Advertising and promotion strategies

Advertising and Promotion

Letter of transmittal to CEO

I hope that the analysis will be helpful and the recommendations insightful for the development of the company during the next fiscal year.

Best regards, 2. Title page

Microsoft's approach to PR and advertising. Developing the brand through anew IMC.

Microsoft has managed to obtain its current position of global leader in its functioning area with the help of well integrated communication campaigns. The attributes that have helped the brand become so appealing for people all around the world are creativity, innovation, the belief in people's dreams and potential, the belief that one can do anything. The corporate social responsibility has been a strong point for the development of the brand for both the advertising and the PR campaigns. The present approach to communication underlines the importance of a coherent overall campaign. A future campaign could nevertheless focus on new attributes of the brand, such as its dynamicity in order to increase the popularity of the company among young people. The media best suited for this purpose are television, the internet and the printed media.

4. Table of contents:

1. Executive summary

2.Table of contents

3. Formal introduction

4. Current Advertising and PR activity

5. Main PR / Advertising approach

6. IMC strategy for Microsoft

6.1. Objectives

6.2. IMC mix

7. IMC components

7.1. Description

7.2. Advantages and disadvantages

7.3. Specific roles

7.4. Media strategy

8. Conclusions and recommendations.

3. Formal introduction

Microsoft is one of the most successful companies in the world. Its success is owned first and foremost to the products which it sells which have become indispensable for the constantly growing number of computer users. Nevertheless, an increased quality of a product can not guarantee the long-term efficacious functioning of a company in the absence of an adequate communication. Communication is needed in order to establish relationships with the potential customers and to maintain the already existing relationships with the actual buyers. Under these circumstances, an integrated communication campaign represents a strategic instrument which can be used in order to touch all the targeted market segments.

4. Part B. Current Advertising and PR activity

Brief background.

Microsoft is known to be a leader at world level in the area of computer software and services. This means that about ninety percent of the computers used in the United States of America and the rest of the world are supported by Microsoft solutions. The concept which is at the basis of the company's identity is represented by innovation. Innovation is the key for development and evolution in all possible areas. Microsoft has so far transmitted an image of itself as an innovator the purpose of which is to make a better life for everybody. The communication campaigns that the company ahs initiated over the internet or in the printed media have transmitted messages according to which Microsoft believes in the potential of people and is doing its best in order to help them achieve it.

Main target markets.

There are several categories which Microsoft considers to be targets for its products and services. One of these targets is represented by the young adults who are interested in using a computer for various purposes, especially for work and self development. The second target is represented by the teenagers and young people who are passionate about computer games. The third target segment which is important for the company under discussion is represented by the business companies who rely on various types of computer software in order to render their functioning more efficient. A fourth market target is represented by adult families which need to buy a one or more computers for their children who need to use them for school and also for other family activities which could be better done with the use of a P.C.

Key segmentation variables.

Communication is a strategic resource for any company, especially for the ones functioning at global level which have the need to achieve performance in different cultural spaces. Such is the case of Microsoft, a company which has so far proved to understand the importance of advertising and Public Relations activities as means of communication with the actual and potential clients. It is nevertheless extremely important to understand who you are sending out a message to, that is the criteria which are used in order to properly segment the market. The main variables that come to mind in the case of Microsoft are age, profession (social status) and the location (a communication campaign made in the U.S.A. will have to differ from the one made in France for example, even if the target is represented by people within the same age range and with a similar social status).

Most likely response hierarchy used by target market.

Taking into consideration the evolution of the Microsoft company so far, while focusing on the market segments which have proven to be the most responsive to the initiated communication campaigns, it could be stated that the target segment with the highest response rate is represented by the young adults who need a personal computer for professional and personal activities. They are the most likely to acquire the largest number of products and services related to the efficient functioning of their P.C. The second market segment that is expected to have a high response quantified in number and value of acquisitions from Microsoft is represented by companies. There is no organization in the world which can function in the area of business (or for that matter, any other area), without the support of computers. The bigger the number of employees, the bigger the demand for Microsoft products. The number of human resources is important, but the complexity of the tasks that need to be accomplished is another factor which can not be ignored. In cases like this, specific software programs and other applications become the most attractive products that Microsoft is to offer. The third position in the hierarchy of response to the Microsoft marketing and communication campaigns is represented by the teenagers and the young people who demonstrate a strong passion for computer games. While there are other companies specialized in the creation of various types of computer games, Microsoft has succeeded to achieve successes in this area as well through its communication campaigns and the concept behind it. Such is the case of the Microsoft Xbox which they managed to sell successfully thanks to the social dimension that was brought to gaming.

5. Main PR / Advertising approach.

Computers are more and more widely spread throughout the world, representing a market which will surely undergo development in the future. All the computers need a user interface and this is where Microsoft comes in. Its purpose was and is to present itself as the main provider in the world, not only of the needed interface but also of the specific software programs that might prove to be helpful. Starting with the communication campaign that was made in 1998, enhancing the slogan already used in 1994, "Where do you want to go?," Microsoft has positioned itself as the one which opens the doors for everyone. The corporate social responsibility was a fundamental component of all the PR and advertising campaigns. The company has thus meant to create and support an identity for itself which allows it to be perceived as the instrument par excellence which helps people achieve their potential and fulfill their dreams (the description of the TV spots dating from 1998 is to be found in the appendix).

The main approach nowadays focuses on the same fundamental concept: Microsoft cares about people and is doing everything in its power to support their efforts for achieving their goals and making their dreams come true. Innovation is a key concept used in the company advertising (see appendix). Microsoft presents itself as the company which provides people with the needed technological support that they need in order to let their creative loose and feel free to invent in a secure environment. Expertise, the possibility to do anything, exploration, inventions, these are the main ideas which are transmitted through the advertising campaigns.

As far as the Public Relations campaigns are concerned, Corporate Social Responsibility is again an essential factor. The company is already using an integrated communication campaign, as the advertising which it pays for in a variety of media supports not just the promotion of the brand itself, but the social campaigns that Microsoft is sustaining as a means of PR. Among this, one can mention the Microsoft Partners in Learning Initiative or the Microsoft Imagine Cup, the Microsoft Emerging Business Initiative. The use of media is intensive, and Microsoft ads are to be found in the specialized printed press (journals, magazines), in papers, but also on the internet (the company website, forums, blogs, etc.) and on the TV. As one can easily notice, the approach is a 360 degrees one.

What are the strengths and weaknesses?

There are numerous strengths that the current approach to advertising and PR presents. The main strength is the coherence of the themes at the basis of the campaigns and their synergistic functioning. Not only are the campaigns coherent, but they also support each other and the essential key concepts, represented by the characteristics of the brand: social awareness and implication, innovation, the ability to do anything, the belief in people and their potential to achieve their dreams. The main weakness that the approach to PR and advertising is the repeated focus on the concepts of innovation and social responsibility without insisting on the dimensions of dynamicity and "coolness."

6. Part C. IMC strategy for organization

The marketing campaigns that the company has created until now and the communication campaigns that have been conceived in order to support the former ones, have helped Microsoft reach its current status in its area of functioning. But being a world leader is not a position that does not need strategic efforts in order to be maintained. Taking this aspect into consideration, one can declare that a new integrated communication campaign is needed for the new fiscal year.

6. 1. Develop 4 objectives, specific, measurable, time framed (SMART)

Any communication campaign needs to have well established objectives if it desires to achieve an efficient coordination of all the actions. Coordination is fundamental for long-term coherence and efficacy. The present communication campaign sets itself four objectives. There are four characteristics that these objectives need to have. They must be specific, easy to be measured, realistic, framed in a certain period of time, and possible to be achieved. Having said all this, the objectives of the future campaign are to increase the awareness of the brand among the target segment represented by young people, to increase the profit by 30% by the end of the fiscal year, to increase the market share by 5% also by the end of the fiscal year and also to improve the attitude of the potential customers towards the brand, diminishing the negative perceptions in the media with 30%.

6.2. IMC mix. Which IMC elements will be used? How will they be integrated in order to achieve a consistent theme?

The future integrated marketing communication campaign will make use of a complex mix of components. Taking into account the size of the company and the fact that it operates at global level, the success of the campaign will depend upon its complexity. Therefore, a broad use of advertising, public relations, publicity and direct marketing will be made. They will be used following the pattern of the campaign that was made in 1998, when the advertising ads promoted and supported not just the brad in itself, but also the PR campaigns that the company had started. The activities will be scheduled beforehand and coordinated. The implementation of the actions will be closely supervised and reports will be made on a weekly basis in order to better monitor the campaigns. The core concepts will be the same for both PR and advertising campaigns.

7. One PR component, one advertising component to promote campaign. Provide rationale for each.

One PR component that is to be used in the future integrated communication campaign is represented by the organization of campaigns for the support of dynamic activities involving young people and teenagers. This campaigns will focus on fun, sports and entertainment, while enhancing the idea of learning (through games or interactive learning, competition, etc.). Three D. projections and special software programs could be used during sports and intellectual competitions involving teenagers and students. Such campaigns would be helpful because they would take the technological dimension of the brand into the area of entertainment, showing how technology makes fun activities even more fun, while allowing young people to learn something at the same time. An advertising component that could be used efficiently within the campaign is represented by TV spots conceived in a highly dynamic manner, always linked to the online resources. The purpose is to render the campaign dynamic and interactive, just like the brand attributes to be transmitted.

7.1.Describe the media to be used.

There are two media to be used for the advertising components. One is represented by the national and cable television. The other one is represented by the internet. One of the targeted segments is represented by teenagers and young people who are known to be big TV consumers. The frequency of the internet use among young people is also very popular.

As far as the PR component of the campaign is concerned, the media which are best suited in order to inform people about it while working for the benefit of the brand image are represented by the printed press (magazines for young people, journals and magazines specialized on technological innovation, but also on social and cultural trends, etc.) and the internet (websites, forums, blogging, mailing).

7.2 the advantages of the media and how they apply to the situation.

The advantages of television as media for the transmission of advertising within the new IMC for Microsoft are represented mainly by its popularity, its capacity to reach an extremely high audience and also its ability to transmit a message in a highly complex form (images, sounds, words, written message) involving the viewer emotionally. Popular channels, such as Mtv can be involved in the campaign. The internet on the other hand is advantageous as means of communication because of the intensity with which is used by young people and its interactive dimension. A special section can be conceived in the Microsoft web site where people can log in and state their opinions or be involved in various games and leisure activities linked to the message that the campaign wishes to transmit.

The advantages of the printed press as means for the promotion of the campaigns to be organized are represented by their capacity to reach audiences who make a less frequent use of the internet as means of information and entertainment. Busy adults are the desired target. Specialized media reaches specialized target audiences and the message will get through more easily. The internet would provide additional coverage, making sure that the target audience is reached from a multiplicity of areas.

7.3 the disadvantages and how they apply

There are also disadvantages regarding the media which have been chosen for the future IMC campaign. The main disadvantage of the television is represented by its high costs. As far as the internet is concerned, it presents on the one hand the risk of being too aggressive. On the other hand, trying to avoid being aggressive, it might result into not being present enough. All in all it could be stated that the internet is challenging medium to be managed. The printed press has the disadvantage of reaching highly specialized audiences. Reaching a vast audience implies using a large number of magazines and journals and this too, could rove extremely costly.

7.4 the specific role/purpose of the media within overall IMC

The role of television is to reach a large audience. In addition, taking into consideration the influence of the medium upon the reception and interpretation of the message, television is meant to enhance the awareness of the brand among young people while making it more popular (through the focus to its dynamic, cool side). The printed press is meant to give increased credibility to the campaigns while reaching its specific target. The purpose of the internet is to enhance the newly presented attributes, increasing popularity and awareness. All the media which have been selected are meant to increase sales and thus, market share.

7.5. Describe media strategy. What will it say, how, what it will look like. Discuss how the audience will be measured.

The media strategy that will be used will say that Microsoft, while being an innovator and an investor in technology, is nevertheless a young spirit, dynamic and playful. The campaign will transmit the idea that technology can be used to improve even entertaining activities and that games and leisure activities are nevertheless a means of self development, especially if Microsoft is involved. The ads on TV are to be highly colorful and dynamic, using testimonials from normal people as well as people who have achieved their dreams in various areas (young people) ranging from science to sports and arts. The printed ads are to be conceived in the same manner. The web site of the company will be endowed with a new section dedicated to the new campaign. The section is to be interactive and try to involve the users as much as possible. The audience will be measured with the help of a special software in the case of the internet and with the aid of specific audience measures in the case of the television networks and the printed media.

8. Conclusions and recommendations based on conclusions and summary of recommendations.

Microsoft has done a professional job with its previous marketing and communication campaigns. It has focused on its corporate social responsibility and on the concept of innovation. The former campaigns have used integrated themes and a multiplicity of media which were very well coordinated. The future communication campaign is meant to underline other characteristics of the brand, making it more popular among the target segment represented by young people. The recommendation concerns the coordination and the synchronization of the PR and advertising actions. A further recommendation regards the monitoring of the actions which is fundamental for the coherence of the entire campaign.

9.List of references

2007, Microsoft, Brand Profile, Superbrands UK

2008, Microsoft [online], available at http://www.microsoft.com

2005, Microsoft Xbox- it's good to play together, New York American marketing Association, EFFIE Awards

Buehrer T., Ward C., 1999, Creating an online advertising effectiveness program for Microsoft Advertising, Research Foundation, Towards Validation - Online Research

Buehrer T., Ward C., 1999, Measuring the impact of online advertising leanings from Microsoft online's as effectiveness research program, Advertising Research Foundation, Marketing Accountability, June 1999,

Crockett, David, 2000, Microsoft- a model for the network organization?, ESOMAR, Impact of Networking, Vienna, pp.159/175

Griffiths, J., 2002, Finding your level in Integrated Communications

Laurent, F., 1997, Integrated advertising research for successful advertising development

ESOMAR, Integrated Communications, Paris

Schnakenberg R., 2000, Microsoft Corporation: Start me up campaign, Encyclopedia of Major Marketing Campaigns, Gale, Volume 1, pp.1088-1095

Stanfel R., 2007, Microsoft Corp.: Where do you want to go today? Campaign, Encyclopedia of Major Marketing Campaigns, Gale, Volume 2, pp.1001-1007

Appendix:

Corporate Brand Advertising Campaign

Our mission is to help people reach their potential. That's why we're constantly innovating software designed to help you learn, work, and live more fully and productively. it's also why we donate software, hardware, funding, and training to programs all over the world dedicated to helping everyone reach their potential. Students, teachers, small businesses, the physically disabled, and the economically disadvantaged -- "when they all benefit, we all benefit.

1. We see a place where ideas can grow.

Microsoft Innovation Centers are places where entrepreneurs, students, and inventors can go to have their ideas supported and nurtured. Microsoft starts Innovation Centers all over the world so people and their dreams can reach their potential. Find out more at microsoft.com/potential.

Your Potential. Our Passion.™

2. We see no dead ends.

Today, computer skills are essential to success. Microsoft Unlimited Potential grants are helping people in communities everywhere increase their digital literacy, giving them the tools they need to open new avenues to opportunity and reach their potential. Find out more at microsoft.com/potential.

Your Potential. Our Passion.™

3. We see one doctor, many experts.

Microsoft is partnering with industry leaders to help develop the health care system of the future. By creating a seamless national network that provides a more efficient flow of medical information, health care providers are better informed, patients better served. Find out more at microsoft.com/potential.

Your Potential. Our Passion.™

4. We see kids learning, exploring, protected.

Their first experiences with the Internet should open doors for kids, showing them a world full of possibilities. Microsoft is committed to keeping their experiences safer through constant advances in parental controls and global partnerships. Find out more at microsoft.com/potential.

Your Potential. Our Passion.™

5. We see a new company, new jobs, new potential.

The Microsoft Emerging Business Initiative helps hundreds of software companies throughout the U.S. get started, grow, and thrive. We provide technology, training, funding, and guidance. Innovation is fostered, jobs are created, and the economy grows. Find out more at microsoft.com/potential.

Your Potential. Our Passion.™

6. We see new skills, tomorrow's inventions.

The Microsoft Partners in Learning Initiative provides software and teacher training to schools throughout the U.S. it's helped train over 150,000 teachers so far, giving them the tools and skills they need to help their students reach their potential. Find out more at microsoft.com/potential.

Your Potential. Our Passion

7. We see computing made safer and more secure.

Microsoft is constantly working to make our products more secure. And by partnering with industry, governments, and law enforcement to help protect against security threats and track down the criminals responsible, we're helping to keep business up and running. Find out more at microsoft.com/potential.

Your Potential. Our Passion.™