Marketing Dt: March 10

management 2011

Marketing mix and marketing

statergy of

2nd sem
MBA

Prepared by :- Dimple.Kalani
Enrollment no :-50
Submitted to :- Prof. Snehal
Bhatt
Microsoft Corporation is an American public multinational corporation
headquartered in Redmond, Washington, USA that develops, manufactures,
licenses, and supports a wide range of products and services predominantly related
to computing through its various product divisions.

Fortune 500 listing year 2010 – 36

Fortune 500 listing year 2009 – 35

Fortune 500 listing year 2008 – 44

What is Microsoft mission vision statement?

"Create experiences that combine the magic of software with the power of
Internet services across a world of devices."

Steve Ballmer (CEO)

COMPANY

HEADQUARTERS:

Profit $18.760 billion (2010) Employees 89,000 (2010)

 MARKETING MIX

PRODUCT PRICE

Windows Server Standard 2008 Price

Rs. 30000/-
32-bit/x64 English DVD 5 Clt

Windows Server Standard 2008 Price

Rs. 47,714/-
32-bit/x64 English DVD 10 Clt

Windows Small Business Server

Rs. 49,550/-
Standard

Windows Server Enterprise 2008 Rs. 1,71,900/-

Windows 7 Professional Rs. 8,200/-

Microsoft Windows Vista Ultimate

(66R-00765) Rs. 6,639.60/-
PLACES (GEOGRAPHICALLY) WHERE PRODUCTS ARE
SOLD:

All over the world. Microsoft has 95% market share in its segments of server
packs and has monopoly in many of its segments.

PROMOTION:
Although no need for promotion in a monopoly sort of environment Microsoft
gives trial versions and has freeware editions of many of their software.

Almost every computer promotes Microsoft when it boots up.

CONCRETE EXAMPLE:

Microsoft spent US$9M advertising the Zune in 2006. As a result, the Zune
achieved 10.8 percent of the over $250 hard drive based music players compared
to Apples 86.1 percent. Overall, Zune has 2.2 percent market share for all MP3
players.
 MARKETING STRATEGY

SEGMENTATION

Market segmentation is a concept in economics and marketing. A market

segment is a sub-set of a market made up of people or organizations with one or
more characteristics that cause them to demand similar product and/or services
based on qualities of those products such as price or function. The people in a given
segment are supposed to be similar in terms of criteria by which they are segmented
and different from other segments in terms of these criteria. These can broadly be
viewed as 'positive' and 'negative' applications of the same idea, splitting up the
market into smaller groups.

Examples:

• Gender
• Price
• Interests

Global Market Segmentation

A basis for segmentation is a factor that varies among groups within a market,
but that is consistent within groups. One can identify four primary bases on
which to segment a consumer market:

• Geographic segmentation:

Is based on regional variables such as region, climate, population density, and

population growth rate.

 Microsoft segments its products like surface and cloud computing in

American continent and Europe. However it has slated its release of beta
versions of windows8 all over Asia next month.

• Demographic segmentation is based on variables such as age, gender,

ethnicity, education, occupation, income, and family status.
 Windows based phones are targeted for business cult and android or cloud
computing is targeted for age group 20-30 groups.

• Behavioral segmentation is based on variables such as usage rate and

patterns, price sensitivity, brand loyalty, and benefits sought.

 China and eastern Asia is targeted with cheaper products like the windows
phone7 in asia has been priced at $99 with a years contract.
 However Americans have to bear it at $159 with a years contract.
Type Public (NASDAQ: MSFT)
Dow Jones Industrial Average
Component
S&P 500 Component

Industry Computer software

Consumer electronics
Digital distribution
Computer hardware
Video games
IT consulting
Online advertising
Retail stores
Automotive software

Founded Albuquerque, New Mexico

April 4, 1975

Founder(s) Bill Gates

Paul Allen

Headquarters One Microsoft Way

Redmond, Washington,
United States

Area served Worldwide

Key people Steve Ballmer (CEO)

Brian Kevin Turner (COO)
Bill Gates (Chairman)
 Ray Ozzie (CSA)
Craig Mundie (CRSO)

Revenue $62.484 billion (2010)

Operating income $24.098 billion (2010)

Profit $18.760 billion (2010)

Total assets $86.113 billion (2010)

Total equity $46.175 billion (2010)

Employees 89,000 (2010)

Products

• Windows Server Standard 2008 Price 32-bit/x64 English DVD 5 Clt – Rs.
30,000/-

• Windows Server Standard 2008 Price 32-bit/x64 English DVD 10 Clt – Rs.
47,714/-

• Windows Small Business Server Standard Price – Rs. 49,550/-

• Windows Server Enterprise 2008 Price – Rs. 1,71,900/-

• Windows 7 Professional cost = Rs. 8,200/- Indian Rupee (INR)

• Microsoft Windows Vista Ultimate (66R-00765) = 6,639.60/-

Places (geographically) where products are sold.

All over the world. Microsoft has 95% market share in its segments of server packs
and has monopoly in many of its segments.

Promotion

Although no need for promotion in a monopoly sort of environment Microsoft gives

trial versions and has freeware editions of many of their software.

Almost every computer promotes Microsoft when it boots up.

Marketing
In 2004, Microsoft commissioned research firms to do independent studies
comparing the total cost of ownership (TCO) of Windows Server 2003 to Linux; the firms
concluded that companies found Windows easier to administrate than Linux, thus
those using Windows would administrate faster resulting in lower costs for their
company (i.e. lower TCO). This spurred a wave of related studies; a study by
theYankee Group concluded that upgrading from one version of Windows Server to
another costs a fraction of the switching costs from Windows Server to Linux,
although companies surveyed noted the increased security and reliability of Linux
servers and concern about being locked into using Microsoft products. Another
study, released by the OSDL, claimed that the Microsoft studies were "simply
outdated and one-sided" and their survey concluded that the TCO of Linux was
lower due to Linux administrators managing more servers on average and other
reasons.

As part of the "Get the Facts" campaign Microsoft highlighted the .NET trading
platform that it had developed in partnership with Accenture for the London Stock
Exchange, claiming that it provided "five nines" reliability. After suffering extended
downtime and unreliability the LSE announced in 2009 that it was planning to drop
its Microsoft solution and switch to a Linux based one in 2010.

Microsoft adopted the so-called "Pac-Man Logo", designed by Scott Baker, in

1987. Baker stated "The new logo, in Helvetica italic typeface, has a slash between
the o and s to emphasize the "soft" part of the name and convey motion and
speed." Dave Norris ran an internal joke campaign to save the old logo, which was
green, in all uppercase, and featured a fanciful letter O, nicknamed the blibbet, but it
was discarded. Microsoft's logo with the "Your potential. Our passion." tagline below
the main corporate name, is based on a slogan Microsoft used in 2008. In 2002, the
company started using the logo in the United States and eventually started a TV
campaign with the slogan, changed from the previous tagline of "Where do you want
to go today?". During the private MGX (Microsoft Global Exchange) conference in
2010, Microsoft unveiled the company's next tagline, "Be What's Next.", as well as a
new logo scheduled for use sometime in the future.

Pic of headquarter & Steve Ballmer (CEO)

Logos over the years:

Additional info

Major Acquisitions of Microsoft

Date Company Business Country Value (USD)

June 29, United
Forethought Computer software —
1987 States
March 31, Consumers
Software Canada $20,500,000
1991 Software
June 29, PC database United
Fox Software $174,800,000
1992 software States
 Wholesale 3-D
February
Softimage visualization Canada $139,000,000
28, 1994
software
September United
Altamira Software Software —
27, 1994 States
November United
NextBase Software —
1, 1994 States
November United
One Tree Software Software —
15, 1994 States
February 3D graphics United
RenderMorphics —
23, 1995 hardware States
July 10, United
Network Managers Systems design —
1995 States
October Blue Ribbon United
Software —
17, 1995 Soundworks States
November United
Netwise Computer software —
6, 1995 States
December Bruce Artwick United
Programming —
12, 1995 Organization States
January Vermeer United
Software —
16, 1996 Technologies States
VGA-Animation
March 6,
Software Div[note Software Germany —
1996
1]
March 12, United
Colusa Software Software —
1996 States
April 16, Video game United
Exos —
1996 controllers States
April 23, Aspect Software United
Computer software $14,150,000
1996 Engineering States
June 11, United
eShop Software —
1996 States
June 17, United
Electric Gravity Electronic games —
1996 States
November Panorama Software
Software Canada —
1, 1996 Sys-On-Line[note 2]
February United
NetCarta Internet software $20,000,000
3, 1997 States
April 30, Internet service United
WebTV Networks $425,000,000
1997 provider States
May 7, Java-based United
Dimension X —
1997 platforms States
June 13, United
Cooper & Peters Programming —
1997 States
June 30, Internet software
LinkAge Software Canada —
1997 development
August 5, Internet video United
VXtreme —
1997 software States
December United
Hotmail Internet software $500,000,000
31, 1997 States
Relationship
April 15, United
Firefly management $40,000,000
1998 States
software
April 28, Data sharing United
MESA Group —
1998 software States
August 25, United
Valence Research Internet software —
1998 States
November Internet advertising United
LinkExchange $265,000,000
6, 1998 network States
January Computer game United
FASA Interactive —
11, 1999 software States
March 4, United
CompareNet Shopping online —
1999 States
March 26, Numinous United
Software —
1999 Technologies States
April 27, Interactive Objects- United
Web music software —
1999 Digital States
April 30, Internet service United
Jump Networks —
1999 provider States
June 7, ShadowFactor Wholesale computer United
—
1999 Software software States
June 15, United
Omnibrowse Internet software —
1999 States
June 28, Defect detection United
Intrinsa $58,900,000
1999 software States
July 1,
Sendit Application software Sweden $125,420,000
1999
July 7,
Zoomit Encryption software Canada —
1999
July 21, United
STNC Community software —
1999 Kingdom
September Computer United
Softway Systems —
19, 1999 programming States
October United
Entropic Software —
29, 1999 States
January 7, Wholesale drawing United
Visio Corporation $1,375,000,000
2000 software States
February Peach Networks Digital TV services Israel —
29, 2000
March 17, Internet service United
Travelscape $89,750,000
2000 provider States
April 12, Titus United
Cable television $944,800,000
2000 Communications States
June 19, United
Bungie Software Computer software —
2000 States
July 12, United
NetGames Software —
2000 States
September Online music search United
MongoMusic $65,000,000
13, 2000 engine States
September Digital audio United
Pacific Microsonics —
27, 2000 technology States
March 17, Internet service United
Vacationspot $70,850,000
2001 provider States
Business
April 5, Great Plains United
management $939,884,000
2001 Software States
software
May 2, Intellisol
Software Canada —
2001 International
May 31,
NCompass Labs Internet software Canada $36,000,000
2001
June 21, Maximal
Software Israel $20,000,000
2001 Intelligence
July 1, Online Spanish United
Yupi —
2001 Portal States
January 3, South
Korea Telecom Telecommunications $500,000,000
2002 Korea
March 11, Classic Custom United
Travel agency $78,000,000
2002 Vacations States
May 22, Sales Management United
Software —
2002 Systems States
July 12, Software
Navision Denmark $1,330,000,000
2002 programming
July 29, United
Mobilocity Computer consulting —
2002 States
September United
XDegrees Security software —
10, 2002 States
September Software and video United
Rare $375,000,000
24, 2002 games Kingdom
December Online enterprise United
Vicinity $95,849,000
13, 2002 location States
February United
Connectix Software —
25, 2003 States
March 3,
DCG Internet software Australia —
2003
April 30, United
PlaceWare Web conferencing $200,000,000
2003 States
May 27, Information United
G.A. Sullivan —
2003 technology States
June 10,
GeCAD Software Antivirus technology Romania —
2003
August 29, 3DO Co-High Heat United
Software $450,000
2003 Baseball States
April 22, Encore Bus United
IP assets —
2004 Solutions-IP Asts States
April 26, United
ActiveViews Reporting systems —
2004 States
July 16, United
Lookout Software Personal search tool —
2004 States
December GIANT Company United
Anti-spyware —
16, 2004 Software States
March 2, United
en'tegrate Software —
2005 States
April 9, United
Groove Networks Community software —
2005 States
May 11, United
MessageCast Messaging $7,000,000
2005 States
May 31, Tsinghua-Shenxun-
Certain assets China $15,000,000
2005 Cert Asts
June 21, United
Sybari Software Software —
2005 States
August 29, United
Teleo VoIP —
2005 States
August 31, FrontBridge United
Email protection —
2005 Technologies States
Certificate
September United
Alacris management —
19, 2005 States
software
November
media-streams.com Software Switzerland —
3, 2005
November
5th Finger Mobile Australia $3,153,000
17, 2005
January UMT-Software and United
Software —
19, 2006 IP Assets States
February
MotionBridge Search France $17,858,000
13, 2006
February Seadragon Software United —
13, 2006 Software States
March 7, United
Apptimum Software —
2006 States
March 7, United
Onfolio Internet software —
2006 States
April 6, United
Lionhead Studios Video games —
2006 Kingdom
April 26,
AssetMetrix Enterprise software Canada —
2006
May 4, Massive Video game United
—
2006 Incorporated advertising States
May 4, United
Vexcel Mapping software —
2006 States
May 15, United
DeepMetrix Web log analysis —
2006 States
June 6, United
ProClarity Analysis software —
2006 States
June 27, Digital asset United
iView Multimedia —
2006 management Kingdom
application
July 17, United
Softricity virtualization —
2006 States
software
July 18, United
WinternalsSoftware Software —
2006 States
July 26, Whale United
Applications —
2006 Communications States
September
Gteko Applications Israel —
26, 2006
October 2, United
DesktopStandard Applications —
2006 States
October Natural language United
Colloquis —
12, 2006 software States
March 9, Internet search United
Medstory —
2007 engine States
March 26, devBiz Business United
Software tools —
2007 Solutions States
May 3, Advertising and
ScreenTonic France —
2007 marketing
May 3, Mobile phone United
Tellme Networks —
2007 software States
May 9, Business United
SoftArtisans —
2007 Intelligence software States
June 4, Information United
Engyro —
2007 technology States
June 7, Application United
Stratature —
2007 management States
June 29, Savvis Inc-Data United
Networking $200,000,000
2007 Centers States
August 13, United
AdECN Ad Exchange —
2007 States
August 13, United
aQuantive Digital marketing $6,333,000,000
2007 States
October 2, United
Jellyfish.com Search engine —
2007 States
October 5, Enterprise United
Parlano —
2007 messaging software States
October Global Care
Assets Thailand —
29, 2007 Solutions-Assets
November HOB Business Information
Denmark —
1, 2007 Solutions technology
December United
Multimap.com Mapping —
12, 2007 Kingdom
January Calista United
Software —
22, 2008 Technologies States
February Caligari United
Software —
7, 2008 Corporation States
February
YaData Software Israel —
27, 2008
Advertising yield
March 14, United
Rapt management —
2008 States
software
March 19, Rootkit security United
Komoku $5,000,000
2008 software States
March 31, Business
90 Degree Software Canada —
2008 intelligence software
April 14, Online search United
Farecast $75,000,000
2008 software States
April 15, Mobile Internet United
Danger $500,000,000
2008 software States
April 25, Fast Search &
Enterprise search Norway $1,191,000,000
2008 Transfer
May 26, United
Kidaro Software —
2008 States
June 4,
Quadreon Software Belgium —
2008
June 18, Management United
Navic Networks —
2008 software States
June 26, Mobicomp Mobile applications Portugal —
2008
August 11, United
Powerset Semantic Search —
2008 States
September United
DATAllegro Data software —
16, 2008 States
September Search and e- United
Greenfield Online $486,000,000
28, 2008 commerce services States
May 7, Interactive online
BigPark Canada
2009 gaming
Bioinformatics
June 1, Rosetta United
solutions for life
2009 Biosoftware States
science research
September Interactive United
Software
22, 2009 Supercomputing States
December
Opalis Software Software Canada
10, 2009
Identity and Access
December Management United
Sentillion, Inc.
10, 2009 Software for States
Healthcare
United
October 3-D sensing
Canesta, Inc. States
29, 2010 technology