Microsoft used market development to sell the surface tablets by introducing it and selling it to their software or X box buyers. They’ve also introduced it to other tablets or computers buyers from their competitors. Lately, Microsoft has expanded its cloud CRM software across 17 countries, some of which included South America, the Caribbean, Africa, Europe Saudi Arabia, South Africa and the Middle East.
From this I can say that one similarity in their market development projects is that they both have their eyes on the Asian continent and countries within it. For example both the companies have decided to start marketing their products in Saudi Arabia
One difference I can point out in their market expansion is that Microsoft has marketed and is still marketing in more countries than M&S has. And also Microsoft is trying to develop and expand their market globally, taking on a diverse range of countries while M&S seem to be concentrating more on Asia
How two businesses I have investigated have used Product development to grow and expand?
What is product development?
This is when you develop and sell a new product to the customers who are already buying your products
Microsoft recently marketed a new product for their Xbox customers, which was the Kinect. The kinect is a motion controller which enables players to physically get involved in the games they are playing.
Marks and Spencers have also introduced new types of food to the customers they already had in the clothing market. For example, they have opened some new specialists stores recently which is going to be aimed at not only their food customers but their clothing customers also
One similarity in the way they both tackled product development is that they both marketed new products to the customers who were already buying their products
While investigating how both businesses have used product developments to grow, I did not see any differences in the way they did it. Microsoft and Marks and Spencers both marketed new products for their already existing customers and that seemed to be all there was
How two businesses I have investigated have used diversification to grow and expand?
What is diversification?
This is when a business sells new products to new customers or when they simply expand into a new market
Microsoft introduced their smart phones to diversify their market products rather then moving on only with their office products and their operating systems. They were already a global business considering the fact that they many continents around the world. Concerning the Microsoft surface tablet, the business has diversified it by creating the surface pro which was an advanced version of the original product. The Current version of the tablet is Microsoft surface 3
For the last few years, M&S has been diversifying their products and their stores locations across the globe wherever they operate. They have introduced the food market to their customers and are currently planning on improving and develop these new products further. M&S have also diversified in to banking back in 2012
One similarity in the way both businesses have diversified to increase the number of their customers is introducing new product to the customers the customers they had. E.g. Microsoft sold their new surface tablets to their operating software and Microsoft office customers. M&S also marketed their new food products to their clothes customers.
A difference I encountered when investigating the way they both used diversification technique is was that Marks and Spencers unlike Microsoft recently diversified in to banking which is a totally different market to the one they are used. Microsoft diversified into a field where they were familiar to and more comfortable in.
How two businesses I have investigated have used survival strategies to grow and expand?
In 2012, when Microsoft lost their market leadership after being the world’s largest phone producers, they used survival techniques such as cutting more than 10,000 jobs because they were forced to do so because of the lack of sales and the competition with other phone manufactures like Samsung and Apple. They also closed their last factory in Finland that same year due to decreases in demands of the products.
A few years ago M and s was forced to close down 25 of it’s simply food stores and two of its regular stores which lead up to the loss of 780 jobs in the UK. This was due to the price drop in UK Like –for- Like sales. They were also forced to have a two days sale where they cut down the prices of their product by 20 %.
How two businesses I have investigated have used branding to grow and expand?
M and S is the brand name for the products
Microsoft surface “Your potential. Our passion.”
How two businesses I have investigated have used brand building to grow and expand?
Microsoft built their brand according to the business’s needs and expectations. “Your Potential. Our Passion.” They believe giving power to people through technology will help them to understand and unleash their potential. They used this slogan to promote their aims and built brand.
“Making aspirational quality accessible to all” was the positioning used by M&S
Marks and Spencer brand values are the following:
- Family
- Quality
- British
- Tradition
- Good customer services
How two businesses I have investigated have used positioning to grow and expand?
Microsoft built their brand according to the business’s needs and expectations. “Your Potential. Our Passion.” They believe giving power to people through technology will help them to understand and unleash their potential. They used this slogan to promote their aims and built brand
“Making aspirational quality accessible to all” was the positioning used by M&S
Marks and Spencer brand values are the following:
- Family
- Quality
- British
- Tradition
- Good customer services
Both of these brands are easily recognisable to not only targeted customers but all customers because they are really famous global brands.
Yes, there is a difference between these two brands, the M&S brand is about providing quality equally to everyone whereas the Microsoft brand is about empowering people through technology and encourage them bring out the best in them with these technologies.
How two businesses I have investigated have used brand extension to grow and expand?
A few years ago, Microsoft decided to enter other markets by designing and creating phones (windows 8) and tablets (surface) with the same logo on them. These products were part of the brand extension from Microsoft who was primarily in to the operating systems and Microsoft office only.
M&S which started officially as a clothing retailers since the 1880s have gradually grown and expanded. Their most major brand expansion was expanding in the in the food business by starting to produce and sell food products.
These companies did not extend their brands in the same ways and that is because Microsoft has expanded in more technology such as phones whereas M&S expanded in the food business.
Why branding is important in influencing buyer behaviour at the two businesses I have investigated
The brand M and S is really important to the business and for this fact, they use celebrity and famous face to advertise and promote their brand. In one of their previous brand promotion, “the leading ladies “they’ve used the most famous women in Britain for their campaigns.
It is important to Microsoft because of its popularity and the fact that it is easily recognisable by customers and not just in one continent but globally. As a business they are know how people are aware of their brand when purchasing products.
Both the businesses I have investigated have got really strong brands which really gets across to their targeted customers. The similarity between these two brands is that they are both global brands that are doing really well.
The difference between them is that one brand specialises in electronics and technology while the other is more of a retailer in both food and clothing.
How two businesses I have investigated have used relationship marketing to grow and expand?
Relationship marketing
Both the companies that I have investigated have used and currently use relationship marketing in their businesses to attract and keep their customers happy and satisfied.
Microsoft does offers deals for their valuable customer, they have introduced customer relationship management (CRM) which they use to reduce prices and increase profitability by automating business process that satisfies customers pays back their loyalties. They are always promoting long-term relationship with their customers. Microsoft tends to focus more on the relationship marketing as a business strategy.
For their valuable customers, M&S offers special deals and prices reductions on most of their food product. This allows them and their customers to develop stronger relationships and build trust between them.
There was no difference between the methods used by both businesses, the techniques were initially the same and it lead roughly to the same results which the companies expected.
How two businesses I have investigated have used have shown that they value lifetime customers
Life time customers are really important to Microsoft because they guarantee a percentage of the sales. The business can always relay on them to keep the sales up and generate benefits even in hard time. A weakness of it can only occur if the company loses these valuable customers as their commitments cannot always be trusted especially with competitor always looking to get more customers.
Businesses like Microsoft sow their gratitude to their lifetime customers by making them offers on the products they buy. Some companies have loyalty cards with discounts on them, these cards are offered to the most loyal customers in exchange of their loyalty and devotion towards the business.
M&S have shown that they value their lifetime customers by offering them special deals and offers, special discounts that other customers don’t have access to and they also have some loyalty card that provide to customers their devoted customers.
Sources of references
Citizen global annual
Annual report from 2004
2014 annual report
Ref :
Ref:
Ref:
by
serhad1234hotmailcouk (student)
