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 PS OF MARKETING MIX

Product

The product category refers to the marketers ability to make changes to the products 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

Price
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 customers 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.

Place
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.

Promotion
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.

APPLES 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 APPLEApple, 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. 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.

Price

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 thirdparty solutions. Certified on Apple technologies, these providers deliver onsite 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. 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 Apples professional applications. A wide range of certification exams and courses offer innovative learning opportunities for IT and creative professionals, educators, and service techniciansdelivered 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.

Promotion

Apple has packaged back-to-school offers, including some aimed at college students.

MICROSOFTMicrosoft 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.

Product
The 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 customers 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 customers 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 customers 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. Theyve managed to sustain an overwhelming competitive advantage, even after a decades 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 havent 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. XPs 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. Theres 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 Xs share of Internet usage rose from 3.45% in early 2008 to more than 5% last year. As I noted earlier, the Macs momentum has stalled (which might explain Apples sudden Back to the Mac event last week). But Apples overall share of the Internet continues to go up steadily, thanks to mobile devices like the iPhone and iPad. Added together, Apples 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 youre 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 PS 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.