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Marketing mix and segmentation of Sony.

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MARKETING MIX AND SEGMENTATION OF SONY In marketing two of the most important things are the marketing segmentation and the marketing- mix. Even if you come up with a "gee-whiz" product, if you do not use the right marketing ingredients the result can be devastating. Nowadays, Sony is the one of the most successfully growing electronic companies in the world but it cannot be attributed just to the technology and the innovation. Sony's marketing segmentation consists of four different lines: electronics (camera, computer, camcorder, TV, Walkman, MP3 players), Sony Music and Sony Pictures, digital entertainment (Play Station) and mobile phone (SonyEricsson). One of the biggest steps in Sony's life was when the Sony Computer Entertainment sector was set up with the Play Station 1 (PS1) concept, and later developed with the Play Station 2 (PS2) concept. By the mid-1990s, the whole company was in a deep funk. Its profits had sunk from a high of $1,3 billion in 1992 to a loss of $3,3 billion in 1995. The solution was the Play Station division in 1993. Less than 5-years later, the Play station business had grown to achieve an incredible 40% of Sony's $3 billion in operating profits and nowadays, it brings nearly half of the company's profits and Sony owns the biggest share from this market in the world. So how was this success compromised? Task 1 SEGMENTATION Sony endeavours to understand its customers as much as possible. ...read more.


Loyalty- The customers feel strong loyalty to the Play Station brand. First of all, it comes from the belief that the quality of the product and service satisfy the customers on a high level. Secondly, there is a correlation between the two consoles. Compatibility-The first generation of customers who grew up on PS1 prefer to buy PS2 because they can play with their old games on the new machine. This fact and the brand loyalty ensure that in the long run people become medium or even heavy users. Task 2 (A) MARKETING- MIX The marketing- mix is the one of the most important things in marketing. The hardest thing is to find out the best mix from the existing ingredients. Product: Brand name- Sony always tries to persuade consumers that its brand offers the best quality for them. The company's goal is to build a strong brand name to capture consumer loyalty and preference. The Sony name is synonymous with quality and value, while the Play Station name suggests the concept but it is clearly identified separately from the main brand. Hardware- The company spends huge amounts on research and development and is the first to produce products. When PS2 was first launched, Sony had made a machine, which was leading edge its features included a 128-bit processor called the "Emotion Engine" which was three times faster than a Pentium chip of the same vintage. ...read more.


It was the first to combine a 32-bit processor, a graphics chip, and a decompression engine on the same piece of silicon, otherwise known as a system-on-a-chip. After this big step the entertainment project was launched. The whole concept was supported with product development and marketing knowledge on the highest level. SONY COMPUTER ENTERTAINMENT GROWTH IN REVENUES AND OPERATING PROFITS AS PERCENTAGE OF CORPORATE PROFITS, 1995-1999 (IN BILLIONS OF YEN) 95 96 97 98 99 Sony Computer 35 201 408 700 760 Entertainment Revenue Sony Computer n/a (9) 57 117 137 Entertainment Operating Income Sony Corporate (167) 235 370 520 339 Operating Income (Gary Hamel- Leading the revolution (2000), p-172) Sony has created a different world. The "Play Station" and the "See the world of Sony" slogans perfectly reflect how Sony wants people to enjoy themselves and feel something special: get an experience, win in their new life and more than that. In the business the "consumer is the king" the golden rule is still the most important moment but in Sony's marketing strategy it has been transformed. Akia Morito: "Our goal is to lead costumers where they want to go before they know where they want to go." This is the real power of marketing, when a company like Sony owns the intellectual property to lead their customers, hence the whole process is more comprehensible and predictable, that is why the strategy is more easily controlled, defended against rivals and monitored. Reference: Bloomberg Gary Hamel (2000) Leading the revolution, Harvard Business School Press Kotler Armstrong (2004) Principles of Marketing (10th edition) www.bbc.co.uk www.guardians.co.uk www.index.hu www.playstation.com www.sony.hu www.sony.com www.sonyericsson.com BA (Hons) Marketing -1- ...read more.

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The writer uses a sensible structure but does not always put all the relevant points in the right place. Too many unsubstantiated sweeping statementsare used, which I would not expect from a degree level essay. There are however, many useful and good points made.

Marked by teacher Dennis Salter 01/05/2013

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