The marketing plan summarizes Microsoft's strategy for the Surface Pro 3 tablet. Key points include:
- The goal is to drive customers to purchase Microsoft software by filling a niche in the tablet/laptop market.
- The Surface Pro 3 is positioned as a device that can replace both a tablet and laptop at a lower combined cost. It is targeted at middle to upper class note-takers and content creators.
- Microsoft faces competition primarily from Apple's iPad/Macbook lineup. However, the Surface Pro 3 differentiates itself by being a true laptop replacement with a full-sized OS, ports and screen in a tablet form factor.
California Closets: Prioritizing a Personalized Customer ExperienceMarcus Hall
The folllowing is a recap of my presentation at Lessonly’s Yellowship Conference, diving into the methods behind prioritizing a personalized customer experience, and how delivering that same encouragement and support to your internal teams only enhances the services your customers receive.
The Walt Disney: The Entertainment KingAnuj Poddar
This case is comprised of the company's history, from 1923 to 2001. The Walt years are described, as is the company's decline after his death and its resurgence under Eisner, some topics are devoted to Eisner's strategic challenges in 2001: managing synergy, managing the brand, and managing creativity. The case was written by Michael G. Rukstad and David Collis
The case was uploaded with a Walt Disney font, but Slideshare was not able to detect that
California Closets: Prioritizing a Personalized Customer ExperienceMarcus Hall
The folllowing is a recap of my presentation at Lessonly’s Yellowship Conference, diving into the methods behind prioritizing a personalized customer experience, and how delivering that same encouragement and support to your internal teams only enhances the services your customers receive.
The Walt Disney: The Entertainment KingAnuj Poddar
This case is comprised of the company's history, from 1923 to 2001. The Walt years are described, as is the company's decline after his death and its resurgence under Eisner, some topics are devoted to Eisner's strategic challenges in 2001: managing synergy, managing the brand, and managing creativity. The case was written by Michael G. Rukstad and David Collis
The case was uploaded with a Walt Disney font, but Slideshare was not able to detect that
The Chicken Coop Case Analysis Problem Statement Daryl Buckmeister, CEO of The Chicken Coop, must decide whether to invest in market research or any other.
Allentown Materials Corporation was established in late 1800’s in Allentown, Pennsylvania
Leading manufacturer of speciality glass
Eight Line Divisions
The Electronic Products Division manufactured high quality electronic components
It had unique technological capabilities.
Shifted to Commercial Market in late 1980s.
It is known as a leading manufacturer.
It has an annual growth rate of 10%.
Cola Wars - Coke Vs Pepsi Harvard Business School Case StudyMohan Kanni
A brief presentation on case study Cola Wars where we try to analyse the past history and predict the future of their business and growth opportunities from a Marketing Management Perspective.
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
emerging nokia - should they focus on developed or emerging marketsSaurabh Arora
Should Nokia’s growth strategy be to focus on the developed markets, emerging markets or both?
Case Analysis
Handset manufacturer worldwide market share of 38% in 2009
Market leader in emerging markets like India(60%) and China(40%)
Financial performance pre-2008 was exceptional
Known for innovation
Offers products at all price points
Post-2008 started losing ground in developed markets
European market revenue declined by 15% in 2009
Exited the Japanese market after 20 years of operations
Nokia was fifth most valuable brand globally in 2000
Analysis of Emerging Market
Employed the cost leadership strategy: Purchasing power low in emerging markets hence Nokia provided cost effective products successfully.
First time purchasers: Only 20% of the emerging market were not first time purchasers
Services as the key selling point: People of emerging markets wanted value added services bundled with the phone
Analysis of Developed markets
Consumers not very price sensitive
Delivering innovative products more important
57% of the market goes for a second phone, most of the time for an upgrade
Emergence of i-phone, considered as replacement for normal handsets with users looking for upgradation
Growing competition from companies like Samsung, LG, Motorola and Sony Ericson was also making things worse for Nokia.
New Operating System – e.g. – Emergence of OSs like Google’s Android and Microsoft’s Windows mobile further bothered Nokia.
Inability to understand demand – Nokia failed to understand growing demand for touch phones
Why focus on Emerging Markets?
As Nokia has already gained the following benefits by being the first mover, it should strive hard to maintain it’s market share in developing economies. Advantages it has –
Earlier entry, early start of the learning curve. Its crucial and experience is tough to imitate.
Nokia can develop enhanced reputation by being pioneer and using its already established brand image
Absolute cost advantage can be gained by early commitments to supplies of materials and distribution channels….
Recommendations- Emerging Market
Nokia should concentrate on Improved as well as Basic phones as the market is still evolving
Tie up with Telecom players and bring dual sim phones to increase the switching cost
It should follow innovations in developed countries and adapt them to emerging markets in order to stand against competition.
One general strategy should be to outsource the services part as it is not Nokia’s competency and customers are giving more regard to services (Exhibit 6)
Instead of charging customers for Life tools, revenues should be earned from advertisers.
The Chicken Coop Case Analysis Problem Statement Daryl Buckmeister, CEO of The Chicken Coop, must decide whether to invest in market research or any other.
Allentown Materials Corporation was established in late 1800’s in Allentown, Pennsylvania
Leading manufacturer of speciality glass
Eight Line Divisions
The Electronic Products Division manufactured high quality electronic components
It had unique technological capabilities.
Shifted to Commercial Market in late 1980s.
It is known as a leading manufacturer.
It has an annual growth rate of 10%.
Cola Wars - Coke Vs Pepsi Harvard Business School Case StudyMohan Kanni
A brief presentation on case study Cola Wars where we try to analyse the past history and predict the future of their business and growth opportunities from a Marketing Management Perspective.
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
emerging nokia - should they focus on developed or emerging marketsSaurabh Arora
Should Nokia’s growth strategy be to focus on the developed markets, emerging markets or both?
Case Analysis
Handset manufacturer worldwide market share of 38% in 2009
Market leader in emerging markets like India(60%) and China(40%)
Financial performance pre-2008 was exceptional
Known for innovation
Offers products at all price points
Post-2008 started losing ground in developed markets
European market revenue declined by 15% in 2009
Exited the Japanese market after 20 years of operations
Nokia was fifth most valuable brand globally in 2000
Analysis of Emerging Market
Employed the cost leadership strategy: Purchasing power low in emerging markets hence Nokia provided cost effective products successfully.
First time purchasers: Only 20% of the emerging market were not first time purchasers
Services as the key selling point: People of emerging markets wanted value added services bundled with the phone
Analysis of Developed markets
Consumers not very price sensitive
Delivering innovative products more important
57% of the market goes for a second phone, most of the time for an upgrade
Emergence of i-phone, considered as replacement for normal handsets with users looking for upgradation
Growing competition from companies like Samsung, LG, Motorola and Sony Ericson was also making things worse for Nokia.
New Operating System – e.g. – Emergence of OSs like Google’s Android and Microsoft’s Windows mobile further bothered Nokia.
Inability to understand demand – Nokia failed to understand growing demand for touch phones
Why focus on Emerging Markets?
As Nokia has already gained the following benefits by being the first mover, it should strive hard to maintain it’s market share in developing economies. Advantages it has –
Earlier entry, early start of the learning curve. Its crucial and experience is tough to imitate.
Nokia can develop enhanced reputation by being pioneer and using its already established brand image
Absolute cost advantage can be gained by early commitments to supplies of materials and distribution channels….
Recommendations- Emerging Market
Nokia should concentrate on Improved as well as Basic phones as the market is still evolving
Tie up with Telecom players and bring dual sim phones to increase the switching cost
It should follow innovations in developed countries and adapt them to emerging markets in order to stand against competition.
One general strategy should be to outsource the services part as it is not Nokia’s competency and customers are giving more regard to services (Exhibit 6)
Instead of charging customers for Life tools, revenues should be earned from advertisers.
Everyone is on the Marketing Team (Event Marketing for Film Festivals)Christopher Holland
In the language of film festivals: “If the house is packed, programming did a great job. If the seats are empty, marketing must have screwed up.”
Specialization and the compartmentalization of duties in any company — film festivals being no exception — disguise the fact that every decision you make about your event affects how the members of your audience see you. That means that every decision is a marketing decision, and every person who works for you must be aware of the marketing impact their actions have. Everyone, whether they want to admit it or not, is on the marketing team.
Want a sneak peek? Here are a few examples of tidbits we’ve learned:
* Programming is marketing. You must show movies that YOUR audience wants to see, and accept the fact that “good programming” may defy your own tastes and the tastes of others.
* Customer service is marketing. When it comes to new customers, trusted word of mouth has the power to override your other marketing efforts, so treat everyone well.
* Other areas traditionally not thought of as marketing that really are: budgeting, education, sponsorship…
You will also learn key concepts and ways to bring your entire staff onto the marketing bandwagon (and keep them happy once they are on board)!
22 Influencer Marketing Ideas from Influential MarketersPlacester
We've known all along how important influencer marketing is in shaping the opinions and behaviors of our ideal customer, the challenge for most has been how to cultivate influencers to grow your network. To find out more about this powerful form of marketing take a look at what we created with content marketing superstar Barry Feldman (influencer) and 22 of the most influential marketers around, Ann Handley, Jay Baer, Marcus Sheridan, Jeff Bullas, Joe Pulizzi, Lee Odden, Joe Chernov, Robert Rose, Mark Schaefer, Doug Kessler, Ardath Albee and More. From the team at Placester - Seth Price
20 amazing examples of content marketing coming straight from Joe Pulizzi's book, Epic Content Marketing. Examples include John Deere, Google, Adobe, LEGO, Coca-Cola, Red Bull, Copyblogger, American Express and many more.
In the Business Perspectives for Emerging Markets 2012-2017 Report from GIA, 431 large and mid-sized companies reveal their true goals and intentions. This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP
1. 70% say they want to gain a foothold for long term success
2. 51% say they were keen to gain global market share
3. 4 out of 10 have followed their customers to Emerging Markets
4. A third are looking for growth outside established markets with lackluster growth and profits
5. 1 out of 4 are keen to diversify their risks, as well as tap into short to medium term profits and growth
6. Only 17% said it was to lower supply costs
Many still favor BRIC countries as their top focus between 2012 and 2017, with similar emphasis on individual markets across 10 industries.
However, 91% admit to wanting to have done things differently in their Emerging Market strategies. The main regrets are not adapting more to local conditions, not entering sooner and not acquiring better market intelligence.
Over half say that information on Emerging Markets is not readily available in their organizations, with three out of four doubting the accuracy and completeness of the information that they do have.
Download the Business Perspectives for Emerging Markets 2012-2017 Report (Global Results) from GIA, to find out how companies say they will tackle Emerging Markets and what they see as the success factors and threats for their individual industries. The wide ranging Emerging Markets survey covered questions such as:
- How do you define Emerging Markets in your company?
- Which are the top Emerging Markets for your industry over the next five years?
- What key factors will determine whether foreign companies succeed in Emerging Markets?
- What are the biggest threats to succeeding in Emerging Markets?
- What are your company’s main reasons for investing in Emerging Markets?
- What share of your company’s global revenue do you expect to come from Emerging Markets?
- Which one aspect of your Emerging Markets strategy would you go back and change if you could?
Industries covered include: Manufacturing & Industrial; Telecommunication, Technology & Media; Professional & Business Services; Financial Services; Consumer & Retail; Pharmaceuticals & Healthcare; Energy, Resources & Environment; Automotive; Chemicals; Logistics & Transportation.
Bài viết đã xoá các thông tin liên quan tới trường và thông tin người làm, nên có thể một số trang sẽ bị định dạng lỗi
Microsoft assignment written by dichvuthuctap.com
It is related to apple Inc. Vision & Mission Statement:
There are no official or written statements of vision or mission on apple website but different statements of CEO or press release may be the vision or mission of Apple. There is no specific area for vision and mission as there are no clarifications about the vision and mission.
VISION STATEMENT : (Future positon ideas)
We strive to provide users of Apple products the best experiences possible though innovative product designs and software
MISSION STATEMENT:
Not all market shares are equal, and Apple has never been about the most; we are about being the best.
We believe that we are on the face of the earth to make great products and that’s not changing.
We are constantly focusing on innovating.
We believe in the simple not the complex. (only selected initial 3 statement by Tim)SWOT ANALYSIS:
STRENGTHS:
Safety of personal data.
Pioneer in the personal desktop computer.
Max market capitalization.
High performance production line with products like iphone, ipad, ipd, mac computer.
WEAKNESS:
15% global market show.
Significantly expensive.
Not compatible with many software and windows machine
Late production of Larger screen in smart phone.
OPPERTUNITIES:
Apple pays finger prints
In-house credit system
Product diversification
Formation of strategic partnerships
THREATS
Patent infringement
Reverse packaging
Quality problems with negative effects on sales and Apple brand image
Intense competition like Samsung, Lenovo, Chinese companies in smart phone. Dell, Sony and Toshiba in PCs.
Rising popularity of Google Android may affect its market share.
Marketing Plan: Cube and CubeX 3D PrintersMartina Ascoli
This presentation shows an idea of a marketing plan for the consumer products of 3D System co. developed for Strategic Marketing and Marketing Plan course. A first evaluation of the product, the market and the company leads to a SWOT Analysis from which the marketing strategy is derived. The marketing plan is structured in three main objectives that can be achieved by specific actions on the variables of product, promotion and placement.
After watching a movie about a young woman who quit a successful.docxgalerussel59292
After watching a movie about a young woman who quit a successful corporate career to start her own baby food company, Julia Day decided that she wanted to do the same. In the movie, the baby food company was very successful. Julia knew, however, that it is much easier to make a movie about
a successful woman starting her own company than to actually do it. The product had to be of the highest quality, and Julia had to get the best people involved to launch the new company. Julia resigned from her job and launched her new company—Starting Right. Julia decided to target the upper end of the baby food market by producing baby food that contained no preservatives but had a great taste. Although the price would be slightly higher than for existing baby food, Julia believed that parents would be
willing to pay more for a high-quality baby food. Instead of putting baby food in jars, which would require preservatives to stabilize the food, Julia decided to try a new approach. The baby food would be frozen. This would allow for natural ingredients, no preservatives, and outstanding nutrition. Getting good people to work for the new company was also important. Julia decided to find people with experience in finance, marketing, and production to get involved with Starting Right. With her enthusiasm and charisma, Julia was able to find such a group. Their first step was to develop prototypes of the new frozen baby food and to perform a small pilot test of the new product. The pilot test received rave reviews. The final key to getting the young company off to a good start was to raise funds. Three options were considered: corporate bonds, preferred stock, and common stock. Julia decided that each investment should be in blocks of $30,000. Furthermore, each investor should have an annual income of at least
$40,000 and a net worth of $100,000 to be eligible to invest in Starting Right. Corporate bonds would return 13% per year for the next five years. Julia furthermore guaranteed that investors in the corporate bonds would get at least $20,000 back at the end of five years. Investors in preferred stock should see their initial investment increase by a factor of 4 with a good market or see the investment worth only half of the initial investment with an unfavorable market. The common stock had the greatest potential. The initial investment was expected to increase by a factor of 8 with a good market, but investors would lose everything if the market was unfavorable. During the next five years, it was expected that inflation would increase by a factor of 4.5% each year.
#2) Ray Cahn, who is currently a commodities broker, is also considering an investment, although he believes that there is only an 11% chance of success. What do you recommend?
#3) Lila Battle has decided to invest in Starting Right. While she believes that Julia has a good chance of being successful, Lila is a risk avoider and very conservative. What is your advice to Lila?
#6) Julia D.
Chapter 6 Organizational Strategy Resources – the as.docxrobertad6
Chapter 6 Organizational Strategy
Resources – the assets, capabilities, processes, employee time, information, and knowledge that an organization controls.
Competitive advantage – providing greater value for customers than competitors can.
Sustainable competitive advantage – a competitive advantage that other companies have tried unsuccessfully to duplicate and have stopped trying to duplicate for the moment.
Hello Class, Today we discuss Chapter 6 Organizational Strategy.
This chapter is also about planning function, same as chapter 5 Planning and decision making.
Ch 5 introduces basic terms about planning while Ch 6 is about strategic management.
Five topics in chapter 6 will be discussed: sustainable competitive advantage, strategy-making process, corporate-level strategies, industry-level strategies, and firm-level strategies.
Resources are critical to organizational strategy because organizations can use resources to improve its effectiveness and efficiency and create and sustain competitive advantage. Resources are the assets, capabilities, processes, employee time, information, and knowledge that an organization controls. We have discussed four types of organizational resources: human, financial, physical, and informational resources in Chapter 1.
Competitive advantage can be achieved if an organization can use its resources to provide greater value for customers than competitors can.
E.g. iPad’s competitive advantage came partly from its sleek, attractive design and partly from the reputation of Apple’s iPod and iPhone as innovative, easy-to-use products. iPad can provide greater value for customers than competitors’ products.
Sustainable competitive advantage is a competitive advantage that other companies have tried unsuccessfully to duplicate and have stopped trying to duplicate for the moment. “Sustainable” does not only mean long lasting competitive advantage, and more importantly it also means that competitors have tried to duplicate the advantage but failed, so that competitors stop trying to duplicate for the moment.
E.g. Microsoft Surface is a competitor for iPad. The Surface has touch screen, a combination cover/detachable keyboard, and two versions of the Windows operating system. However, the Surface has just 47,000 apps compared to over 300,000 apps for the iPad, and had higher price ($999 for a 256 GB Surface Pro with an Intel i7chip versus $929 for a 64 GB iPad with an A7 chip and a high-definition screen). Also, the Window 8 touch interface on the Surface is more difficult to learn and use than the iPad’s.
Therefore, the Surface could not successfully duplicate iPad. Apple still dominates tablet sales with 33.8% of the market since Apple has developed its sustainable competitive advantage.
Achieving Sustainable Competitive Advantage
Valuable resource – a resource that allows companies to improve their efficiency and effectiveness.Rare resource – a resource that is not controlled or posse.
Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
The study shows the development on the Apple Inc. mission& vision and the strategic objectives over time.
VARS - the way we make money as independent entrepreneurs...Gordon Kraft
In the days of the minicomputer and PC's VARS Value Added Resellers provided turnkey solutions to Business. They still do to Large End Users LEU's, but with the economy creating more and more Entrepreneurs, one man bands a new yet solution is required. Pooling of Interests is required... Collaboration is required. This can be done by Google Hangouts. Or of course one can Offshore their requirements to India.
Silicon Valley can create Pooling Interest in and city, even Lake Tahoe...
WAL_SOCW6121_01_A_EN-CC.mp4Make sure to read the instruction.docxjessiehampson
WAL_SOCW6121_01_A_EN-CC.mp4
Make sure to read the instruction carefully
ASSIGNMENT 3
In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2.
Research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write a six to eight (6-8) page paper in which you:
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the competitive environment to determine the corporation's most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
· Identify various levels and types of strategy in a firm.
· Use technology and information resources to research issues in business administration.
· Write clearly and concisely about business administration using proper writing mechanics.
ASSIGNMENT 1
ASSIGNMENT 2
(http://www.sec.gov/edgar.shtml
Strayer Writing Standards (SWS).
Running Head: THE INTERNAL AND EXTERNAL ENVIRONMENTY OF APPLE
1
THE INTERNAL AND EXTERNAL ENVIRONMENTY OF APPLE
7
The External and Internal Environment of Apple
Clarice Torrence
BUS 499
Professor: Joseph Keller
August 12, 2019
Give your opinion on the corporation's greatest strengths and most significant weaknesses. Choose the strategy or tactic the corporation should select to take maximum advantage of its strengths, and the strategy or tactic the corporation should select to fix its most significant weakness. Justify your choices.
Apple being one of the most valued te ...
Similar to Microsoft Surface Pro 3 Marketing Plan (20)
WAL_SOCW6121_01_A_EN-CC.mp4Make sure to read the instruction.docx
Microsoft Surface Pro 3 Marketing Plan
1. Marketing Plan
Microsoft Surface Pro 3 (SP3)
Anthony Seo
MRKT 310 Marketing Principles
Professor Eusebio Inocencio
May 10, 2015
1
2. Executive Summary
The goal of this marketing plan is to understand the marketplace and
customer needs and wants. From this we can design a marketing
strategy driven by the customer that will allow the company to provide
superior value to the customer. By doing so, the company can build
relationships where the company can capture value in return from the
customer. (Principles of Marketing, 2014)
Key point: Microsoft makes devices to glue people into their ecosystem
not to profit directly from hardware sales. Their goal is to drive
customers to purchase their software, where they earn the highest
margins. Their goal is to fill a niche that will bring enough customers into
their ecosystem to contribute to the growth in sales for their software.
(Charles Arthur, 2014).
2[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
[2] Aurthur, Charles. Digital Wars. New York, 2014
3. Table of contents
3
A. Current Marketing Situation
1. Market description
a. Segmentation
b. Marketing targeting strategy
c. Value proposition
d. Factors influencing behavior
e. Buyer decision process
2. Product review
a. Levels of product/service
b. Type of product/service
c. Product/service life cycle
d. Benefits/features analysis
e. Differentiation
f. Branding strategy
g. Competitive review
3. Competitive analysis
a. Market share
b. Competitive positions and roles
c. Strategic sweet spot
d. Positioning
4. Competitive review
a. Supply chain members and roles
b. Value-delivery network analysis
c. Type of distribution strategy
B. SWOT
1. Microenvironment
2. Macroenvironment
5. Market description
• In creating a marketing plan, first there needs to be an
understanding of which customers to serve (segmentation and
targeting) and what is the products value proposition
(differentiation and positioning).
• This will allow the company to create value for the targeted
customer.
5
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
7. Marketing Strategy - Concentrated
As a computer software company its
largest competitor is Apple. Apple has
been able to undercut Microsoft for
years by creating its own hardware
along with its own software.
Microsoft needed to start producing
its own hardware to bring down its
cost and increase its margins making it
competitive with Apple.
The Microsoft Surface Pro 3 is the
answer to that decision.
7
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
8. Value proposition - Why should I buy your brand?
Consumers juggled a notepad for jotting and sketching,
a tablet for general consumption and entertainment, a
netbook for light task such as writing emails, and a fully
powered PC for heavy tasks such as photo or video
editing.
The SP3 can do more than any of these devices and cost
less than trying to purchase all of these devices.
This is a “the more for less price” positioning.
Tech Republic’s article validates this.
8[3] Bradley, Tony. “3 reasons to invest in a Surface Pro 3 instead of an iPad Air 2.” Tech Republic. October 2, 2014.
http://www.techrepublic.com/article/3-reasons-to-invest-in-a-surface-pro-3-instead-of-an-ipad-air-2/
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
9. Factors influencing consumer behavior
of the primary target market
Cultural – Multiple language interfaces making it a global product.
Social – Windows has an 85% share of the operating system market. Majority of
the world has a shared familiarity of the platform on which the SP3 operates and
is comfortable with it.
Personal – Attracts middle to upper class users, who are note-takers, content
producers, and frequently switch between devices.
Psychological – There is a strong psychological affect of being able to do all of
your tasks from a single portable device.
9
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
10. Buyer decision process
of the primary target market
Need recognition – Typical large tablets have a 10 inch screen and the smallest fully
featured laptops are 13 inches. Tablets have a weak mobile core processors and laptops are
heavy and lack convenient touchscreens. The SP3 at 12 inches is a combination of both
device types.
Information search – The SP3 is tablet, but has a detachable keyboard and full operating
system which makes it also a laptop. It is cheaper than buying two separate devices but is
expensive when compared to any one laptop or tablet by itself.
Evaluation of alternatives – A 128GB iPad Air 2 costs $700. A 256GB MacBook Air cost
$1300. That’s a combined cost of $2000. The 256GB SP3 with a equivalent specification
costs $1300. Apple has more apps, Microsoft has more supported programs
Purchase decision – It is the most full featured device that serves a multitude of purposes
and replaces two devices. It is an overall great buy, packed with value.
Post-purchase behavior – It comes with the number one operating system in the world,
ensuring tons of program compatibility. It has a one year warranty and is connected to one
of the largest customer support teams in the world.
10
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
13. Core customer value - What is the buyer
really buying?
Convenience and simplification by only owning one
device versus several devices.
Cost savings of only buying one device versus
multiple devices.
The cool new niche technology in a brand new
market.
The Tesla effect. The Tesla S has the power of a
Ferrari under its hood. The SP3 has the power of a
full-sized PC.
13
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
14. Actual Product
14
Features: It has the full feature list of a table and a laptop
crammed into a tablet form factor.
image source: microsoft.com
15. Actual Product
15
Design: The thinnest full size PC. Features a unique kickstand, Detachable type cover,
and electronic pen.
image source: microsoft.com
16. Actual Product
Quality Level: It has the most powerful processor of any tablet, the
largest touch and pen interface screen, and it’s the thinnest PC.
Brand Name: Microsoft is the most recognizable brand of operating
systems with a global market share of 85%.
Packaging: It has been modernized its packaging to match its new
design language.
16
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
images source: techrepublic
17. Augmented Product: additional consumer services
and benefits
• Delivery and credit: Library of supported programs and a growing Apps
Store. Windows ecosystems. Windows OS, and Office products.
• Product support: Experienced and refined support team
• After-sale service: Free support and training is offered to all owners at the
Microsoft Store.
17
[4] http://www.microsoftstore.com/store/msusa/en_US/pdp/Surface-Pro-3/productID.300190600?WT.mc_id=sp3pdp-appstory
18. Type of product: Consumer vs Industrial
• Consumer Products > Shopping Product
• Customer buying behavior: Buying a tablet or PC is an
infrequent purchase occurring every few years. There are
many competitors and consumers compare them by price,
quality, and features.
• Price: The price is high and compared to its competitors its
one of the highest.
• Distribution: It is available for sale in its own Microsoft
stores and some electronic stores that deal in higher end
electronics such as name brand computers.
• Promotion: Mass promotion is done by Microsoft
• For these reasons, the SP3 falls under the category of the
Shopping Product under Consumer Product.
18
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
19. Product life cycle
19
The product is past the Product development stage, and Introduction stage.
It is currently in the Growth stage. It is quickly seeing market acceptance and
increasing profits. Other competitors are rumored to be producing
competitive devices.
At less than 10% market share for tablets, the SP3 is far from the Maturity or
Decline stage.
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
20. Benefits/features analysis
20
Portable Powerful Capable
CPU: 1.9GHz Intel Core i5-4300U
Graphics: Intel HD Graphics 4400
RAM: 8GB LPDDR3
Screen: 12-inch touch
Storage: 256GB SSD
USB 3.0, Mini DisplayPort
microSDXC card reader
802.11ac Wi-Fi, Bluetooth 4.0
Two 5MP webcams (1080p)Weight: 1.76 pounds
Size: 7.93 x 11.5 x 0.36 inches
headphone/mic jack
FEATURES
BENEFITS
21. Differentiation
• There was no product that existed in the space between the PC
and the tablet until the SP3. It’s a tablet with a full-size operating
system, it full sized ports, expandable memory, a pen interface
and a larger screen size.
21
images source: apple.com, microsoft.com
PORTABLE
CHEAP
TOUCH
SIMPLE
POWERFUL
CAPABLE
KEYBOARD
PEN
PORTABLE
POWERFUL
VALUE PRICED
TOUCH
PEN ENABLED
STYLISH/COOL FACTOR
22. Branding strategy
• Brand Positioning – It concentration on the major differences in this product
such as the kickstand, keyboard cover, pen, and operating system.
• Brand Name Selection – They created the surface line which includes the
tablet but also all there other touchscreen based technologies such as the
table and wall mounted displays.
• Brand Sponsorship – This is private brand.
• Brand Development – They plan to extend this name brand to larger and
smaller tablets and also other touch based technologies.
22
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
23. Competitive review
"Surface Pro devices and our PC accessories face competition from
computer, tablet, and other hardware manufacturers, many of which
are also current or potential partners and customers.”
[8] Microsoft SEC Annual Report 2013
23
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
25. Assess the competitor
Apple = rigid design language, slow release, high quality, strong brand
Samsung = Fast to react to consumer desires, no design integrity, low
quality, confused branding
25
March 2, 2011
IPAD 2
October 22, 2013
IPAD AIR
2013
NOTE 82012
NOTE 10
2014
NOTE 10.1
2014
NOTE PRO 12.2
The iPad mainly remained the same
The Note made major changes with
each iteration adding the latest
technologies
26. Select competitors to attack
Apple is the easiest to go after and it the past has proven to be the
winning strategy. This was the case with the original windows
operating system which elevated the company in the first place.
26
Apple does not allow for their
operating system to be used on non-
Apple hardware which created an
opportunity for Microsoft to
distribute their hardware agnostic
operating system to any hardware
developer.
In present day Apple will not
distribute its mobile operating system
allowing for Microsoft and now also
Google to distribute their mobile
operating systems.
[5] http://www.netmarketshare.com
27. Market share
• According International Data Corporation (IDC), The SP3 has less than
10% of the tablet market versus the market leader (Apple iPad) with
over 50%.
27[6] Tushneem. “Microsoft needs to up the ante with the Surface RT to gain market share.” Mobinett. February 4, 2013.
http://www.mobinett.com/2013/02/04/microsoft-needs-to-up-the-ante-with-surface-rt
28. Competitive positions and roles
• The Surface Pro 3, it is fairly new to the tablet market and technically
it is in a new category of its own. Due to the fact that is a non-
traditional product with a very little market share in the tablet or the
PC market it is is best categorized as a Market Nicher.
• Unfortunately Microsoft is using Market challenger strategies, such
as attack ads against Apple, which have since backfired
28[7] Bott, Ed. “How Microsoft’s Surface Pro 3 marketing push backfired.” ZD Net. June 19, 2014.
http://www.zdnet.com/article/how-microsofts-surface-pro-3-marketing-push-backfired/
29. Strategic sweet spot
• Owning a SP3 equates to owning a laptop, a tablet, and a digital
notepad. This means buying and maintaining only one device which
decrease the cost to consumer.
• These are advantages geared toward Students, Families,
Professionals and Creators.
29
30. Positioning
• Microsoft is positioning itself between categories thus able to take
market share from competitors in the tablet market and PC market
thus doubling this opportunity to attract customers.
30
32. Current supply chain members and roles
Microsoft has internalized many components of the manufacturing
process by producing their own hardware. Microsoft still has to
purchase several subcomponents for its product such as processors,
memory storage and displays.
32
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
images source: microsoft.com
33. Value-delivery network analysis
• Microsoft has internalized much of the manufacturing, distribution and
sales.
• By manufacturing the hardware, developing the software and selling
directly to the consumer, Microsoft is further decreasing the cost of
delivering its products at competitive price.
• This decrease in dependency decreases the risk that an external
component of the network will negatively affect the companies ability to
deliver the product it wants and when it wants it.
33
34. Current type of distribution strategy
Microsoft has moved to a
strategy in which they
create its own
stores where they can
educate its potential
customers and deliver its
product directly to the
consumer.
However Microsoft is still
establishing its store and
thus still heavily
dependent on third party
deliverance of its offerings
which adds to cost.
34
MICROSOFT’S
OLD STRATEGY
MICROSOFT’S
NEW STRATEGY
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
36. Microenvironment - INTERNAL
36
STRENGTHS
Company – Microsoft’s overall goal is to get people to use its operating system and services. Selling the SP3 is also for
the purpose of this goal and not to dominate the tablet market. They design and manufacture the hardware which
ensures their software developer can customize programs to the specification of the device thus producing the best
user experience.
Suppliers – Microsoft is shedding some of its dependence of device makers and developing its own through
relationship with the parts suppliers. This gives them better control over supply and supply cost.
Marketing intermediaries – Buy creating their own physical stores and selling online, Microsoft is less dependent on
Marketing intermediaries to help the company promote, sell, and distribute its products to final buyers.
Competitors – They have a unique offering that is competitive with the competition.
Publics –
Financial publics: Microsoft is a large company with large cash reserves able to push development and sale
further than its competition.
Government publics: Microsoft is a huge enterprise partner with U.S. government at all levels.
Customers – The surface is an attempt to target to the consumer electronics market, where Microsoft does not have
a strong relationship. However most consumers are familiar with the brand and is likely experienced with the
companies product through work or its other devices. This means there is a less of a hurdle to the customer than a
company has no previous relationship with the consumer at all..
37. Microenvironment - INTERNAL
37
WEAKNESSES
Company – There weakness as a company they have difficulty rallying the entire company under one brand. It is
difficult to get the company departments to communicate and support each other. It is also a weakness that
Microsoft is new to hardware development and direct consume sales.
Suppliers – Microsoft has a long history as a licensing company and they are new to developing relationships and
negotiating with parts manufacturers. Bad relationships could results in delayed products or shortages.
Marketing intermediaries – Microsoft is inexperienced at operating its own physical stores with less dependence on
marketing intermediaries to help the company promote, sell, and distribute its products to final buyers, it takes the
risk of not being able to do this well and hurting its sales during the learning process.
Competitors – Technology competitors are fast and a product could be released tomorrow making the Surface inferior
and dead in the eyes of the consumer.
Publics
Financial publics: Though it has large cash reserves, Microsoft is also controlled by its shareholders who may
refuse to continue to finance the Surface product.
Government publics: Apple as recently teamed up with IBM to target government contracts.
Citizen-action publics: Microsoft has long been a target of antitrust violation thus have difficult entering new
markets with the speed of smaller competitors.
General public. Microsoft has been long considered a productivity and enterprise company but as a tablet it
needs to garner the reputation of a company that can produce a portable, easy to use and fun to use
consumer product.
Customers – The surface is an attempt to target to the consumer electronics market, where Microsoft has historically
been weak. The SP3 however also targets the business and government markets where it has been very successful.
However this is a very different product than what Microsoft usually markets to its business and government markets.
38. Macro environments - EXTERNAL
38
THREATS
Demographics - There has been a decline in PC sales and Laptop sales for the past few years as more and
more people adopt mobile device. A cross platform device like the SP3 may be affected next.
Economic – If the economic stops improving, the first products to suffer will be niche items like the SP3
Natural – Scarcity of resources such as lithium ion will drive up cost and scare away buyers.
Technological – Technology is innovating at an increasing rate and the SP3 could be lost overnight by a single
announcement of a new better product by a competitor
Political – If countries like China and India suddenly close their doors it will eliminate a huge demand.
Cultural – If a company in china produces its own copy cat device, cultural Chinese may adopt the domestic
product over a heavily taxed import.
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
39. Macro environments - EXTERNAL
OPPORTUNITIES
Demographics – The millennial generation was raise on today’s tech and wants more of it faster
than the last generation. This grows the market for others to gain profits.
Economic – Economies around the world is improving and thus more money is being spent on
personal technology
Natural – The SP3 minimize the number of electronics thus eventual waste. Its notepad
replacement feature decrease paper waste.
Technological – Technology is innovating at an increasing rate where companies that go from idea
to product to sale, all in house can keep up with demand.
Political – As countries like China and India opens their doors it will create a new demand for
technology.
Cultural - Millennials understand the need for a simplification of technology to one device.
39
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
40. Part 1 Endnotes
Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014 [1]
Aurthur, Charles. Digital Wars. Kogan, 2012 [2]
Bradley, Tony. “3 reasons to invest in a Surface Pro 3 instead of an iPad Air 2.” Tech Republic.
October 2, 2014. http://www.techrepublic.com/article/3-reasons-to-invest-in-a-surface-pro-
3-instead-of-an-ipad-air-2/ [3]
Microsoft.com. Warranty Information.
http://www.microsoftstore.com/store/msusa/en_US/pdp/Surface-Pro-
3/productID.300190600?WT.mc_id=sp3pdp-appstory [4]
Operating System Market Share. http://www.netmarketshare.com [5]
Tushneem. “Microsoft needs to up the ante with the Surface RT to gain market share.”
Mobinett. February 4, 2013. http://www.mobinett.com/2013/02/04/microsoft-needs-to-up-
the-ante-with-surface-rt [6]
Bott, Ed. “How Microsoft’s Surface Pro 3 marketing push backfired.” ZD Net. June 19, 2014.
http://www.zdnet.com/article/how-microsofts-surface-pro-3-marketing-push-backfired/ [7]
Microsoft Annual Report 2013 [8]
40
42. Table of Contents
C. Objectives and Issues
1. Statement of marketing objective(s) (for first year only)
2. Issues that may hinder marketing objectives
D. Marketing Strategy Recommendations
1. Positioning strategy
2. Product/Branding strategy
3. Pricing strategy
4. Distribution strategy
5. Marketing Communications objectives
6. Marketing Research
E. Action Programs
1. IMC
2. Message design, content, and structure
3. Media choices
4. Promotion mix tools
F. Budgets
1. Objective/task method
G. Controls
1. Metrics needed to monitor marketing plan progress
42
44. Statement of marketing objectives (year one)
• Microsoft’s objective of selling the Surface Pro 3 is to bring new
customers into the Microsoft eco-system. They know this will
increase their overall profits through up selling.
• First they need to determine what is the break even point. How many
units does Microsoft have to sell before they are able to offset the
cost of manufacturing, distribution and sale?
• Secondly, how much will the sale of the SP3s contribute to the overall
sale of all of its products.
• Thirdly, will the overall sales increase combined with the sale of the
SP3 result in a loss or a profit.
44
[1] Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
45. Issues that may hinder marketing objectives
• There already more established products in the tablet market to
whom Microsoft is attempting to sway to buy the SP3.
• Microsoft is new the hardware market and many people are waiting
to see if their products will become more mainstream before
deciding to buy
• The Tablet/PC hybrid market is a new market that is very niche and
unproven
45
47. Positioning strategy
Microsoft is using a more for less positioning and currently is alone
in this market. As this market grows other competitors may enter
the market and Microsoft should be pre-planning for this possibility.
One strategy may be to split the product line into even further
niches with one leaning toward more the laptop side (13 inch
screen with a better video processors) and one leaning more to the
tablet side (10 inch screen with a smaller processor, but longer
battery life).
By maintaining a shifting position, competitors are trying to keep up
with Microsoft instead of Microsoft trying to keep up with everyone
else.
Microsoft would still be providing more for less but at slightly
different levels within that position.
47
48. Positioning
48
Microsoft’s goal should be to move from being “full of features” to “full of
benefits.”
They need to bring their price point down to closer to the market leader’s
prices to be more attractive.
Removing features cuts cost which lets them reduce prices and combined
with the addition of more benefits adds to the overall value.
49. Feature to remove
• Remove the 5 MP rear camera
• No one should be taking a
picture with a 12 inch device
• No one should be taking a
picture with a 5 MP camera
period
• Remove it and pass on the
savings.
49
[2] Photo. Man Taking picture with a pink iPad.
http://technews.wpengine.netdna-cdn.com/wp-content/gallery/ipad-photos/pink.jpg
50. Benefits to Add
SP3 iPad
The SP3 cannot be opened for repairs, but the iPad can be easily opened
Using screws instead of glue adds benefits without increasing cost.
cracked
nice
[3] IFixIt. Microsoft Surface Pro 3 Teardown.
https://www.ifixit.com/Teardown/Microsoft+Surface+Pro+3+Teardown/26595
51. Benefits to Add
• Add a removable battery.
• It can be hidden behind the
kickstand and would double the
battery life with a hot-swap-able
battery.
• Stop with the glue; make it
upgradeable; this is a secret
benefit that dominates the
word-of-mouth community
51
[3] IFixIt. Microsoft Surface Pro 3 Teardown.
https://www.ifixit.com/Teardown/Microsoft+Surface+Pro+3+Teardown/26595
52. Product Strategy
• Strategy Decision
• Positioning
• Attribute - This should receive the
least attention as the specifications
are only important to the minority
hardcore consumer
• Benefits – Continue to express the
benefits as this is how the majority
of the potential consumer will relate
to the product. This should be done
through storytelling. Messages
should try to think out the 24 hour
use by a student, professional or a
parent.
• Values – Donate SP3 regularly to
schools, hospitals and other non-
profits, in order to create an
emotional connection to the brand
52[4] GSMArena. 2 May 2011. Mobile phone usage report 2011: The things you do.
http://www.gsmarena.com/mobile_phone_usage_survey-review-592p3.php
53. Product Strategy
Augmented product layer:
• Increasing warranties and
services well above the norm
will result in greater confidence
in the product.
• Apple products are not higher
quality. They have better
warranties so when one does
break, complainers don’t hit the
message boards because Apple
just replaces it.
• This means fewer people end up
knowing about the bad apples.
53[5] Apple. Apple Care Products.
http://www.apple.com/support/products/
54. Branding strategy
• Brand equity
• Conduct polls, analyze reviews
and determine the differential
effect of the brand. Determine
how to increase its positive brand
equity.
• Mainly tech sites do the work for
you and you just have to take a
look
• Looking at the poll here you see
that the price is a large hit to the
brand. They did fail to see the
value; Microsoft failed to show
them the value.
54[6] Phone Arena. 22 May 2014. Poll results: What did you think of the Microsoft Surface Pro 3?
http://www.phonearena.com/news/Poll-results-What-did-you-think-of-the-Microsoft-Surface-Pro-3_id56382
55. Pricing strategy
Market-penetration pricing – Since the company’s objective as a new to
market, niche product, it makes the most sense to go with a market-
penetration pricing. Setting a lower initial price will lead to faster adoption of
the product thus a higher chance of upselling to other Microsoft products.
Since the main competitor Apple uses a Market-skimming pricing strategy, this
will help the market-penetration strategy as their will be potential Apple
customers that have not purchased yet and could then be converted into
Microsoft customers.
55
56. Pricing strategy
56
Market-penetration pricing has the added benefit of looking like you are beating out
your competitors. The news do not see the pricing strategy, they just see units sold.
[7] The Motley Fool. October 29 2014. Why Microsoft's Surface Pro 3 Sales Soared as Apple's iPad Sales Plunged.
http://www.fool.com/investing/general/2014/10/29/why-microsofts-surface-pro-3-sales-soared-as-apple.aspx
57. Distribution strategy - exclusive distribution
• As a niche product it doesn’t make
sense to use an intensive
distribution strategy. It makes more
sense to pursue an exclusive
distribution as this will decrease
distribution costs due to the
decrease channels of distribution.
• Ideally, Microsoft should build more
physical locations and handle sales
themselves and also conduct sales
online. Using their own sales teams
ensure the best, most
knowledgeable and focused
attention for their product. This
also benefits the customer as they
received better information to
make their decisions.
57
[8] Techsaucer Blog. August 24 2012. Microsoft opens its retail store – Trying to compete Apple?
https://techsaucer.wordpress.com/2012/08/24/microsoft-opens-its-retail-store-trying-to-compete-apple/
58. Distribution strategy - selective distribution
• If by chance the demand ramps
up too quickly, Microsoft may
need to consider the selective
distribution strategy to handle
the increased demand.
• Best Buy is a strong avenue.
58
[9] iSpot. Best Buy Commercials. http://www.ispot.tv/brands/7c_/best-buy
59. • Microsoft should embrace more word of mouth and social media
campaigns. There should be several dozens of video reviews on
YouTube and blogs talking about the product from the point of view
of multiple different demographics.
• Seeing a person who a consumer can relate to, speak about the SP3
will have a strong effect on that consumer’s desire to buy.
59
Marketing Communications objectives
[10] Youtube. 10 May 2015. Search results for "Microsoft Surface Pro 3 Reviews".
https://www.youtube.com/results?search_query=microsoft+surface+pro+3+review
The Top 4 videos have 2.5 million views. That’s 2.5 million potential customers.
60. Marketing Research
• Exploratory research should be used to determine whether all of the
features are being used. If there are unused features, they can be
removed and the savings can reduce the prices and increase sales.
• If sales are less than expected, descriptive research should be
conducted to determine what the marketing problems are.
• Cause-and-effect of removing and adding features should be
identified through casual research.
60
62. Integrated Marketing Communications (IMC)
• Utilize all of the available channels such as Advertising, Personal
Selling, Public Relations, Direct Marketing, and Sales Promotion.
• However concentrate on low cost methods as this is still a niche
product.
• It will be difficult to have all marketing channels processed through a
central office so an alternative would be to have a central office push
out to the other channels preapproved concepts that guide the
messages that are being communicated out. This could be logos,
mottos, stories, focused ideas such as “sustainable manufacturing.”
• This will ensure integration and coordination between the many
communication channels “to deliver a clear consistent compelling
message about the organization and products”
62
63. Message design, content, and structure
1. Design
a. Get attention – “It’s a Tablet will replace your Laptop”
b. Hold interest – Show that it is different from the competition.
c. Arouse desire – Focus on the benefits.
d. Obtain action – Link to the online store or provide directions to the nearest store
2. Content
a. Rational Appeal – Make the consumer ask themselves, “Why pay for so many devices and proceed to
carry around and switch between these devices?” Then pose to them it is more reasonable to buy one
device that does it all.
b. Relate to the audience’s self-interest – Show the consumers the benefits of having that one device
that can do all of these tasks typically done across multiple devices.
3. Structure
a. Draw a conclusion - due to the fact that it is a niche product in a new market, it is necessary to draw
the conclusion for the consumer
b. Present the strongest arguments first – There are so many features and benefits that its best to go
right into them.
c. One-sided argument: All technology has trade-offs and are subjective thus it should be up to the
consumer to make those judgements.
4. Format
a. This product should be presented in online media types, such as online news sites, blogs, YouTube,
and other avenues that can display the SP3’s long list of features.
63
64. Media choices
Personal communication channels
Face to face – Microsoft Store employees
Internet chat – On the Microsoft website
Online reviews – Encourage customers to leave product review
Word of mouth – Leverage a potential customer’s neighbors, friends, family
members, associates, or other consumers.
Non-personal communication channels
Broad news agencies – Times and Wall Street Journal
Specialty news agencies – CNET, Engagdet, and Techcrunch
Social Media stars - Bloggers and YouTube reviewers
64
65. 65
Advertising
Feature in Film & TV
Feature in Sports
Personal Selling
Build more Microsoft Stores
Public Relations
National News Agency
Specialty News Agencies
Social Media Celebrities
Direct Marketing
Sell from on Microsoft.com
Sales Promotion
Have a trade in offer: A MacBook
for a SP3 discount
All of these strategies
decrease marketing cost
which fits a niche
market product
Promotion mix tools
66. 66
Public Relations
National News Agency
Specialty News Agencies
Social Media Celebrities
Conduct Product Announcements and Press Releases
to the major online news outlets. This is a tech product
and thus is market audience likely uses online news
rather than print news.
Give away free devices to be reviewed by top specialty
news sites, blogs and YouTube channels. We
demonstrated earlier how just the top for YouTube
videos yielded 2.5 million views.
67. 67
Personal Selling
Build more Microsoft Stores
Having a dedicated Personal Selling platform results in the
highest engagement with the customer with the product.
68. 68
Sales Promotion
Have a trade in offer: A MacBook
for a SP3 discount
Discounts can be seen as a sign of product weakness.
Instead, offer a trade in deal for competitor products. Even if only a few participate in the trade
in this is a powerful message to rest of the potential consumers.
“These people switched and so should you”
69. Direct Marketing
Sell from on Microsoft.com
Selling directly through the website results in the lowest overhead. Advertising for this
product should be given space on Microsoft’s main landing page with a redirect to the
Microsoft Store.
70. 7070
Advertising
Feature in Film & TV
Feature in Sports
Product placement in Film, TV, and sports
demonstrates to the public, actual use cases that will
further drive market acceptance.
72. 1. Defining specific promotion objectives:
a. Refer to the marketing objectives slide.
2. Determining the tasks needed to achieve these objectives
a. Educate salesman at the Microsoft store and set quotas
b. Conduct a press release to major news outlets and observe reception
c. Give test units to specialty sites, such as CNET or Engadget and check the reviews
d. Feature on the Microsoft site with links to buy and analyze conversion of views-to-sales.
3. Estimating the costs of performing these tasks.
a. How much of the cost of operating the Microsoft stores is focused on the sale of the
SP3.
b. The largest cost is related to giving away the product to as many people as needed to
get a good word of mouth campaign going.
4. Lastly, the sum of these costs is the proposed promotion budget.
a. It is suggested that majority of the budget should go to product awareness and in
teaching the consumer about the benefits of the product. Flat advertisement would be
wasted as it would not convey the complexity of the problem that the SP3 solves.
72
Objective/task method
74. Metrics needed to monitor marketing plan progress
• Set goals:
• Refer to the marketing objectives slide
• Marketing goals should be at 40% since this is a niche product and we plan to
pursue a low cost strategy. Focusing on inexpensive strategies should yield higher
ROIs for marketing.
• Measure
• Observe on a quarterly basis to see if sales of the SP3 and connected products are
increasing, decreasing, or staying the same
• Evaluate
• Determine whether it is being affected by external factors. For example, a snow
storm could slow sales in a particular area. Examining a competitors sales could
be used to adjust expected vs actual performance.
• Corrective action
• Adjust the marketing plan as needed, such as decreasing price, changing the
message, or the message channel.
• Use the Operating control method to check performance regularly and take
corrective action as necessary.
74
75. Metric 1 Break-Even Price
• Determine a reasonable break even price using this formula:
• Unit cost / (1 – Desired Return on sales)
• For example if the unit cost is $500 and the desired return on sales is
40% then the markup price would be $833.33.
• Since the goal of this product is to bring in customers in order to
upsell them on other products this is an important metric to monitor.
75
76. Metric 2 Return on Marketing Investment
• Determine the ROI price using the following formula
• Unit cost + ((ROI x Investment)/(unit sales))
• For example if the unit cost is $500 and we want a 50% ROI and the
company is investing 50 million dollars and expects to sell 5 million
units, then the ROI price would be $505.
• Carefully consider this in connection to the break even calculation.
76
77. Metric 3 Inventory Turnover
• Inventory Turnover is an important metric that lets you know if you
estimated demand properly, and whether there is the expected
acceptance of the product.
• Calculate this using this formula
• Cost of goods sold / average inventory at cost
• For example, if cost of goods sold for the last quarter was 10 million
and the average inventory at cost was 8 million then the turnover
rate would be 1.25. This number should be compared to industry
averages to give it context.
• Higher numbers typically indicate faster turnover which means there
is an efficient use of capital.
77
78. Part 2 Endnotes
• Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014 [1]
• Photo. Man Taking picture with a pink iPad. http://technews.wpengine.netdna-cdn.com/wp-
content/gallery/ipad-photos/pink.jpg [2]
• IFixIt. Microsoft Surface Pro 3 Teardown.
https://www.ifixit.com/Teardown/Microsoft+Surface+Pro+3+Teardown/26595 [3]
• GSMArena. 2 May 2011. Mobile phone usage report 2011: The things you do.
http://www.gsmarena.com/mobile_phone_usage_survey-review-592p3.php [4]
• Apple. Apple Care Products. http://www.apple.com/support/products/ [5]
• Phone Arena. 22 May 2014. Poll results: What did you think of the Microsoft Surface Pro 3?
http://www.phonearena.com/news/Poll-results-What-did-you-think-of-the-Microsoft-Surface-Pro-3_id56382
[6]
• The Motley Fool. October 29 2014. Why Microsoft's Surface Pro 3 Sales Soared as Apple's iPad Sales Plunged.
http://www.fool.com/investing/general/2014/10/29/why-microsofts-surface-pro-3-sales-soared-as-apple.aspx
[7]
• Techsaucer Blog. August 24 2012. Microsoft opens its retail store – Trying to compete Apple?
https://techsaucer.wordpress.com/2012/08/24/microsoft-opens-its-retail-store-trying-to-compete-apple/ [8]
• iSpot. Best Buy Commercials. http://www.ispot.tv/brands/7c_/best-buy [9]
• Youtube. 10 May 2015. Search results for "Microsoft Surface Pro 3 Reviews".
https://www.youtube.com/results?search_query=microsoft+surface+pro+3+review [10]
78
79. BIBLIOGRAPHY
Kotler, Philip and Armstrong, Gary. Principles of Marketing, 15e. Boston: Pearson, 2014
Aurthur, Charles. Digital Wars. Kogan, 2012 [2]
Bradley, Tony. “3 reasons to invest in a Surface Pro 3 instead of an iPad Air 2.” Tech Republic. October 2, 2014.
http://www.techrepublic.com/article/3-reasons-to-invest-in-a-surface-pro-3-instead-of-an-ipad-air-2/ [3]
Bott, Ed. “How Microsoft’s Surface Pro 3 marketing push backfired.” ZD Net. June 19, 2014.
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Editor's Notes
Student demonstrates superior performance in stating a marketing objective based on an analysis of current marketing situation. Marketing objectives and issues directly link to the situation analysis and are appropriate for the product/market situation. Clearly demonstrates the link between the current marketing situation and the establishment of new marketing objectives to move the product/service forward. Realistic issues in achieving the marketing objective are noted. Student demonstrates superior critical-thinking skills.
Demonstrates superior understanding and application of the marketing concept to the product/service scenario.
Do you want to recommend a change to the positioning strategy to more adequately reflect the value proposition to the primary target market; or is the current positioning strategy sufficient? If so, be sure to justify why the current positioning strategy should continue.
Do you want to recommend a new target market because you conclude the primary target market is saturated and your objectives include developing a new market? If so, describe the target market characteristics for this new group of consumers.
What recommendations would you suggest to change the product/service? Go back to the three levels of the product and make changes that you think would enhance the value proposition. Would you change the packaging? Would you change the branding? Would you suggest additions to the product line? Be sure to provide your rationale.
Be sure to read the text chapter on branding and product decisions to understand how they apply to your case
What changes to the current pricing strategy would you recommend and why?
Hints:
If the product currently uses cost plus or other non consumer focused strategy, a good recommendation might be to change to a consumer focused strategy such as value added or good value pricing.
You can rarely raise the price of a product/service unless you add additional value. If you recommend product changes to enhance the value proposition you can consider a price increase.
Highly competitive product categories are usually victims of the principles of supply and demand, and in that elastic situation may have to lower prices in hopes of increasing sales volume.
Be sure to check out all the pricing issues discussed in Chapter 10 to determine the best pricing approach for your product/service.
What changes might you recommend to the current value chain and value delivery network and why?
Remember, every channel member needs to be performing some value added service in order to be included in the value chain.
Hints:
If delivery is an issue for your product/service, changes are good that some change will need to be made. This includes post purchase services.
May want to draw a recommended channel system design
What changes would you recommend to the marketing communications strategy to more adequately communicate the value proposition to your primary target market? How would the marketing communications integrate to provide synergy to reinforce the brand. Be sure to list which promotion mix tools would be used to reach each of the objectives. You should have at least three marketing communication objectives. Is your marketing communications strategy mostly push or pull and why.
Hints:
Use the buyer readiness stages, Figure 14.3 and related discussion in Chapter 14, page 414 in the text 15th ed. and the related discussion on communication objectives in Chapter 14 and develop several marketing communications objectives.
Warning, the example of Marketing Communications in the Appendix plan is NOT sufficient; you need to include a discussion of how the promotion tools integrate.
How will marketing research be used to support development, implementation, and evaluation of strategies and action plans?
Although the marketing research chapter was not covered in class, it might provide you with some ideas on how marketing research can support your marketing objectives.
Hints
If you developed an objective to expand the product line, your market research needs might include some test marketing to ensure the new product meets the consumer needs you identified. Similarly, if you developed an objective to increase brand name awareness, you might need a pretest of the current brand name awareness so you have a base line on which to gauge any increase in brand name recognition as a result of the marketing recommendations.
Demonstrates superior understanding of how IMC can be used to support the marketing objectives of the product/service scenario and recommended marketing strategies. Applies the AIDA model to illustrate how the promotion tools would mix. Recommends message, media, and promotion-mix tools that are appropriate for the recommended marketing strategies.
Student provides a thorough discussion of how the objective-and-task method can be used to execute promotion strategy. Details such as media rates are not required.
Student outlines at least three marketing metrics that can be used to monitor the marketing plan.