Microsoft Marketing Strategy

Since the appointment of Satya Nadella as CEO, Microsoft marketing strategy has changed to become less ‘hostile’ abandoning kinds of advertising that ‘attacked’ competitors in a direct manner. For example, a marketing campaign known as ‘Scroogled!’ launched in 2012 informed about Google’s decision to display paid advertisements to search results related to shopping. ‘Scroogled’ was launched to ensure the shift of some Google users to use Microsoft’s Bing search engine, but Nadella stopped this and some other similar campaigns as an attempt to improve the image of the company.[1]

Microsoft marketing strategy

Microsoft’s ‘Scroogled’ Marketing campaign

Microsoft segmentation targeting and positioning focuses on specific group among the population that value efficiency speed of operations and advanced features and capabilities of technological products and services. Accordingly, Microsoft marketing mix (7ps of marketing) focuses on product element to a greater extent compared to other elements. Microsoft marketing communications mix also uses advertising, sales promotion, events and experiences, public relations and direct marketing to transmit the marketing message to the target customer service.

Microsoft sales and marketing expenses amounted to USD    14,697, USD  15,713 and USD  15,811 for the fiscal years of 2016, 2015 and 2014 respectively .  During the fiscal year 2016 the sales and marketing expenses decreased USD1.0 billion or 6% compared to the previous period due to a reduction in phone expenses and a favourable foreign currency impact of approximately 2%.[1]

Microsoft Corporation Report contains a full analysis of Microsoft marketing strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Microsoft. Moreover, the report contains analyses of Microsoft leadership, organizational structure and organizational culture. The report also comprises discussions of Microsoft business strategy and addresses issues of corporate social responsibility.

Microsoft Corporation Report

[1] Hildenbrand, J. (2014) Windows Central, Available at: http://www.windowscentral.com/microsoft-s-scroogled-campaign-may-finally-be-coming-to-an-end

[2] Annual Report (2016) Microsoft Corporation