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Transcript of Microsoft
Colleen Russell - A42471319
Nick Fonseca - A43244806
Kyle Lacey - A43078844
John Kure - A43626970
Moriah Obiya - A42205997 Microsoft Satisfaction and Loyalty Microsoft utilizes the following to understand and further enhance their customer satisfaction and loyalty:
- Microsoft Customer and Partner Satisfaction Survey
- Enterprise Customer Satisfaction Survey
- Usability studies
- Online feedback forms
- Research forms Microsoft currently has a favorable American Customer Satisfaction Index rating of 75 Microsoft uses e-commerce to connect with their customers in several ways. Some examples inlude:
The Microsoft Store
Bing search engine
Internet Explorer web browser
So.cl E-Commerce So.cl is a new social media website founded by Microsoft.
Made primarily for students.
Helps people collect research and share it with their colleagues.
Made to be different from other social media websites. So.cl So.cl is the first social media website of its kind and could revolutionize the way people study.
Bing is fairly new but is the best search engine on the internet.
Microsoft buys the exclusive rights to several games meaning that the games are only able to be sold for Xbox 360. Competitive Advantage Microsoft has their own cloud computing system and uses it regularly.
They sell the rights to use their cloud to both private and public businesses.
Microsoft will help companies install a cloud computing system for their business. This helps the company enhance their operations. Cloud Computing Microsoft has rivals in all of their areas of business:
Compete with Apple for computer operating systems.
Compete with Google in both search engines and internet browsers.
Compete with Apple and several others for phones and tablets.
Compete with Nintendo and Sony for gaming systems.
Compete with Salesforce and Amazon for cloud computing. Rivalry Microsoft essentially dominates the computer operating system for PCs with their Windows operating system. Potential entrants in this field could be VMware and Oracle.
Salesforce and Amazon are also potential entrants in the cloud computing field. Potential Entrants Some of Microsoft's top suppliers are:
Hyatt Hotels Corp
Chinasoft Suppliers Intermediaries Microsoft Certificate services
Microsoft Windows Certificates MMC Microsoft has a wide range of buyers. Businesses of all sizes are one of the main consumers of Microsoft's services. The world is modernizing very quickly, so companies rely on Microsoft to keep innovating their products so that the company can keep up with the rest of the world. Microsoft also sells their products to normal, everyday consumers. Buyers Software: Apple, VMware, Oracle
Phones: Iphone, Droid phones
Gaming Systems: Wii, PS3
Cloud Computing: Amazon, Salesforce. Substitutes Key Product
Psychological Factors Microsoft Office Suite Perception Attitude Microsoft Office is essentially the universal system for documents, especially Word, Excel, and Powerpoint. Students are taught in school using these products. Selective comprehension aids in this because consumers are often introduced to these products without making a choice by themselves, however, this often ends with a strong message to consumers about the ease and usefulness of the product Regarding attitudes, consumers often have a positive cognitive attitude because many have a lot of knowledge of how to use Office Suite and the usefulness of the product. This often leads to a positive behavioral attitude. These aspects influence consumers to continue buying and using new versions. New Idea to Influence Consumer Behavior A new idea regarding the Microsoft Office Suite products would be to incorporate a simplified ability for cloud capabilities. This would allow users to save documents in their "cloud" space through simply clicking on an easy access button on the ribbon. This would positively influence perceptions because current users would see the continuous improvements that loyal users desire. This would also positively influence attitudes because users most likely already have a strong cognitive attitude and the new, easy to use, feature would appeal to that attitude. They now can access their "cloud" space documents from anywhere easily and can also serve as a form of backing up documents. Marketing Information and Research Customer Satisfaction and Loyalty Plan
1. One area that would be helpful for Microsoft to look at would be which of its competitors are taking the most customers, then determine which products it needs to improve to close that gap.
2. Another area Microsoft should research is what target markets is it struggling to attract, then adapt their strategies to more effectively attract these markets.
3. A third area that should be addressed is what products excel in what areas, then base their marketing strategy for that area around these products.
4. A fourth area that would be extremely beneficial to the company would be finding out what areas have the most retail spending potential and would be more likely to buy their products. Customer Intimacy Dominate Strategy Microsoft has eight specific business units where the main focus is customer service. The company is generally run with the idea of a "commitment to their customers." They want to be number one in customer service. Microsoft's new customer satisfaction and loyalty plan revolves around two major areas: continued customer feedback and product loyalty incentives. Since Microsoft is a company that revolves around software, consumers should receive software incentives to be loyal customers. For example, if a customer has a track record of purchasing a version of Windows or an Xbox, then when a new version of that product is released they will receive a discount if they choose to buy it. On top of that, Microsoft will continue to take customer feedback very seriously to help improve many aspects of the business. Not only will Microsoft take ideas or complaints seriously, but Microsoft will encourage customers to give feedback and prove to them we listen and care about what they have to say. Differentiation:
Important to Microsoft's dominate strategy because in order to meet customer needs, Microsoft has to create a software system that could be widely used and develop new products that provide specifications and features that other companies do not. Target Market Segments Microsoft will concentrate on targeting the following market segments:
1. Adolescents and Students
2. Small Businesses
3. Young Professionals Low Cost:
With lower costs, products are more desirable. Customers feel a sense of intimacy with the company when their needs are met with the differentiated products One specific area Microsoft should look at is retail spending potential (Specific to Michigan).
Problem Definition: Specific areas in Michigan (and in the United States) have more spending potential than others. Concentrating too much time, money and effort into areas with low retail spending potentials can be a bottleneck for the company.
Exploratory Research Design: Microsoft would be better off if they focused their attention on areas with the highest retail spending potential. This is not to say that they should ignore an area just because they have less excess money, but it would be a good strategy to focus efforts in wealthier areas. Microsoft would assume some of the wealthier areas in Michigan are West Bloomfield and Birmingham compared to cities such as Dearborn, Westland, and Livonia, where very little spending potential exists.
Quantitative Research Design: Our hypothesis was fairly accurate. The two counties in Michigan with the most retail spending potential are Oakland and Livingston county. Cities in these counties include West Bloomfield, Birmingham, and Brighton. Washtenaw county with cities like Ann Arbor and Saline is a close second. On the opposite side of the spectrum, cities like Holt and Romulus from Ingham and Wayne county have some of the lowest spending potential on retail. (This is accurate information taken from ArcGIS.com) Marketing Research Process Adolescents and Students A commercial would concentrate on two of the more social products Microsoft offers: Xbox and Skype. The commercial would feature the ability to Skype over Xbox Live to enhance the already growing social aspects of Microsoft. Small Businesses Porter's Five Forces A good commercial message toward small businesses would revolve around simplicity. The two main features of the commercial or ad would be Windows Server and Microsoft Office. Young Professionals A good commercial for young professionals would feature young adults using Microsoft software then those same young adults in nightlife atmospheres using Windows Phone, Skype, Xbox, and Bing. Marketing Variables Microsoft's marketing variables would concentrate on two major variables: location of small businesses and location of young adults. Knowing where most small businesses are located will help market Windows Server and Windows Office more effectively while knowing where most young adults and teenagers are located will help market the more social Microsoft products. Specific Market Research Area Microsoft's Supply Chain Information Technology Supplier Sourcing ex: Accenture Development & Testing Logistics ex: Inbound Logistics Microsoft Businesses
ex: IBM Developers
ex: Dell Distributors
ex: Best Buy Downstream Upstream Consumers Marketing Strategy Microsoft has a differentiated marketing strategy. They have a wide variety of products that they differentiate from competitors. For example, Windows is very different from Mac operating systems, Bing markets their differences from Google, and XBox has differing features and capabailities than PS3. Sources www. microsoft.com/about/en/us/default.aspx Video Image Sources:
http://www.businessinsider.com/microsoft-unveils-new-logoheres-a-history-of-the-designs-evolution-2012-8?op=1http://about.skype.com/media-library/logos.htmlhttp://www.xblafans.com/internet-explorer-9-rumored-to-arrive-on-kinect-48030.htmlhttp://xbox.about.com/od/xbox2/ss/xbox360pics_5.htmhttp://ismashphone.com/2012/07/how-to-run-microsoft-office-for-free-on-your-mac-with-onlive-and-bluestacks.htmlhttp://www.techshout.com/software/2010/22/microsoft-windows-phone-7-two-months-in-the-open/http://www.datacenterdynamics.com/fr/focus/archive/2012/09/hp-integrates-cloud-products-microsoft-software Other sources listed in living case analysis booklets Core Product Focus Product Development Market Development Diversification Microsoft focuses on product development as their product planning and innovation strategy. They consistently work within their existing market segments and improve their products. They also focus on introducing new versions of their core products like Xbox, Windows, and Internet Explorer. They develop their new products through feedback from the consumers New Product
Development New product development is key in the technology industry because it is a fast changing market. Developing new products drives Microsoft to continue to be a leading software company. Continuous
Innovation A new continuous innovation in Microsoft is Internet Explorer 8. This is the 8th version, but features many new improvements. Dynamically
Innovation Windows 8 is an example of dynamically continuous innovation. This version is an improvement of the many versions of Windows, however, there are many new features such as the use of applications that users will require users to adapt and learn how to use them. Discontinuous
Innovation Discontinuous innovation occurs at Microsoft through the creation of the Surface tablet. This is a brand new idea that Microsoft has developed and Surface is the first type of tablet to be created by Microsoft. Product Life Cycle Introduction Growth Maturity Decline DOLLARS SALES PROFIT Surface
Vista Types of Mass Communication Microsoft does a wonderful job os incorporating sales promotion, Advertising and public relations as forms of mass communication. An example of sales promotion being utilized is when Microsoft offers bundle deals when purchasing larger items like an xbox 360. Often if you purchase one of these it will come with a couple games, an xbox kinect or maybe an extra controller as added incentive for purchase. An example of advertising is all the TV commercials they have for their windows phone, tablet and even laptops. They also advertise using their own website and online ads to widen their scope of advertising. An example of public relations is press releases about new products or big changes in the company. Recently, in the news, there was a story about Steve Ballmer, Microsoft's CEO, showcasing a handful of microsoft's new products (windows phone, tablet, etc.) across different countries in Europe and Asia. Media Options Forms of media such as newspapers, television, radio, magazines and more are all important to any company attempting to spread awareness about their products. Over time the level of importance for each individual method of communication has changed because of changes in technology and other reasons. Newspapers have become a little less important with the internet becoming such a dominant channel, but they still hold a decent amount of importance as many people still read the newspaper daily. Advertising on television may be the most important of all channels as millions and millions of people watch TV and commercials is a primary form of advertising. Things like the internet and social media are becoming more and more prevalent in in today's very technologically savvy society. Things like radio and outdoor ads are becoming less important because not too many people still listen to the radio nowadays and outdoor ads just are not as effective as things like TV and internet. Personal Selling Microsoft utilizes both direct and missionary sales in a very effective matter. Microsoft has direct field and technical sales people. Field representatives you may find at stores like Best Buy or anyone of Microsoft's stores. These reps meet face to face with customers and try to pair them with the correct equipment that will meet their needs. Technical reps are a little bit more experienced with specific products that need to be explained to customers. Technical sales reps tend to sell things like Microsoft OS to companies that want to have a uniform operating system throughout the organization. Inside sales support is one form of missionary sales that Microsoft utilizes. Microsoft has an entire page dedicated to support and advising on their website. They have sales advisors that can be reached over the phone or via email. Target Market Segment: Young Adults Competition Apple
Many others Attributes Buyers
Look For: Reliability-Want their products to work when they need them
Usefulness- Want their products to do what they are supposed to do
Innovation-Want their products to keep up with the competitions products
Adaptfulness-Want innovation in their products, but not too much where they get lost Innovation Reliability Apple Microsoft Amazon Sony Nintendo Fundamental Way to Position a Product: First, we must determine our target market. Then the company can develop promotions and advertisements to help shape their customers perceptions to what they want it to be. A company could also show their customers what goods and services they provide and how they exceed those of their competitors Ways to Promote our Products: Price
Region/Country Integrated Marketing Communication Objectives: First of all, Microsoft provides necessary information to its customers. Customers feel the need to be informed about a product before they spend their time and money to actually buy the product. Informing their customers helps Microsoft create demand for their products. They also create demand by producing advertisements and promotions to create recognition for their products. These also allow Microsoft to show that they provide the highest quality of goods of anyone in their industry. Microsoft's brand name also helps them create value. All of these also allow Microsoft to communicate it's product's uniqueness. Microsoft has competitors in many of it's product lines; but certain fields, such as Skype, are completely unique. Microsoft markets it's brand to make sure that consumers know that they provide unique products. All of these factors help Microsoft close the sale and, in turn, build relationships with their customers. This is essential for a business to be profitable and Microsoft has succeeded in doing this. Internet Explorer 10 Identifying Goods & Services Surface Tablet Windows 8 Almost Pure Services - PC hardware - Xbox 360
- Surface Tablet - Windows Phone Microsoft's Brand Equity Goods With Services Half Goods,Half Services Services With Goods - Xbox Live
- Internet Explorer
- Windows Server Almost Pure Services - Cloud Computing
- B2B Consulting
- Technical Support Brand Awareness
Competitive Advantage Many consumers are very aware of Microsoft and their products. Their brand name influences consumers to use and like their products Microsoft users are often loyal to their software line and Windows. They also have been making improvements to maintain loyal consumers Microsoft makes well known high quality products that offer what consumers need. They are essentially one of two computer operating systems which makes them unique Associating products like Xbox, Skype, and Windows with Microsoft influences people to purchase products and new lines like Surface Tablet Since Microsoft led the way, they have large amounts of control Consumer Evaluation of Goods and Services Marketing Strategy: Experience Qualities Microsoft mainly consists of products that are high in experience qualities. This is because most of Microsoft's products fall in goods with services, half goods and half services, and services with goods. Some of the major products that fall in the category of experience qualities are Skype, Xbox Live, Internet Explorer, Bing, and Windows Phone. These fall in experience qualities because the consumer has to use the products before making an accurate judgement. Microsoft suffers from trademark piracy: One of the top ten most pirated brands
Galeburg firm located in rural area ofIllinois was guilty of selling a computer loaded with pirated Microsoft Office XP pro to a microsoft investigator
Recently announced the company has filed 21 federal lawsuits against alleged pirated software Brand Strategy Branding is very important to the company. Many believe Micorsoft values its branding strategy above other marketing concepts
In comparison to competitors, Microsoft is way more diverse. For example the competing company Apple has a more direct audience and has little variation Roles and Responsibility of Salespeople What is the most common product you currently sell? How often to you sell to individual consumers? Business and Organizations? What allows Microsoft salespeople to be so effective? Organizational Benefits from Microsoft's brand equity Microsoft is an industry leader and offers differential products essential to corporate America. Microsoft's leadership role and competitive edge has made this company a staple in all markets. Consumers recognize this brand and are comfortable with it since it has always been around.
Using brand equity and staying innovative will secure Microsoft's competitive advantage in years to come
Consumers are comfortable with this brand and it shows. For example every computer that is not an Apple comes preloaded with windows and other Microsoft programs Possible Marketing Strategy Bundle stragegy: This strategy allows consumers to purchase several products in one sale package. Microsoft could sell different software as a package to attract new sales and to sell products that may have otherwise not sold individually Windows 8 Often sell new versions of software to consumers. Varies on case to case basis
Often sell subscriptions to organizations and volume licenses where employees can purchase personal usage at a discount They are the front liners for the company who are trained to sell the products and provide information. They focus on finding out the customer's specific needs to help sell the products based on each individual case Ryan Customer Service Sales Microsoft (248)-827-2000