Principles of Marketing : Marketing Mix Product, Price, Place and Promotion

PRINCIPLES OF MARKETING
The Marketing Mix Product, Price, Place and Promotion (4Ps).
A case of PlayStation 5 and Nintendo Switch game consoles.
Table of contents Page
no.
1. Executive Summary 3
2. Introduction 3
2. STP Strategic Approach 3,4
3. Findings 4
4. Target Market 4
5. Product 4,5
6. Price 5,6
7. Place 6
8. Promotion 6
9. Recommendation 7
10. Conclusion 7
11. References 8
12. Appendixes 9,10

Executive Summary
The report presents a detailed account of the differences and similarities of Sony’s
PlayStation 5 (PS5) and Nintendo Switch gaming consoles based on the 4Ps
marketing mix strategy. The PS5 now has a 52 percent market share, with Nintendo
and X boxer gaming consoles as its main competitors. Both PS5 and Nintendo tend
to have similar promotion and distribution strategies. However, they significantly
differ in the features and pricing of their product. Nintendo should develop an
exclusively new product with modern and advanced features to retain a better
market share. On the other hand, Sony should invest more in advertisement ad
promotion so that it maintains its competitive advantage and market share.
Introduction
Game consoles are inevitable for the majority of us today. However, to a significant
extent, they are expensive and every game console provides a unique experience

whether in terms of design, graphical power or availability of the game. According to
DiDomenico, (2021), the Play Station 5 (PS5) is primarily a representation of the
next generation gaming pinnacle, offering solid 4K@60fps gameplay altogether with
fast load lighting times with the inclusion of custom-designed SSD. It has an
unmatched dual sense controller with an extravagant design. Presently PS5
occupies 52% of the market share. On the other hand, Nintendo Switch (OLED) has
a limited boost towards graphical power as perceived by a majority of consumers.
However, it does have a bigger Tin OLED display for a more improved hand-held
gaming experience with deeper blacks and vivid colours. Nevertheless, Nintendo
presents a relatively large OLED display, smaller bezels as well as better battery life.
It is also less expensive and does not boost graphic power as compared to the PS5
console. The report compares and contrasts Nintendo Switch and PS5 gaming
consoles.
STP Strategic Approach
The STP Model (segmentation, targeting, positioning) it's a three-step process that
allows businesses to create a focused and actionable marketing strategy. It allows
more effectively position a product or service to attract distinct categories of
customers. Sony and Nintendo's primary segmentation approach is demographic
segmentation. Gamers are those between the ages of 15 and 40. People that are
interested in gaming are the major target market for the Nintendo and PS5 game
systems. Nintendo has a different positioning technique than Sony. Nintendo's
gaming systems are marketed as being suitable for both casual and serious gamers.
Findings
Target Market

The target market for Nintendo Switch is relatively straightforward. They target
individuals who are between the ages of 15-30 years and those who are mostly
interested in playing video games at certain places. The prospective groups include
men, women, educated families together with cohorts who are enthusiasts and
interested in playing videogames and at most times they have their presence online.
The Sony PS5 target market is primarily males within limited females aged between
17 and 40 years. Typically, the major target markets are males who have just exited
the stages of serving under gatekeepers and appear to have more freedom as
compared to teenagers or children. Nevertheless, it is worth mentioning that both
consoles consumer segments primarily constitute the middle and the upper-class
members (Arruda Filho & Gammarano, 2018).
Product
According to Levitt’s (1980) on total product concept, every product has three
primary layers: Core layer prescribing what the buyer is really buying. Actual layer,
turning the core benefit into the actual features, quality styling, packaging and brand
name of the product. Lastly, it is the augmented layer which provides additional
consumer benefits and services. The underlying total product concept can be
summarised as showing in appendix 1. Nintendo Switch console and PS5 console
also have the three layers as pointed by Levitt. Considering their branding, design
and the physical appearance, both products are used by gamers. They core
relevance is confined their benefits to gamers who prefer PS5 to Nintendo
regardless of prices while the underlying correlation and needs to be fulfil sets on the
business limits and provide the most experience to gamers. The Sony PS5
manufactures home consoles for children and adults to play video games. PS5
provides an SSD drive with 4K resolution with 120fps with faster performance for
smooth high-quality video. Consequently, it is compatible with some of the initial
versions of PlayStation consoles including PS4, 3, among others. Nintendo Switch
presents a great experience in gaming with relatively high levels of graphics and a
faster frame rate. According to Rand, Kizony and Weiss (2018), Nintendo is quite
popular with their underlying dual handled screens systems for virtual reality and
augmented games. Typically, Nintendo switch is much smaller version of the console

thus giving room for gamers to have higher mobility and transferability. Nintendo
Switch might be used at any place, enables the user to maintain personal accounts
as well as the application supports a wider range of games in the management of
multiplayer settings. Based on the PS5 and Nintendo Switch products we can
incorporate Aaker brand personality model to understand them. Both brands
represent everything about Aaker’s brand personality of ‘Ruggedness’. Their
products are powerful, durable and high-quality.
Price
PlayStation 5 console presents a premium price towards their console based on the
prevailing competition in the market. The video gaming industry is becoming highly
interactive with top competitors including Sony, Nintendo and Microsoft being the
giants in the market. The cost of PS5 is presented in appendix 2 and to some extend
varies based on the selected model and place (Di Domenico et al., 2021). Typically,
the pricing plan provides considerable benefits as far as the PS5 gaming console is
concerned. On the other hand, based on data by Stead and Hastings (2018) the cost
of the new Nintendo Switch is approximately £299 -£349 which is comparatively far
much cheaper as than PS5. When compared to its primary competitor Sony, the
Nintendo Switch has been the most popular among customers in the majority of
markets over the last three years as a consequence of delivering competitive prices
and creating the most exclusive games. Nintendo has been notable in making use of
differential pricing strategy for enhancing the ultimate profit of its gaming console. It
is evident that the price of PS5 is far much higher as compared to the Nintendo
Switch console. Although, it is also in recent years that the majority of gamers are
buying PS5. However, in the past, most consumers have been going for Nintendo
consoles due to their lower prices. Nintendo price is not fixed just as in the case of
PS5 and varies primarily based on the location and country. For instance, selling
them in some countries often calls for additional tax for the company thus attracting
higher prices.
Place

The availability of Nintendo Switch gaming consoles is more prevalent in Russia,
India, the USA, UK, China, among many other places (Datta, Ailawadi & Van
Heerde, 2017). Sony's global market includes approximately 120 nations, including
India, the United States, Oceania, and South Korea. PS5 is widely available in both
online and physical retailers throughout the world similar to Nintendo Switch. Sony
also maintains a number of service centres throughout the world for customers who
are having problems with the PS5 system. Sony also offers an online training
platform for those who acquire the game system through e-commerce, which is far
less expensive than buying it in a shop.
Promotion
To reach its target customers, Sony promotes its PS5 console through Game
Expositions, YouTube, shopping malls, E3 events in conjunction with other online
shopping websites and social media. PS5 console is gaining popularity as a result of
its massive promotion strategies through media such as TV stations as well as
providing tools online for training as well as provision of demo games for new games
launched. Considering Nintendo Switch, as a result of its popular exclusive features
and relatively lower prices, most gamers are also purchasing it. Nintendo uses
advanced technology for promoting the product. Moreover, various shopping malls
have been not able to offer demos of Nintendo gaming consoles in which consumers
are allowed to play demo games in gift centres. Nintendo brand has gained
popularity since its launch from 2017 to 2019 outselling PS5 and even the Xbox
series after being launched. However, PS5 is presently leading in the market. Both
Nintendo Switch and PS5 have an online community where games are sold to them
at discounted prices for Nintendo Switch and for PS5 Plus members can gain free
accessibility to play new demo games and two old games.
Recommendation
The following recommendation could be appealing for both brands.

 PlayStation 5 might leverage and increase its profits by allowing consumers to
pay for its products based on their capabilities (cost-effectiveness).
 To acquire or retail a better market share, Nintendo should come up with a
new console with advanced and better features as compared to Nintendo
Switch and PS5 console
 Nintendo should also use the blue ocean strategy to target the non-gamers
segment if it wants to improve its market share.
 To maintain its market share of PS5, Sony should aggressively invest more in
promotion and advertisement as well as provide more offers.
Conclusion
Broadly, both Nintendo Switch and PS5 are competitive and advanced gaming
consoles. However, PS5 having been launched in 2020 and Nintendo switch in
2017, PS5 provides modern and more exclusive features as compared to what is
offered by Nintendo Switch. This is based on various aspects including graphics,
storage, weight, Ethernet amongst many others. As such is PS5 has presently
outsold Nintendo Switch. However, the consoles share various common aspects as
seen in the 4Ps marketing mix. For example, they share almost similar distribution
channels and promotion strategies. However, they are relatively different in terms of
products features and pricing strategies. Also, they differ slightly on their target
market.
References

Arruda Filho, E.J.M, Gammarano, I.D.J.L.P, 2018. For every “game over” there is a
“play again”: Analysis of users preferences regarding 7th-and-8th generation action
video games consoles. The Journal of High Technology Management Research,
29(1) pp.46-56.
Datta, H., Ailawadi, K.L and Van Heerde, H.J, 2017. How well does consumer-based
brand equity align with sales-based brand equity and marketing-mix response?
Journal of Marketing,81(3), pp.1-20.
DiDomenico, A. Perna, G. Trevisan, M. Vassio, L. Giordano, D, 2021. A Network
analysis on cloud gaming: Stadia, GeForce Now and PSNow. Network 1(3), pp.247-
260.
LearnMarketing, 2020. Marketing Strategy In The Game Consoles Industry, viewed
24th October 2021, available from
https://www.learnmarketing.net/marketingstrategiesinthegamesconsoleindustry.htm.
Levitt, T, 1980. Marketing success through differentiation of anything (pp. 83-91).
Graduate School of Business Administration, Harvard University.
Rand, D. Kizony, R. Weiss, P.T.L, 2018. The Sony PlayStation II EyeToy: low-cost
virtual reality for use in rehabilitation.,32(4), pp.155-163.
Scott Duncan & Associates, 2021. Whole Product Concept, (online), accessed 28th
October 2021, available from: https://sdassociates.ca/marketing-principles-behind-the-
higher-education-marketing-periodic-table/.
Stead, M and Hastings, G, 2018. Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp.29-43). Psychology Press.
Tech Desk, 2020. PS5 launches November 12 for $499, PS5 Digital Edition costs
$399. (Online). Accessed 28th October 2021, available from
https://indianexpress.com/article/techno.logy/gaming/ps5-launches-november-12-for-499-
ps5-digital-edition-costs-399-6599121

Appendix 1
Total Product Concept by Levitt layers (Levitt, 1980)

Appendix 2
The cost of PS5 in different currencies.