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For example, the company donates computer hardware and software products to nonprofit organizations and provides financial support for programs that help at-risk youth. Donations and related activities are executed through this philanthropic arm. While the discounts for military personnel also function as a public relations tactic, the company’s main public relations strategy is implemented through Microsoft Philanthropies. In personal selling, Microsoft Store sales personnel present products and their features to potential buyers. On the other hand, the company uses direct marketing for sales deals with organizations, such as academic institutions. For example, students and military personnel and veterans can purchase the company’s products at discounted prices.
In sales promotions, the firm uses discounts and other incentives to attract customers. Microsoft’s biggest promotion expense is on advertising, such as the “Women Made” Super Bowl ad, which enhances the company’s corporate image. Considering the conditions of the computer hardware and software market, the strategies and tactics in Microsoft’s promotional mix are prioritized as follows: Microsoft’s concern in this element of the marketing mix focuses on effective communication strategies and tactics used to attract target customers. Microsoft Corporation’s Promotion (Promotional Mix)
This element of the marketing mix shows an expanding reach to the global computer hardware and software market, thereby supporting efforts to capture every person as a customer, as highlighted in Microsoft’s vision statement and mission statement.
These stores, although limited in number, are another direct approach to marketing, enabling the company to enhance brand image and improve customer experience. On the other hand, Microsoft Stores are physical retail stores where customers can access a variety of the company’s products, such as smartphones and Xbox units. These sellers, typically located in strategic commercial areas around the world, enable the company to reach target markets. In addition, the firm’s authorized sellers provide a direct approach to sales and marketing. At present, this online place is a major avenue for the company’s revenues.
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In the case of Microsoft, the following venues are used to distribute products:Ĭustomers can access, purchase or download software products through Microsoft’s official website and online store. In this element of the marketing mix, the locations or places for transacting with customers are considered. Microsoft Corporation needs to maximize its reach in the computer hardware and software market. Place/Distribution in Microsoft’s Marketing Mix Such a condition is connected to Microsoft’s generic strategy and intensive growth strategies, which emphasize growth by penetrating markets and providing attractive products. This element of Microsoft’s marketing mix reflects the increasing diversification of the company’s products. In the Entertainment category, the company also keeps a percentage of all movies and songs sold through its website.
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The Games product line covers the Xbox games, Windows games, and related gaming software. The company keeps a percentage of all revenues generated through sales of third-party apps on Microsoft online stores.
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For example, these apps include Microsoft Remote Desktop (from Microsoft Corporation) and the proprietary Drawboard PDF (from Drawboard).
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In the Apps product line are other free and proprietary software products from the company, as well as from third parties. For example, such software products include Microsoft Office and Windows OS. On the other hand, the company puts systems software or basic software under the Software category. Microsoft’s devices include hardware products, such as personal computers, tablets, Xbox, and Windows phones. To ensure continued success in the global market, Microsoft must match its marketing mix with the characteristics of target markets worldwide. However, competitive rivalry and related issues, as shown in Microsoft’s Five Forces Analysis, threatens such market position. As a major competitor in the computer hardware and software market, the company enjoys high revenues. In this case, Microsoft uses online technology and technological measures to protect digital products. An organization’s marketing mix or 4Ps (Product, Place, Promotion & Price) determines the strategies and tactics for implementing a marketing plan. Microsoft Corporation’s marketing mix is a showcase of how rapid innovation combines with effective approaches to maintain a strong share of the market. Microsoft Corporation’s marketing mix (4Ps) shows reforms and strategic change in products, prices, places, and promotion activities to improve the computer hardware and software business.