Digital Marketing Strategies of IBM and Microsoft

This assignment provides a detailed comparison of the digital marketing strategies employed by IBM and Microsoft. It analyzes their product offerings, distribution channels, promotional tactics, and pricing strategies. The study highlights the importance of digital marketing in business success and growth, while also acknowledging its limitations and risks. A key takeaway from this analysis is the need for companies to adapt to technological advancements and leverage digital platforms to remain competitive.

Running head: DIGITAL MARKETING 1
Digital Marketing
Student Name
University Affiliation
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Introduction
Digital marketing can be termed as the marketing of goods and services using digital
platforms such as the internet. This can be done using mobile phones, using advertisements
among other digital channels (Hemann & Burbary, 2013). The growth and development of
digital marketing has ensured that technology is used for both advertisement and selling other
than in production and manufacturing processes. It is also vital to note that the advancement of
technology all around the globe has resulted to the growth of this medium of marketing since
physical marketing is slowly being replaced by digital marketing. There are various types in
digital marketing such as the use of Search engine optimization, e-commerce marketing,
electronic billboards and social media optimization among others (Hemann & Burbary, 2013).
In the computer industry, digital marketing is inevitable to ensure the growth and success
of companies in this industry. Such companies produce high technology machines such as
computers, computer accessories, software and other hardware that keep on advancing as the
technology advances (Hemann & Burbary, 2013). The use of digital marketing ensures that more
customers are drawn in to the company’s websites, allows quicker access to available products
and services, save money and time and also update consumers on the current products in the
market.
IBM
The international business machines company is an international technological company
that has its headquarters in the United States. This company is in the computer industry and runs
its operations in approximately 170 countries (Doole & Lowe, 2008). The company a large and
assorted portfolio of products and services such as computer hardware, software and also offers

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consulting services in the area of Computers, computer accessories and nanotechnology. It is
also vital to note that this is a research company that has had major inventions such as the
automated teller machine, the floppy disk, hard drives among others (Doole & Lowe, 2008).
Microsoft
Microsoft Corporation is one of the leading international companies that deals with
computer software systems and applications. It manufactures, certifies, and sells software,
electronic appliances and other related services (Musolf, 2009). It is vital to note that is one of
the most profitable companies in the United States. The company uses a mix of both
demographic and behavioral division strategies in order to apportion the market in diverse
groups but with similar features.
Since there are so many competitors in the industry, the company has gained competitive
advantage through the strategy of acquisition. Microsoft has acquired successful global
companies such as Hotmail, Navision, Skype, Nokia and Visio Corporation among others and
this has ensured effective marketing for its products and services (Musolf, 2009). It is also
important to note that advertising on social media platforms has ensured that besides
technological growth, the company is able to reach its consumers in various parts of the world.
Apple Inc.
Apple is an international company that deals with the development and sell of electronics,
computer software and other online services (Ferrell, 2014). The hardware includes the iPhone
smart phones, iPad tablets, Mac computers, and apple watch and media player among other
items. The software includes the mac operating system and the iOS. It is rated among the most
successful companies internationally due to its high revenues (Ferrell, 2014).

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The company has embraced digital marketing strategies such as use of online
advertisements. The company has three target groups and has ensured the satisfaction of all its
clients through this medium of marketing (Ferrell, 2014). The increase in the use of technology
has enabled the company to use diverse marketing strategies increasing their revenue over time.
Marketing environment
Digital marketing has transformed the marketing strategies in the computer industry. The
internet has grown to become a rich market to source customers, and also offers information and
understanding in regards to competition and the target market (Viardot, 2004). As a result,
internet plays a central role in the discovery of new products and also enhances sales. This form
of marketing in also growing in other sectors such as agriculture, health care, manufacturing and
even retail banking. This is because it helps to enhance overall performance in companies.
The wide spread use of smart phones and social media has also played a very critical role
in advertisement and marketing. Most companies target the people in these platforms as target
customers (Viardot, 2004). It is also evident that digital platforms are effective in email
marketing, social media marketing and app marketing strategies. Some of the various types of
digital marketing techniques are discussed below;
1. Search Engine Optimization
This is one of the most popular marketing technique in the computer industry.
This ensures that a company’s products are among the top of the list when customers
search on Google (Hemann & Burbary, 2013). This helps to enhance the content
marketing when consumers search keywords mentioned in a company’s website.

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2. Social Media
In this platform the company provides all its information to the followers,
partners, fans and competitors with an aim of promoting its products. This also helps to
increase awareness of the brand and products to new customers as well as keep the
existing customers updated. Such platforms include; Facebook, twitter, instagram, snap
chat and linked in (Hemann & Burbary, 2013).
3. Content marketing
This is whereby the company uses the art of storytelling to consistently give
valuable information about the company’s products. This helps to increase brand
awareness and the aim is to ensure that the target consumers take an action that is
profitable to the company (Hemann & Burbary, 2013). This form of marketing also
ensures that stronger relationships are built between the customers and the company.
4. Email marketing
This type of marketing ensures that the company sends regular updates of the
company’s products to its subscribers. This helps to build and nurture relationships and in
a long run the subscribers can be turned into potential customers (Hemann & Burbary,
2013). It is also in this platform where the company gets feedback from its customers.
This will ensure that the company will use that information to solve customer related
problems thus ensuring customer satisfaction is attained.
5. Radio and television marketing
Companies can pay for advertisements in radio companies to allow public sharing
of information related to the goods and services offered (Hemann & Burbary, 2013).
Consequently, companies can also sponsor programs that are aimed at ensuring that all

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relevant information is given to clients. Television advertisements are also useful
especially to people who do not frequent the internet.
The threats and opportunities for companies in this industry help them to identify the
possibilities of growth due to the various prospects and also the risks that the company faces.
Some of the opportunities the industry has are;
1) There is a huge and fast growing market. A huge number of people are continually
registering into the digital platforms on a daily basis (Lamb, 2009).
2) There is increased rate of growth and advancement in technology. This has ensured a
consistent flow of activities in digital marketing and also enhances efficiency.
3) There is a huge competitive market for the clients (Lamb, 2009). This is because even
companies in other sectors seek to attract more customers than their competitors.
4) There is also a huge unexploited market that companies can take advantage of.
The threats are discussed below;
1) Increased competition in the development and production of similar goods and services
(Lamb, 2009).
2) Change in the consumer needs.
3) Decline in the profit margin for hardware items (Lamb, 2009).
Market segmentation - Target marketing
Target marketing is the process by which a company disseminates its market into smaller
groups and then aim at concentrating on the segment that has customers who have needs and
desires that match up to the products and services produced (Lamb, Hair & McDaniel, 2012).
This is done in order to attract new markets, increase the sales and also ensure the general

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success of the company. It is vital to note that target marketing simplifies the process of
distribution, pricing and promotion of goods and services and also reduces the costs of the same
(Lamb, Hair & McDaniel, 2012). It is divided into tiers; tier one consists of demographics, socio
economic and the product usage.
a) Apple
The company has an approximate of 1 billion people who use the apple products.
It is also evident that their demographics cover every niche (Lamb, 2009). This includes
the young people, old people, male and female. Their products also meet the needs of
every user and thus they are able to appreciate the design, quality and performance of
such products (Lamb, Hair & McDaniel, 2012). However, many of these products are
designed for the rich people due to the high prices.
The company has created employment for many people and currently has an
approximate of 47000 employees in the United States (Lamb, 2009). Research states the
growth of the company has been rapid in developing countries and has been stable in
developed countries. This has allowed for the company to expand its business (Lamb,
2009). The company is involved in various corporate social responsibility programs such
as promoting education and employment through vocational skills and life enhancement
programs.
Apple products and software are potent, secure, reliable and compatible in any office
environment. They are also easy to install thus ensuring that everything works together

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impeccably. The products are also designed to be simple yet durable with all features
required by the customers.
b) IBM
The company produces goods and services that serve people of both gender and
of all ages. The products are designed to suit the customer’s needs. It is also vital to note
that it produces goods for people in all income groups. This ensures that people in
different financial status are considered (Doole & Lowe, 2008).
The company has an approximate of 380,000 employees all around the world.
Some of the socioeconomic factors affecting the company include high interest rates in
some countries and increased exchange rates due to destabilization of foreign currencies
(Doole & Lowe, 2008). It is also vital to note that the forces of demand and supply are
not equal resulting to lack of equilibrium.
c) Microsoft
The demographics of the company ensure that there is continuous progress and
success of the company. The products and services offered by the company meet the
demands of both male and female, people from different age groups and from all cultures
in the world (De, 2000). This is also seen in the choice of workforce. The employees are
from different racial backgrounds and the ration on male is to female is 1:3 respectively
(De, 2000).
The socioeconomic factors affecting the company include high rates of
employment. The company has provided employment to approximately 124,000 people

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from all around the globe (Viardot, 2004). The company also aims at ensuring that all
people apply the power of technology and also safeguard the people’s human rights.
Strategic market mix analysis
These are a set of well-regulated and strategic tools of marketing that are used by
a company to ensure that preferred feedback is received from its potential customers. It
can also be termed as the measures that a company takes in order to effect the forces of
demand.
a) Apple Inc.
Product - The Company has over time continued to broaden its product mix. The
main products include Mac, iPads, iPods, iPhones, Apple watches, TVs and software
(Lamb, Hair & McDaniel, 2012). All these products are available in the market,
however, it is aimed at producing new products to meet the demands in the market.
Price – all Apple products are premium in nature and therefore do not board all
sections in the market. The pricing strategy is that of a leader in the market, however,
competition also impacts the pricing strategy (Lamb, Hair & McDaniel, 2012). As a
result the company follows the premium strategy in its pricing. The fact that these
products are costly marks them as prestige symbols (Valentin, 2014).
Place – there are various channels used by the company to reach the customers. It is
also evident that the company has outlets that sell its products (Valentin, 2014). They

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also use trade partners that enhance distribution of its products. The company also has
many staff that help the consumers in the outlets to understand the products well.
Promotion – the company targets customers in particular groups. The promotional
strategy includes the use of aggressive competition using various channels like the
television, online advertisements and billboards (Valentin, 2014).
b) Microsoft
Products – some of the products made by the company include computer devices,
software, computerized applications, games and entertainment (Viardot, 2004).
Place – the company has various avenues to distribute and sell its products. Such
avenues include; the company’s official website, authorized distributors and company
stores (Valentin, 2014). All these are area where the customers can procure or
download the company’s products.
Promotion – the company puts more emphasis on efficient communication
approaches in order to attract potential customers. It also ensures that strategic plans
are enforced in advertising, sales promotions, direct marketing, public relation and
sales to increase the sales (Viardot, 2004).

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Price – the company uses various pricing tactics at the same time ensuring that the
prices favor the market (Viardot, 2004). Here the company sets the prices depending
on the demands of the product
c) IBM
Products – there are various product lines in the company. These include intellectual
and reasoning solutions, international business services, formation of cloud platforms
and systems and international financing (Doole & Lowe, 2008).
Place – there are various channels used in distributing the products and services
offered by the company. These are the official company website, affiliates in
business, outlets and authorized service providers (Valentin, 2014).
Promotion – this is meant to assist the company to reach its target customers. These
strategies are primary advertising, sales promotion, public relation, direct marketing
and private sales (Valentin, 2014).
Price – this helps to determine the company’s income margins. The company
embraces prices that favor the market as well as pricing based on the value of the
products (Doole & Lowe, 2008).
Conclusion
Digital marketing is beneficial in the companies because it ensures that adequate
measures are taken into account to ensure the success of businesses. It is cost effective and saves

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time. It also broadens the scope of the target population. The growth and advancement of
technology ensures that digital marketing is at the forefront in ensuring the success and growth
of organizations. However, note that this form of marketing is only available in places where
there is internet access and there is also increased risk of hacking.
However, these type of marketing is very critical as it only requires specific skills to use
in operation digital technology. It is a growing opportunity that needs to be embraced by
companies to improve marketing and increase productivity.

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References
De, V. B. (2000). Data mining 2000: Mining data with Microsoft OLE DB and SQL Server.
Boston: Digital Press.
Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and
implementation. London: Cengage Learning.
Ferrell, O. C. (2014). Business ethics: Ethical decision making and cases. Stamford, CT:
Cengage Learning.
Hemann, C., & Burbary, K. (2013). Digital marketing analytics: Making sense of consumer data
in a digital world.
Lamb, C. W. (2009). MKTG. Toronto: Nelson Education.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio:
South-Western Cengage Learning.
Musolf, N. (2009). The story of Microsoft. Mankato, Minn: Creative Education.
Valentin, E. K. (2014). Business planning and market strategy.
Viardot, . (2004). Successful Marketing Strategies for High-Tech Firms. Boston, MA: Artech
House.