Microsoft was created in 1975 and is headquartered in Redmond, Washington, employing over 91,000 people globally. It has two main products, Microsoft Windows and Microsoft Office, as well as other products like Xbox, MSN, and Bing. Microsoft has a strong brand reputation but faces threats from competition and changing consumer needs. It targets both business and personal users with products tailored for each segment. Microsoft utilizes various marketing strategies across social media and digital platforms to promote its wide range of software and services.

1. High Flyers

2. Company Introduction
• Created in 1975 by Paul Allen & Bill Gates.
• Head Quartered in Redmond, Washington.
• Working 91,005 employees in 105 countries.
• Net Revenue 74.3$ billion in 2012.

3. Product Categories
• Two main products:
Microsoft Windows Microsoft Office
• Other products:
MSN Encarta PC accessoires Xbox

4. SWOT Analysis
Strengths
•Brand loyalty & brand reputation
•Easy to use software
•Strong distribution channels
•Robust financial performance
•Acquisition of Skype
Weaknesses
•Poor acquisitions and investments
•Dependence on hardware
manufacturers
•Criticism over security flaws
•Mature PC markets
•Slow to innovate
Opportunities
•Mobile advertising
•Mobile device industry
•Growth through acquisitions
Threats
•Intense competition in software
products
•Changing consumer needs and habits
•Open source projects
•Potential lawsuits

5. STP of Microsoft
• Segmentation & Targeting – Mass market
&distribution
E.g. –Microsoft office world wide
BUT;
user based ( business and personal)
E.g. – Personal – windows home premium
Business – Windows professional
• Positioning – Service focus strategy
Narrow range of services to fairly broad market

6. 7Ps of Microsoft
• Product
- Mostly known for Windows. Apart from that,
Office, Xbox, Live, MSN, Online services, Server
and tools, Programming languages, Windows
Phone, Gaming, Bing, and more.
• Price
Pricing strategy-Skimming pricing
Pricing method- Competitive pricing
• Place
Virtual & Physical

7. • Promotion
Using all social media forums such as Facebook,
Twitter, Google+ etc. & web banners
• People
Employees, direct and indirect agents
• Process
Identifying software requirements through surveys
Introducing through alpha, beta versions
Gathering more information to commercialize
• Physical Evidence
Search engine web pages(MSN, Bing, Live search)
Eye catching pickings with unique characteristics

8. Four broad categories of services
• Based on differences in nature of service act
(tangible/intangible) and who or what is direct
recipient of service (people/possessions), there
are four categories of services:
People processing
Possession processing
Mental stimulus processing
Information processing

9. Four categories of services
People Processing Possession Processing
Mental Stimulus Processing Information Processing
People Possessions
Tangible
Actions
Intangible
Actions
Who or what is the direct recipients of the service?
natureoftheserviceact

10. Technology in services of
Microsoft
• Technology-free service encounter
E.g. Buying PC accessories from physical outlet
• Technology mediated service encounter
E.g. Buying PC accessories or software through E-bay
• Technology-generated service encounter
E.g. searching information using MSN or Bing

11. Service strategies of Microsoft
• Differentiation strategy
• New service development strategy
• Globalization strategy
• Complementary service providing strategy

12. Differentiation Strategy
• Providing service in tangible & intangible manner
Intangible – download through the website of
Microsoft
Tangible – selling software through CD & DVDs
• Software suits
Office package - Ms Excel, Ms word, Ms Access,
Ms PowerPoint etc.
• Upgrading service
Windows 95, 98, XP, Vista, Seven, Eight
• Giving attention to personnel training

13. New service development
strategy
Radical innovations
•Start-up business
E.g. Introducing “Live search” as a search engine
tool in addition to MSN
Incremental innovations
•Service improvements
E.g.MS office package 2007 to 2010

14. Globalization strategy
• Customization
– Standard setting with slight differences
Skype- language basis
Operating system( Windows)- slight differences of the
interface according to different target audience such
as professionals, official and business users
• Information intensity
Digitalized information helps to globalize the service
• Complexity
Microsoft personnel keeps updating back office task
to move to the next version
E.g. MS office package 2007 to 2010

15. Complementary service
providing strategy
• Application software with operating systems
• Software solutions with computer accessories to
support them.

16. THANK YOU !