
Figure: Radio Shack appointed popular science-fiction author
IsaacAsimov to promote its line of microcomputers.
10. Distribution
& Price
• Using selective distributor is profitable in
embryonic stage of industry. For example, the
Tandy Corporation sold itsTRS-80
microcomputer only through Radio Shack
stores and became successful.
• Cost-plus pricing approach (adding a standard
markup to the cost of the product) is effective.
• After the demand of the product increases,
methods like product bundle pricing can be
used to attract business customers.
Figure: Radio ShackTRS-80 Computers
11. Reference
• Kotler P, Keller KL,2009,Marketing Management,13th ed., NZ: Prentice Hall.
• Sims D, 2015, ‘How Apple and IBM Marketed the First Personal Computers’
[online]. Available at:
http://www.theatlantic.com/entertainment/archive/2015/06/clear-the-kitchen-
table-how-apple-and-ibm-marketed-the-first-personal-computers/396047/
[Accessed 27 Dec, 2016]
• Timeline of Computer History.[online]. Available at:
http://www.computerhistory.org/timeline/1970/ [Accessed 27 Dec, 2016]