Marketing Mix Effectiveness: A Comparison of PS4 and Nintendo Switch

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Added on  2023/01/18

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This report provides a comprehensive analysis of the marketing mix strategies employed by PlayStation 4 (PS4) and Nintendo Switch. The report begins with an introduction to the marketing mix, emphasizing its role in brand promotion and value enhancement. The main body of the report delves into the effectiveness of the 4Ps (product, price, place, and promotion) for each brand, comparing their approaches to product development, pricing strategies, distribution channels, and promotional activities. It also explores the STP marketing planning process, including market segmentation, targeting, and positioning for both PS4 and Nintendo Switch. The analysis highlights how each brand uses the 4Ps model to achieve its marketing objectives and gain a competitive advantage. The report concludes with a summary of findings, recommendations for improvement, and references to relevant sources.
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Marketing Mix PS4 vs
Nintendo switch
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1..................................................................................................................................................1
The effectiveness of marketing mix.............................................................................................1
LO2..................................................................................................................................................3
STP marketing planning process.................................................................................................3
CONCLUSION & RECOMMENDATIONS..................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Marketing mix mentions the set of operation or strategy which organization uses to
enhance values of brand or product in the business market. Marketing mix strategy is basically
designed for product promotion where focuses on four factors such as price, product, promotion
and place. For understand marketing mix will take two example of specific brands Nintendo and
PlayStation (Alon and et.al., 2016). Nintendo is worlds the largest multinational consumer
electronic and video game company. Headquarter of this company is Kyoto and revenue of this
organization is ¥1.201 trillion (Noam, 2018). Market share of Nintendo approx 1.17% while
PlayStation is a video gaming brand company. It is a production company which operates
various places like Tokyo, Minato, japan etc. Market share of PS4 approx 66.55%
MAIN BODY
LO1
The effectiveness of marketing mix
Marketing mix strategy is important for product promotion because it introduces essential
element which is crucial for marketing of product. Marketing mix strategy follows 4P's model
where Price plays vital role in market which supports to differentiate product from other product
and draws positive image of product in business market.
ATTRIBUTES NINTENDO PS4
PRODUCT Nintendo focuses in customer
demands and launches electronic
products so that customers meets
their objectives. This strategy uses by
Nintendo to gain trust of customers
regrading products and their services.
Nintendo's focus in product quality
along with varieties (Crawley,
Cameron and Selva, 2015). It offers
various type of electronic games like
Nintendo consoles and Nintendo
games. Nintendo launches new video
games which is electronic This kind
varieties offers by Nintendo. It
launches product for each category
like man. Female and children etc.
The brand is based on the set of
human demographics characteristics
PS4 uses product strategy where
offers varieties of product in
global market. For example
electronic games and playing
cards. PS4 offers DVD playing
games and PS4 game Thus, PS4
focuses on customer demand and
launches product in attractive
features so that, customers attract
from new version of electronic
games..
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such as gender (male and female),
social class (middle class and upper
middle class.)
PRICE
Nintendo offers affordable price
strategy along with extra features.
This strategy supports Nintendo to
takes competitive advantage in global
market. This low pricing strategy is a
technique to retain potential
customers and attracts new customers
(Hendrickson, 2018). Company is
using competitive pricing strategy in
order to attract customers and stay
competitive. Nintendo offers their
product in different features and
different prices and Nintendo enables
to raises sales of electronic products
which promotes high revenue.
While PS4 applies competitive
pricing strategy where offers good
variety electronic games on
similar prices of competitor so
that number of customers retain
with brand and attracts new
customer who believe in other
brand (Hennig-Thurau and
Houston, 2019). To attract
customers, PS4 offers discount on
festivals so that purchasing power
of customer enhance out. Also,
company uses value based pricing
strategy by setting cost of product.
for example PS4 system price is
$299.99 and PS4 Pro 1TB console
(black) price is 32548 rupees in
India where Customers can buy
products according to their needs.
PLACE
Nintendo uses distribution strategy
where distributes product in
significant countries around the
world. The market share of Nintendo
in India such as Pakistan, Canada and
Bangladesh, japan. Thus, Nintendo
establishes strong distribution
network in world (Kettunen, 2017).
Through this strategy enables to
enhance brand value in Indian
market. Nintendo supplies their
product through supply chain. For
example product supplies from
factory to supplier, supplier to
wholesaler, wholesaler to retailer and
in last retailer to consumers.
While PS4 also uses distribution
strategy to distributes product
where takes help of PS4 network.
PS4 provide good network for
distribution of product in global
market and super market (Goffin
and Mitchell, 2016). Main goal of
PS4 is that PS4 playing game
should have maximum number of
retailers, super market etc. to
distribution of product PS4 hires
agents which supports to
distribute products on large scale.
The reason behind this is that it is
the nature of the industry this is
how industry operates. Beside of
this PS4 stares to retail their
product from E-commerce sites.
Through these sites customers can
buy product according to their
requirements.
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PROMOTION
Nintendo takes supports of marketing
team to promote their products in
existing market and in new market.
To enhance value of brands uses
celebrity endorsement so that
customers comes in believe and
purchase products in large quantity.
Beside of this Nintendo takes help of
digital media like television, you tube
ads, own software application etc. to
promote their product in global
market (Onnen, 2019). Also,
company uses social media in order
to promote their products which is
providing a company a platform to
target a huge customer base.
While PS4 one of the identifiable
brand in world which applies
promotional and advertisement
strategy to promotes product in
global market. PS4 enhance the
brand name in market covers all
prospect of marketing such as TV,
social media, billboards etc
(Cruea, 2017). To cover super
market PS4 takes support of
posters and hoarding which so
that number of potential
customers attracts from brands.
PS4 also offers brand policies
which crates trust in customer
regrading brand. Thus, PS4
enables to gain profit in business
market.
LO2
STP marketing planning process
STP analysis is basically designed for marketing mix strategy where it is classified into
three parts market segmentation, targeting and product positioning (Games, 2017). STP
marketing supports to make market plan and Marketing strategy influence company, brand and
product asset for potential customer (Kane and et.al., 2015). PS4 and Nintendo uses STP for
marketing planning.
MARKET SEGMENTATION
PS4: PS4 focuses on potential customers who look for reasonable electronic games and company
offers digital games for upper and middle class people. PS4 specially uses psycho-graphic
segmentation strategy to achieve potential customers with different lifestyle and desire along
with multiple features (Goffin and Mitchell, 2016). To understand customers behaviour, PS4
uses behavioural segmentation strategy so that company enables to take benefits by giving values
to their customers. PS4 uses PlayStation controller and dual-shock 4 controller strategy for
focusing Indian market.
Nintendo: Nintendo uses games boy, Nintendo DS Lite etc. applies marketing strategy to
classifies potential customer in different segmentation according their needs. For example
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Nintendo uses digital game segment along with new features which target overall customers in
market because every customers wants new features along with affordable prices (Shay and
Palomba, 2018). Besides of this Nintendo uses different segmentation like demographical
changes, geographical and life-style etc. Company specially focuses on electronic game segment
with affordable to achieve potential customers in market.
TARGET MARKET
Nintendo : Company targets different types of buyer who requires different varieties of single
product such as 3D computer graphic. Nintendo understand their requirement and offers
electronic products so that they get their values. Company enables to gain trust and profitability
in company by offering values to their target buyers. Nintendo specially focuses on women
choices who play vital role in market growth (Nagle and Müller, 2017). Nintendo always to do
changes in their products so that targeted women segment gets good quality product along with
varieties.
PS4 : PS4 focuses on middle class customers who want new features in games. Thus, kind
customers are brand conscious and wants to meet their objectives by using advance version of
electronic games. (Grant, 2016). To element brand consciousness of customers, PS4 offers
playing cards,PlayStation move controller PlayStation VR etc. Thus, PS4 enables to give values
target customers.
POSITIONING
Nintendo: Company is a low-priced brand rather to other brands which is quite expensive like
Xbox etc. it gives values to targeted audience is children by offering electronic game (Rodricks,
2017). Through this strategy company enables to achieve trust of females which leads brand
positioning in global market. Thus, Nintendo maintains brand positioning in business market.
PS4: While PlayStation is most successful electronic game and establishes strong brand in global
market. To maintain brand position PS4 applies various strategy (Brückner and et.al.,2019). For
example PS4 offers those games which leads multiple game in a single gadgets along with
mental activity (Wu and Li, 2018). Through this strategy Nintendo enables to raises brand values
in business market and in customers.
CONCLUSION & RECOMMENDATIONS
It has been concluded marketing strategy which supports to enhance values of product,
brand in global market. PS4 applies 4P's model to enhance selling of product in global market. It
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uses promotional and advertisement strategy for promotion of product. Besides of this Nintendo
takes help of supply chain management who supports to distribute products on wide scale.
Nintendo uses electronic products' strategy where offers various varieties products so that it
enables to give values to customers. While PS4 uses affordable price strategy to achieve
attention of market and targeted customer towards product. Distribution strategy also uses by
PS4 to distributes their products. It also takes help of marketing team to promote their product in
business market. To promote product in market uses celebrity endorsement strategy so that
company enables to achieve customers trust regrading brand. PS4 is most successful to
application of 4P's model. Through this model establishes strong brand value in global market.
Nintendo should be take support from P & G network because this is strong network to distribute
product in large scale. Nintendo should be take help of marketing team which influence to
promote electronic video games in global market. Besides of this supply chain management is
effective in marketing to provide good services targeted customers.
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REFERENCES
Books and Journals
Alon, I and et.al., 2016. Global marketing: contemporary theory, practice, and cases. Routledge.
Crawley, E., Cameron, B. and Selva, D., 2015. System architecture: strategy and product
development for complex systems. Prentice Hall Press.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Kane, G.C and et.al., 2015. Strategy, not technology, drives digital transformation. MIT Sloan
Management Review and Deloitte University Press. 14(1-25).
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce: A stimulus-organism-response perspective. Internet Research,. 28(1).
pp.74-104.
Hendrickson, E., 2018. Comparison of Product Launch Strategies for Home Gaming Consoles:
Germany and Finland.
Hennig-Thurau, T. and Houston, M.B., 2019. Why Entertainment Markets Are Unique: Key
Characteristics. In Entertainment Science (pp. 125-150). Springer, Cham.
Kettunen, J., 2017. Console Gaming: An analysis of how digital sales can be increased from both
an industry and consumer perspective.
Onnen, J., 2019. Microsoft Store Strategic Audit.
Cruea, M.D., 2017. Examining the Virtual Hand of the Video Game Industry. The Evolution and
Social Impact of Video Game Economics, p.31.
Games, N., 2017. Games 360 US Report. Downloaded August. 30. p.2018.
Shay, R. and Palomba, A., 2018. First-Party Success or First-Party Failure? A Case Study on
Audience Perceptions of the Nintendo Brand During the Wii U’s Product Life
Cycle. Games and Culture, p.1555412018813666.
Rodricks, M.R., 2017. Risk Analysis of Nintendo Co., Ltd.
Brückner, S., Sato, Y., Kurabayashi, S. and Waraga, I., 2019. Exploring Cultural Differences in
Game Reception: JRPGs in Germany and Japan. Transactions of the Digital Games
Research Association. 4(3).
Noam, E.M., 2018. Marketing of Media and Information. In Managing Media and Digital
Organizations (pp. 397-452). Palgrave Macmillan, Cham.
Online
Definition of 'Marketing Mix' . 2016. [Online]. Available through:
<https://economictimes.indiatimes.com/definition/marketing-mix>
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What Is the Difference Between a Marketing Strategy & a Marketing Mix?. 2019. [Online].
Available Through <https://smallbusiness.chron.com/difference-between-marketing-
strategy-marketing-mix-637.html>
The segmentation, targeting and positioning model. 2019. [Online]. Available through:
<https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-
targeting/segmentation-targeting-and-positioning/
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