The personal computer market was in its early stages in the 1970s. Computers were mainly mainframes and minicomputers used by professionals. The invention of the microcomputer in the late 1970s helped expand the market. Early marketing strategies involved informative advertising to educate customers. Personal computers were marketed as productivity tools for home and office. Distribution was selective through stores like Radio Shack. Pricing used a cost-plus approach to attract early buyers as the industry grew slowly. Celebrities helped promote the new technology through various advertising channels.

1. PERSONAL
COMPUTER
MARKETING
IN THE 1970S
Presented by: Asifa Ishrat
University of Dhaka

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

6. Marketing
strategies
for
introduction
stage
of product
Advertising Sales
promotion
Distribution Price
Informative
advertising
Heavy sales
promotion
to attract
trial
Building
selective
distribution
Cost-plus
Source: Kotler P,Keller KL,2009,Marketing Management,13th ed,NJ:
Prentice Hall,p. 288

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]