The Launch Of Microsoft XP
The Launch Of Microsoft XP
Microsoft operates through indirect marketing channels, which means that one or more intermediary levels curtail the distribution process from the manufacturer to the consumer. Microsoft typically uses value-added re-sellers and retailers as the medium between the manufacturer and customer. Promoting Windows XP through distribution channels plays an important role in developing and spreading pervasive communications about an offer. Value-added re-sellers take products (such as XP) and customize them to fit certain target markets. Retailers for Microsoft products not only act as a go-between to the customer, but also offer product support and maintenance to the end users.
Since Microsoft uses indirect marketing channels to reach their purchasing public, there is the question of who should be allowed to stock the product. Microsoft, by using hybrid-marketing channels, is able to reach different customer segments simultaneously. Selective distribution insures only reputable dealers, such as Future Shop, Staples, Radio Shack, Office Depot, and others are able to sell the product.
A combination of “push and pull strategies” was used both to encourage the stores to stock the product, and to encourage the purchasing public to demand it consecutively. Microsoft also uses a wide variety of advertising and promotional tools in order to draw the distributors and the public to its product. For Windows XP, the bill for the advertising and promo was in excess of 1 billion dollars. This paid for everything from multi-media advertising to sales promotions to public relations. There were events like concert XP and ‘Who Wants to be a Millionaire’ XP edition, staring Regis Philbin. There was even a cross-promotional piggyback between Madonna and Microsoft.
All of the media hype was intended to inform the end-users (both the home and business operators) of the ease of use and the emphasis of connectivity to the World Wide Web. In fact, the entire campaign was focused around conveying the emotional message of pride, new beginnings, and global unity.
The launching of Windows XP is an effective marketing program that blends all the marketing mix elements into a coordinated program (See Appendix X) aimed at achieving the company’s marketing objectives. Windows XP is the first out of an entire series of products that Microsoft promised to release in order to further support the company and its public image. This is a very ambitious campaign aimed at transforming Microsoft from a traditional software...