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MARKETING & HUMAN RESOURCE MANAGEMENT
DHIRAJ ARORA
T.Y.B.COM
DIV-A
ROLL NO.-104
TOPIC- APPLE VS. MICROSOFT-MARKETING MIX, FUNCTIONS & STRATIGIES
ACADEMIC YEAR- 2010-2011
SUBMITTED TO-PROF. RESHMI ACHYUTHAN
M.K. SANGHVI COLLEGE OF COMMERCE &ECONOMICS
MARKETING MIX-INTRODUCTION
WHAT IS MARKETING MIX?
The marketing mix is an important set of parameters that can be adjusted to create
an ideal marketing strategy. Every product has a unique set of marketing needs
which can be broadly placed into four categories: product, price, place, and
promotion . Each of these categories is variable and marketers must make
decisions to control their effect on the overall marketing strategy. Finding the
optimal blend of each variable will contribute to a successful marketing campaign.
THE 4 P’S OF MARKETING MIX
P roduct
The product category refers to the marketer’s ability to make changes to the
product’s style, name, packaging, quality, etc. Changes to the physical product can
be used to make the product more attractive to the targeted customer base.
Competitive markets have caused businesses to make decisions that affected the
look and appearance of a product in order to draw the attention of customers. Most
products require some degree of marketing input, regardless of quality or condition
P rice
Price is the second component of the marketing mix and plays an important role in
the marketing strategy. When shopping for similar products, price is often the
factor that determines the customer’s purchasing decision. Both consumers and
businesses place a high level of importance on the price of a product. Marketers
look at the prices of competitors and make pricing decisions based on the demand
of the market. Many companies lay out a strategy to price their products below
those of competitors, although this is not always the case.
P lace
Place refers to the availability of a product in a location or geographical region.
Some products are available worldwide, whereas others can only be purchased in a
very specific region. Many products are available only through an individual store
front, while others can be purchased in thousands of different locations. The
internet has greatly expanded the visibility of many products by allowing
customers to place orders over the web. Many businesses have recognized the
value that the internet has in marketing and have produced websites that help sell
their products. A store can amplify their customer base with a relatively low
investment by promoting their products over the internet.
P romotion
The final step in the marketing mix is promotion, which refers to the way a
business publicizes its product offerings. There are many approaches to this step
and it is often referred to as advertising. Some of the most common advertising
mediums include television, radio, print, and the internet. Ultimately, the
advertising medium will be dependent upon the needs of the business and the
strategy outlined in the marketing plan. The primary goal of this step is to educate
the target customers and give them a compelling reason to purchase the product. In
addition, the promotion step also includes sales and public relations. Sales are an
important part of nearly every business and can have a significant impact on the
marketing plan of a company. A salesperson has direct contact with the customer
and has the responsibility of displaying a positive image of the product and
building a relationship with the customer. Most marketing strategies will contain a
combination of both advertising and sales. The advertising efforts will initially
draw the attention of the customer and the sales effort will close a deal. Sales can
be conducted in person, over the phone, and even online. New internet
technologies have been supplementing and in some cases replacing the duties that
have been traditionally handled by sales reps. A balanced combination of sales and
advertising will lead the healthy promotion of a product.
THE APPLE VS. MICROSOFT RIVALRY
There's no love lost between Microsoft and Apple Computer. Since the mid-1970s
Bill Gates and Steve Jobs have been pretty much obsessed with each other. In the
1980s that fixation turned into corporate one-upmanship. More often than not
Microsoft dominated, as evidenced by the Windows operating system's 95%
market share. Yet Apple, no question, is the better marketer.
Experiential marketing figures prominently in the campaign. The iPhone print ads
encourage readers to try it, as well as everything else Apple sells at its retail stores.
Apple's current television commercials play on the perception that Mac people are
cool and hip, while PCs are for the nerdy and square. The actors have more than a
passing resemblance to Jobs and Gates.
Apple's iPod transformed the digital music business. MP3 players were already out
there, but Apple's was easy to use. Its sleek design adorned everything from the
silhouette ad campaign to the device's compact packaging.
Microsoft utilizes both advertising and sales techniques to promote their products.
Some of their most visible marketing campaigns have been conducted over the
internet and television . Advertisements over these mediums are primarily targeted
at the end users of the software. The majority of computer users are already
familiar with Microsoft products so much of the advertising is focused on upgrades
and product enhancements. The majority of salesmanship is directed towards
computer manufacturers. By developing relationships with computer
manufacturers Microsoft has been able to sell their product to consumers as part of
a package. This strategy has proved to be very successful and has established the
company as the market leader in the software industry.
APPLE’S PRODUCTS
Mac and Accessories
Mac mini , consumer sub-desktop computer and server introduced in 2005.
iMac , consumer all-in-one desktop computer introduced in 1998.
Mac Pro , workstation-class desktop computer introduced in 2006, replacing the Power Macintosh.
MacBook , consumer notebook introduced in 2006, replacing the iBook, now only being sold to educational institutions.
MacBook Pro , professional notebook introduced in 2006, replacing the PowerBook.
MacBook Air , ultra-thin, ultra-portable notebook introduced in 2008.
iPad
iPod
iPod Classic
iPod Nano
iPod Shuffle
iPod Touch
iPhone
Apple TV
Software- Macs, Mac OS X, Mac OS X Lion
MICROSOFT PRODUCTS
Internet applications
Internet Explorer Windows Mail
Windows Live
Windows Live Messenger
Windows Live Writer
Microsoft Messenger for Mac
Microsoft Agent
Live Mesh
Bing (search engine)
Windows Live Movie Maker
Office applications
Microsoft Works Microsoft Office , including:
Core — Excel, Word, Outlook, PowerPoint
Others — Access, InfoPath, Publisher, FrontPage, Microsoft Groove, Visio, Picture Manager, Microsoft Project, OneNote,Communicator, Assistant, Student, Producer
Mac — Microsoft Entourage & Microsoft Office 2008 for Mac
Office web services — Microsoft Office Online and Microsoft Office Update
Office companion servers — Live Communications Server, Project Server, SharePoint Portal Server.
Graphic design
AutoCollage 2008 Microsoft Expression Studio
Microsoft Expression Web
Microsoft Expression Blend
Microsoft Expression Encoder
Microsoft Expression Media
Utilities
Microsoft Calculator Microsoft Mathematics
Microsoft Paint
Microsoft Notepad
Microsoft Chart
Microsoft Reader
Windows Defender
Windows SteadyState
Microsoft Security Essentials
Mobile
Windows Live Messenger Microsoft Tag Reader
Other
Microsoft MapPoint Windows Media Player
Windows Movie Maker
Development
Visual Studio 2008 Express Visual Studio 2010
Visual Studio 2010 Express
WebMatrix
Microsoft Virtual PC
WorldWide Telescope
Business
Windows Server System Microsoft Commerce Server
Microsoft Dynamics
Microsoft SQL Server
Microsoft Exchange Server
Microsoft BizTalk Server
Microsoft Virtual Server
Microsoft FRx
Microsoft CRM
Microsoft Forecaster
Microsoft Small Business Financials
Microsoft System Center — family of Management Products, including DPM, MOM, and SMS
Entertainment
Age of Empires series Freelancer
Halo series
Microsoft Flight Simulator series
Midtown Madness series
MARKETING MIX
APPLE-
Apple, Inc originated from the friendship and mutual interests of Steve Wozniak
and Steve Jobs. The Two collaborated in the development of the “Apple I in the
early 1970s. The Apple I was a step ahead of most computers of the time featuring
a use of a TV as a display system and a cassette interface for recording programs.
After obtaining financing for the development of Apple II, the Apple Computer
Company was formed in 1970.As the growth of home computer use grew, Apple
grew with it. In 1980 the company issued its initial public offering of investment
stock.
Apple next introduced the MacIntosh Computer in 1983 during the Super Bowl.
The computers desktop publishing features provided the foundation for future
innovations that have become standard for the company. Today Apple, Inc has
more than 33,000 employees and revenues exceeding 42 million dollars.
Product Portable Computers – including Mac products such as Mac Book Pro, iMac,
MacBook Air, Mac Mini, Xserve
Servers – including Xserve, Xsan, MacOS X Ser, MobleMe.
Accessories – including MagicMouse, Keyboard, Led Cinema Display.
Wi-fi Based Stations - including Airport Express, Airport Extreme, Time Capsule.
Developer – including Developer Connection, Mac Program, iPhone Program.
iPod – including iPod Shuffle, iPod Nano, ipod Classic.
iPhone – including iPhone3GS, iPhone3G, iPad.
iTunes – including movies, TV shows, audio books, games.
Price Apple is a premium brand computer that does not attempt to compete on
price. The company has reduced prices after some initial product launches. It uses skimming and preimuim pricing strategies.
The AppleiPad is priced at a minimum of $499.
The Apple iPhone costs begin at $99.
The Apple iPod Classic is priced starting at $249.
The Apple iPod Nano costs $149.
The Apple Mac Book costs $999.
The Apple MacBook Pro is priced at $1199.
The Apple Quicktime Pro for Windows costs $29.99
Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response dictates such action. This would be consistent with a similar $200 price cut on the iPhone in 2007.
In 2009 Apple announced a reduced cost pricing structure for iTunes - songs will cost 69 cents, 99 cents or $1.29. He said the "vast majority" of the songs will cost 69 cents. Changes are said to be a response to a slower pace of music downloads.
Place Apple, Inc Headquarters are located at is located at 1 Infinite Loop,
Cupertino, California.
The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. Certified on Apple technologies, these providers deliver on-site technology services and support to home users and businesses of all sizes.
Apple service providers are certified technicians, who complete regular Apple training and assessments, and offer repair services, and exclusive access to genuine Apple parts.
They are located in Asia/Pacific, Africa, the Middle East Europe and Latin America.
Apple has over 200 retail stores worldwide including the US, UK and Canada. Apple recently opened a new retail store in Shanghai China.
Promotion Apple, Inc offers special discounts on refurbished MacIntosh computers,
iPod Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on the all products.
Apple, Inc authorized Training Centers are located throughout the U.S. each provides instruction in Mac systems, Mac OS X, and Apple’s professional applications. A wide range of certification exams and courses offer innovative learning opportunities for IT and creative professionals, educators, and service technicians—delivered exclusively by Apple Certified Trainers.
The Apple Consultants Network website provides a search tool allowing visitors to locate nearby certified Mac product consultants in the U.S, Canada, and a number of international locations.
The online Apple Store offers free shipping for orders over $50.
The online Apple store offers iTunes gift cards.
Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store.
Apple has packaged back-to-school offers, including some aimed at college students.
MICROSOFT -
Microsoft Corporation is an American public 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. Established on April 4, 1975 to
develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to
dominate the home computer operating system market with MS in the mid-1980s,
followed by the Microsoft Windows line of operating systems.
Microsoft would also come to dominate the office suite market with Microsoft
Office. The company has diversified in recent years into the video game
industry with the Xbox and its successor, the Xbox 360 as well as into
the consumer electronics and digital services market with Zune, MSN and
the Windows Phone OS. The ensuing rise of stock in the company's 1986initial
public offering (IPO) made an estimated four billionaires and 12,000 millionaires
from Microsoft employees. In May 2011, Microsoft Corporation acquired Skype
Communications for $8.5 billion dollars.
ProductThe appearance of their software products is important to the overall marketing
strategy. The software market demands that the software interface is atheistically
pleasing, regardless of the overall functionality. Microsoft has recognized this need
from its customer base and made an effort to improve the look of the graphical user
interface. Decisions about the look and feel of a product are directly related to
needs uncovered from marketing research. Throughout the years the company has
developed features in response to the request of customers. In addition, many
features have been added to improve the customer’s experience with the product.
For example, on their latest release of Vista operating system software, Microsoft
added features that improve the overall appearance of the program. Although this
does not add greater functionality to the software, it grabs the customer’s attention
and increases the desire to purchase the product. Overall, product is the first and in
many cases the most important component of the marketing mix.
Price
Microsoft has adapted a strategy that targets pricing to specific customers. For
example, the Microsoft Office software suite has been targeted to students at a
discounted price. The company has made their product available to students at a
lower price to increase their sales volume and build brand loyalty. Pricing the
product lower allows students access to otherwise expensive product that could be
replaced by less expensive competitors. This pricing decision will ultimately lead
to long term sales because young customers will develop a certain degree of
loyalty and familiarity to the software. Pricing is a critical aspect of the marketing
mix and can have substantial impact on a customer’s purchasing decision.
Place
Microsoft has created a global strategy for product availability. Their software
products can be purchased in a wide variety of locations that include both physical
and virtual locations. Furthermore, the company has contracted with personal
computer manufacturers to exclusively carry their operating system .There has
been a great deal of controversy surrounding this strategy and some say that it
violates antitrust laws. Essentially, a customer that buys a personal computer
cannot avoid the purchase of the Microsoft software that is included as part of the
purchase. In general, greater access to a product will increase sales volume;
however exclusivity can be beneficial and increase the perceived quality of a
product.
Promotion
Microsoft utilizes both advertising and sales techniques to promote their products.
Some of their most visible marketing campaigns have been conducted over the
internet and television. Advertisements over these mediums are primarily targeted
at the end users of the software. The majority of computer users are already
familiar with Microsoft products so much of the advertising is focused on upgrades
and product enhancements. The majority of salesmanship is directed towards
computer manufacturers. By developing relationships with computer
manufacturers Microsoft has been able to sell their product to consumers as part of
a package. This strategy has proved to be very successful and has established the
company as the market leader in the software industry.
CONCLUSION
Microsoft has been at the top of the heap for almost as long as people have used
PCs. They’ve managed to sustain an overwhelming competitive advantage,
even after a decade’s worth of antitrust action and the astonishing transformation
of Apple into a profit-making machine that has built one billion-dollar business
after another while the entire rest of the tech industry is stuck in neutral.
Indeed, the presence of Apple and Google as direct competitors suggests that
maybe Microsoft is overdue to take a tumble.
There is never a shortage of Apple-versus-Microsoft yammering in the
blogosphere, but we haven’t seen much in the way of actual data. Sales figures tell
part of the story, but in opinion the best data comes from analyzing how devices
are being used in the real world. I went off in search of hard numbers, and
we found them at the same source I used earlier this year to measure Windows 7
adoption rates .In early 2008, more than a year after Microsoft launched Windows
Vista, Windows users had emphatically rejected that upgrade. Fewer than 10% of
Windows users had switched, and nearly 5% of all Windows PCs in use were
running Windows versions older than XP. The Windows 7 story is very, very
different. One year after the release of Windows 7, it has made a significant dent in
the Windows user base, and those diehards holding on to pre-XP versions have
mostly surrendered. XP’s share of actual usage has declined more than 20 percent
in two years, and that trend is accelerating. Apple is still gaining on Microsoft,
thanks to iOS-based devices. There’s no doubt that the Mac has been a big
success for Apple over the past couple of years. While Microsoft was
stumbling with Vista, Apple used a very aggressive advertising campaign that
resulted in considerable growth of OS X usage, at least in relative terms. The Net
Market Share stats confirm that OS X’s share of Internet usage rose from 3.45% in
early 2008 to more than 5% last year. As I noted earlier, the Mac’s momentum has
stalled (which might explain Apple’s sudden “Back to the Mac” event last week).
But Apple’s overall share of the Internet continues to go up steadily, thanks to
mobile devices like the iPhone and iPad. Added together, Apple’s one-two punch
of OS X and iOS has been a clear winner. It will be interesting to look at these
figures again in a year.
MARKETING STRATIGIES
From an advertising point of view only they both did what they intended to
do. Apple made Microsoft PC computer seem inferior to there and stated what
made the apple computer better. At the same time they also through in tid-bits
about other products through their major campaign to gain new apple users.
Microsoft intended to save their client base. I think they did that well with
their campaign. That gave reasoning for what makes a PC "better" and they kept it
with what people are used to. Most household grow up using a PC and know where
things are, so they added the fact of easy to use. Having a little girl editing a photo
made it really seem easy. They also address the cost issue (which i feel isn't even
close to accurate) but when you’re looking in the store it is a different that most
see.Apple beats Microsoft by leap and bounds. Apple had creativity in their
campaigns setting the bar for Microsoft to match. Also, Apple was simple, to the
point, and had some comic features in some of them that made them more
memorable. The only reason you remember the PC commercials is because it was
a counter attack because of the Apple commercials.
As long as one company is on the defense they want have the best
marketing strategy. I feel like Microsoft did the best they could, but need to take a
more positive stance on advertising and give some stats to back their computers.
ADVERTISEMENT SPOOFS-BILL GATES & STEVE JOBS
BIBLIOGRAPHY
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
GOOGLE IMAGES
M.H.R.M TEXT BOOK-MICHAEL VAZ
WWW.APPLE.COM
WWW.MICROSOFT.COM
STEVE JOBS VS. BILL GATES
INDEX
MARKETING MIX-INTRODUCTION
THE 4 P’S OF MARKETING MIX
APPLE VS. MICROSOFT RIVALRY
PRODUCTS-APPLE & MICROSOFT
MARKETING MIX- APPLE & MICROSOFT
MARKETING STRATEGIES
BIBLIOGRAPHY
ADVERTISEMENTS
ACKNOWLEDGEMENT
CONCLUSION
ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported
me during the making of this project.
My deepest thanks to Lecturer, Prof. RESHMI ACHYUTHAN, the Guide
of the project for guiding and correcting various documents of mine with attention
and care.
I would also thank my Institution and my faculty members without whom
this project would have been a distant reality. I also extend my heartfelt thanks to
my family and well wishers.