MG412: Principles of Marketing: Comparing Marketing Mix Strategies

This report provides a comparative analysis of the marketing strategies employed by PlayStation 4 and Nintendo Switch, focusing on the application of the 4Ps (product, price, place, and promotion). The report begins with an executive summary highlighting the importance of marketing in business strategy and the objectives of examining the target market and brand positioning of the two gaming consoles. It then delves into an introduction discussing the market share and sales figures of both brands. The core of the report is a detailed comparison of their target markets, segmentation strategies (geographic, demographic, psychographic, and behavioral), and the application of the marketing mix elements. The analysis covers product features, pricing strategies (competitive and value-based), distribution channels, and promotional campaigns. The report also offers recommendations for both brands to improve their competitive positioning and marketing efforts, including suggestions for product design, packaging, and promotional tools. The conclusion summarizes the key findings, emphasizing the importance of effective marketing in achieving business objectives and providing value to customers, while referencing the provided references.

RUNNING HEAD: PRINCIPLES OF MARKETING 0
2020
Principle of Marketing
Student’s Details-

PRINCIPLES OF MARKETING 1
Executive Summary
Marketing is treated as the core of the business strategy which has been accounted for providing
value to the customers. The purpose of the report is to make the examination of the target market
and have an understanding of target market analysis along with the brand positioning of the
product. The report has considered the research based on the journal articles, academic books
and the website sources. The results of the report are successful in the determination of the
focused market and the appropriate ways for making communication with the customers and
building relationships with them.

PRINCIPLES OF MARKETING 2
Contents
Introduction......................................................................................................................................3
Target Market..................................................................................................................................3
Product.............................................................................................................................................4
Price.................................................................................................................................................5
Place.................................................................................................................................................5
Promotion........................................................................................................................................5
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

PRINCIPLES OF MARKETING 3
Introduction
Marketing is the process of selling the products and services to the desired target market through
the use of the appropriate marketing strategy which determines the competitive positioning into
the desired target market. Here, the report is based on the target market and competitive
positioning of the two brands which are PlayStation 4 Games Console and Nintendo Switch
Game Console. Both brands are of gaming consoles having the latest models. PlayStation 4
Games has the brand of Sony has sold 91.6 million units which is more than Nintendo (Erik
Kain, 2019). Moreover, Nintendo has sold the 961,543 units which has been made at the end of
December 28 in 2019 (Kain, 2020). Also, the market share of PlayStation is 49.98% which is
higher than Nintendo 0.8% in North America (Statcounter, 2020). The report will discuss the
comparison of the target market and the analysis of the marketing mix strategies.
Target Market
Determination of target market is necessary for the company which can be possible through the
segmenting of the market on the basis of geographic, demographic, psychographic and
behavioral segmentation which can help the company or brand to reach to their customers
(Andaleeb, 2016). Both the brands PlayStation 4 and Nintendo have the same target market as
the products are high tech gadgets which are primarily designed for the consumers who play
video games. This also depends upon the market characteristics which can include the age, level
of education, lifestyle, habits and preferences which helps in the determination of the target
market for both the brands. Moreover, identification of target market is necessary for the brand
as this certainly helps in understanding the needs of different market groups. The following table
shows the target market of both PlayStation 4 and Nintendo as both the brands have same
products.
Segmentation Basis Target Customers
Geographic
Density of Population Urban Areas
Region All over world
Age Age range from 15 to 30
years
Gender Both male and females

PRINCIPLES OF MARKETING 4
Demographic Income Middle income and Upper
income category
Educational Level High School, Bachelors
Social Status Upper class and working-
class people
Psychographic
Lifestyle Customers having Modern
lifestyle
Habits People who watch TV and
play games
Personality Easy going and determined
Behavioral Attitude Positive and enthusiastic
The target market of both of the brands are the people who interest in technology and the
products of both the brands are highly made for the consumers who have interest in playing
video games. The brand reaches their customers through TV advertisements and other
commercials (Wedel & Kamakura, 2012). After the identification of the target market, it is
important for the brands to have a competitive positioning through the appropriate marketing
mix strategies.
Product
As per the application of model of Levitt which has stated that there are five levels of product
which can create the potential impact on the product. The five levels of the product are core
need, actual product, expected product, augmented product and potential product which has an
impact on the consumer’s preferences. Both brands PlayStation 4 and Nintendo have specific
features and color packaging which can reach the level of actual product. Also, for making their
product augmented, PS4 has come up with the applications to control the device (Prima Games,
2013). Also, in the case of Nintendo, the brand has feature of turning on TV through the gaming
console and also has a Joy-Con controller which is the different functionality that the brand has
added into their product (Van Camp, 2018). Further, the application of Aaker’s brand personality
framework can be utilized in terms making the brand effective through the sincerity, excitement,
competence, sophistication and toughness which will increase the brand value of both of the

PRINCIPLES OF MARKETING 5
brands. By the use of this framework, it can be determined that both of the brands have used the
appropriate brand values in which the brands have shown the honesty and enthusiastic approach
for creating a good product appeal. Also, the products are highly competent, reliable from the
point of view of the reliability of the brands.
Price
The pricing strategy of the company decides the appropriate prices at which the product will be
sold and this can be competitive and also this could be made for the earning of the sufficient
profits. Moreover, the companies also account for value-based pricing strategy which is based
the facilitation of the values that the customer believes in. The pricing strategy of PlayStation 4
is initially high tech premium as it offers certain features into the product which are
comparatively different and makes it different from the other gaming console brands (Gonzalez,
2020). Further, Nintendo has been relying on the competitive pricing as the company has made
use of this strategy for the earning of the competitive advantage and often making a prominent
position into the market place.
Place
This involves the successful delivery of the product through the maintenance of the distribution
network to be used by the company for the facilitation of the product to the consumer. The
distribution or channel strategy depends upon the location of the business, location of the target
market, warehousing and transport and logistics used (Yang, et al., 2017). The channel of
distribution used by both the company is safe and reliable which leads to the safe delivery of the
product. Both of the brands have created the brand value though the timely delivery of the
products which can also lead to the safe and suitable channel of distribution which can certainly
help the brands to create the mindset of the customers in terms of fast and instant delivery of the
products for reaching the target customers (Teller, et al., 2016). Basically, the products of both of
the brands are reached to the customers through the e-commerce websites.
Promotion
Promotion is the most important component of marketing mix which aims to make an increased
brand awareness and also making the product recognizable into the target market. PlayStation 4

PRINCIPLES OF MARKETING 6
has adopted the marketing strategy in which the company has run promotional campaigns having
the tagline “Greatness Awaits” which has certainly brough the attention of serious gamers
(Mortimer, 2015). In comparison with Nintendo brand which has made the different marketing
approaches to stay ahead of the competition. This brand has focused on giving gifts cards and
discounts for reaching the target audience. Nintendo gives straightforward discounts on the
popular e-commerce websites like Amazon which has grabbed the attention of larger number of
customers. Moreover, there are certain things which the companies do which are part of the
promotional efforts and which can also lead to the formation of the distinct brand image in front
of the customers.
Recommendations
From the above analysis, this can be recommended that both PS 4 and Nintendo should target the
customers by segmenting the market as per certain characteristics and target upon the individual
segments. Also, both the brands must make improvements in the appropriate competitive
positioning of the product which can reach to the final consumers. Moreover, the brands must
make the products with the attractive design and packaging to get the attention of the customers
(Festa, et al., 2016). Also, the brands must use appropriate strategy and make use of the
distribution channel which can ensure in the safe delivery of the products. The last
recommendation which can be given to the brands is that they should use the appropriate
marketing of the product and also make use of the certain promotional tools which can certainly
strengthen the brand positioning.
Conclusion
To conclude, it can be said that the marketing is an important aspect of business which makes
use of the certain techniques for the facilitation of best value to the customers. This involves the
targeting of market and making the product successfully positioned into the desired target market
which can lead to the higher profitability of the business and higher revenues. Here, the report
has discussed the target market of two brands which are PlayStation 4 and Nintendo which are
dealing into the game console products. The report has considered their appropriate marketing
strategy which is used by the brands in terms of product, price, place and promotion and also
given the recommendations for the improvement of the situation.

PRINCIPLES OF MARKETING 7

PRINCIPLES OF MARKETING 8
References
Andaleeb, S., 2016. Market segmentation, targeting, and positioning. In: Strategic marketing
management in Asia: case studies and lessons across industries. s.l.:Emerald Group Publishing
Limited., pp. 179-207.
Erik Kain, 2019. Putting The PlayStation 4's 91.6 Million Sales Into Context. [Online]
Available at: https://www.forbes.com/sites/erikkain/2019/01/11/putting-the-playstation-4s-91-6-
million-sales-into-context/#717639276c50
[Accessed 26 March 2020].
Festa, G., Cuomo, M., Metallo, G. & Festa, A., 2016. The (r) evolution of wine marketing mix:
From the 4Ps to the 4Es. Journal of Business Research, 69(5), pp. 1550-1555.
Gonzalez, O., 2020. Sony faces obstacles in pricing PlayStation 5. [Online]
Available at: https://www.cnet.com/news/sony-face-obtacles-in-playstation-5-pricing/
[Accessed 26 March 2020].
Kain, E., 2020. The Nintendo Switch Has Now Sold More Units Than The Super NES. [Online]
Available at: https://www.forbes.com/sites/erikkain/2020/01/02/the-nintendo-switch-has-now-
sold-more-units-than-the-super-nes/#1d269b4246cd
[Accessed 26 March 2020].
Mortimer, N., 2015. Sony’s record PlayStation 4 sales shows marketing focus on gamers is
paying off. [Online]
Available at: https://www.thedrum.com/news/2015/12/07/sony-s-record-playstation-4-sales-
shows-marketing-focus-gamers-paying
[Accessed 26 March 2020].
Prima Games, 2013. PlayStation 4: Top 10 Console Features. [Online]
Available at: https://primagames.com/feature/playstation-4-top-10-console-features
[Accessed 26 March 2020].
Statcounter, 2020. Console Operating System Market Share North America. [Online]
Available at: https://gs.statcounter.com/os-market-share/console/north-america
[Accessed 26 March 2020].

PRINCIPLES OF MARKETING 9
Teller, C., Kotzab, H., Grant, D. & Holweg, C., 2016. The importance of key supplier
relationship management in supply chains. International Journal of Retail & Distribution
Management.
Van Camp, J., 2018. 14 Surprising Things You Can Do With Your Nintendo Switch. [Online]
Available at: https://www.wired.com/story/10-surprising-things-you-can-do-with-your-nintendo-
switch/
[Accessed 26 March 2020].
Wedel, M. & Kamakura, W. A., 2012. Market Segmentation: Conceptual and Methodological
Foundations. In: Market Segmentation: Conceptual and Methodological Foundations.
s.l.:Springer Science & Business Media, p. 382.
Yang, Z., Hu, X., Gurnani, H. & Guan, H., 2017. Multichannel distribution strategy: Selling to a
competing buyer with limited supplier capacity. Management Science, 64(5), pp. 2199-2218.