Principles of Marketing: PS4 and Nintendo Switch Marketing Strategies

This report undertakes a comparative analysis of the marketing strategies employed by two prominent gaming console brands: PlayStation 4 (PS4) and Nintendo Switch. The report begins by examining the target markets of each brand, highlighting their segmentation, targeting, and positioning strategies. It then delves into a detailed comparison of the marketing mix elements – product, price, place, and promotion – for both consoles, utilizing frameworks like Levitt's Brand Model to assess product strategies. The analysis covers pricing strategies, distribution channels, and promotional activities, including the use of social media, television, and websites. The report concludes by summarizing the key differences in marketing approaches and their implications for reaching target audiences. The study aims to provide insights into effective marketing practices within the competitive gaming console market.

PRINCIPLES OF
MARKETING

INTRODUCTION
Marketing refers to an activity which is associated with appropriately communicating the
products, as well as services of the firm to its existing and potential customers (Plank and
Canedy, 2015). Hence, in this relation, the report below is based on two prominent brands,
PlayStation 4 Games Console and Nintendo Switch Game Console, which are two of the most
preferred and recognised brands in the market. The report undertakes comparison and contrasting
of marketing mix of both these brands, along with demonstration of STP marketing planning
process.
MAIN BODY
Comparison of Target Markets
It is necessary for brands to develop a competent and effective profile associated with
their target markets which develops an insight in relation to determining how best the firm could
choose their markets in an appropriate and effective manner, which would help them in
channelising several strategies for better marketing. Hence, the profile of both the brands are
discussed below:
Developed by Sony Interactive Entertainment, PlayStation 4 is one of the leading gaming
console within the United Kingdom and beyond since its launch in 2014. Moreover, since this
brand has stated selling within the markets, it has sold more than 40 million units globally (Fun
Facts About the PlayStation 4 and Console Gaming, 2020). Hence, below is a detailed insight of
how the firm indulges into its marketing planning, by providing a detailed market profile of the
firm.
In context of segmentation, PlayStation 4 is one of the biggest brands when it comes to
gaming consoles. Hence, for segmentation, the firm focuses on three market segments,
preferably Geographical, Demographical, as well as Behavioural. These segments are very
effective in context of ensuring that the brand reaches to its target markets effectively (French
and Russell-Bennett, 2015).
In relation to targeting, PlayStation 4 targets specific markets within these segments in
order to enhance the scope of its sales within the marketplace. Hence, in this context, the brand
target customers from Urban areas of the UK. For its demographic segmentation, the market is
divided on the basis of age and gender, where preferably the firm targets individuals belonging to
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age group 10-45, whose income levels are more than £1000 and who are inclined towards intense
gaming experiences.
As for positioning, the organisation undertakes television and digital media as its key
strategies to position itself to its target customers in an economic manner.
Nintendo Switch is another effective console, which was developed in 2017 and is one of
the most effective hybrid gaming console that is developed by Nintendo. The main feature that is
supported by this brand is that it acts as a home console, as well a portable device for its users.
Its target market profile in comparison to PlayStation 4 is discussed below:
As for market segments, the firm focuses on only two market segments for its brand. For
instance, it emphasises on just demographic and behavioural segments in order to target these
specific markets within them for the console.
In context of targeting, it divides the demographic segment purely on the basis of age,
where the brand targets individuals belonging to age group 15-35. moreover, as for the other
segment, while the previous company targets intense gamers, this firm tends to deal with causal
gamers (Roberts, Dant and Lim, 2015).
The brand's positioning strategy is very much different from PlayStation, as the firm
targets only digital media to ensure that its target market is achieved. Moreover, it positions itself
as a console that is played only for fun and not competitively as in the case of the previous brand.
Comparison of Marketing Mix
Marketing Mix is an amalgamation of different elements of marketing that are associated
with the communicating the products and services to the customers. It covers aspects like
Product, Price, Place, Promotion. These are necessary to be analysed within different companies
to determine their application in an appropriate and justified manner.
The first element is related to the product strategies adopted by both the brands. To
effectively understand it though, below is an implementation of Lewitt's Brand Model, to ensure
better contrasting of this strategy in both the companies:
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Illustration 1: Levitt's Model of Brand Building
(Source: Levitt's Model of Brand Building, 2020)
As for the current gaming market, PlayStation 4 provides individuals with effective
gaming experiences by providing the individuals with a platform where they could play games in
highest possible visual quality, which enriches the experience. Moreover, its exclusive games
engages the customers which fulfils the requirement of customers. In context with Nintendo
Switch, it adopts a different approach in its core products by making portable, which helps
customers in playing in their comfort zone in equally enhanced visual quality.
For Expected Product, it is expected from PlayStation to enhance the graphic quality
within its games as with new potential consoles in the market, customers seek a better product
which could have a perfect high definition gaming experiences. In comparison to this, Nintendo
Switch's platform is only for casual gamers, which refrains the regular customers from buying
this product and hence, the expected product in this regard is the one which provide a larger
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variety of games, along with different gaming modes to ensure effectiveness within the same
(Cummins, Loe and Peltier, 2016).
Differentiation is one of the most important element in product strategy of an
organisation and is key aspect of Augmented Product. PlayStation 4 touches a higher notch
when it comes to ensuring deals in gaming. Its membership is very much effective in providing a
deal to customers so that it could provide them with free gaming, along with features inclusive of
portals like Netflix. In comparison, Nintendo Switch provides customers with differentiated
services such as portability, which could be even used in travelling. Along with this, the old, as
well as new games developed within Nintendo could be played easily within this console, which
attracts more of older players.
In relation to Potential Product, Nintendo Switch is very feasible when it comes to
mobility and comfort, along with gaming quality. In comparison to this, PlayStation 4 has
several new technologically advanced features that could attract customers, such as VR mode,
which uses implementation of virtual technology for gaming. Moreover, it provides game
sharing, along with playing on different platforms, which increases the gaming experience of
individuals.
Hence, both the brands are very much different at functional and emotional level. This is
because functionally, while PlayStation 4 focuses on building its brand based on graphics and
luxury of intense gaming, Nintendo Switch works more towards comfort level of individuals and
attracting more customers through its diverse range of games.
Another factor of marketing mix relates to the pricing strategies which are adopted by
organisations of a particular sector. In context of comparison, the prices of both PlayStation 4
and Nintendo Switch are compared through usage of Amazon as a platform for their availability.
Hence, their prices are discussed below:
BRANDS PRICES (£)
PlayStation 4 299
Nintendo Switch 217-400
Microsoft Xbox One 179
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Hence, as per the display above, it could be stated that PlayStation 4 uses premium
pricing strategy to effectively attract customers by giving them high quality games at an
exclusive pricing. On the contrary, Value Based pricing is used by Nintendo Switch in order to
provide effective pricing as per the estimated market value of its console (Bühler and Nufer,
2015).
With respect to Place, This element is usually related to distribution methods adopted by
brands to make their offerings available to the people. In relation to Nintendo Switch, while the
firm has more online and offline channels, the focus of this organisation is upon its regional
offices, which are located in mass market areas within the UK, for selling up its product in an
appropriate and effective manner. In comparison to this, PlayStation 4 is a luxury brand with
limited product distribution. Hence, the focus of the firm is more upon its online channels by E-
commerce websites like Amazon. As for offline, the company has exclusive Sony outlets where
PlayStation 4 is available. It reflects that the brand value of PlayStation is more focused on
exclusivity in comparison to Nintendo Switch, as the former deals its products globally by being
particular about its channels.
Promotion is yet another factor of marketing mix. As for PlayStation 4, the brand has
been promoting itself primarily on Social Media, as well as on the television in the past.
Moreover, to reach their target markets effectively, it builds its brand by using almost all the
modes of promotion, including newspaper and radios too. The method which they utilise is
compelling videos and appealing advertisement. The focus on this brand is upon positioning
itself as a luxury product. In comparison, Nintendo, its focus for promotion has always been its
website, which acts both as the the medium for promotion, as well as for commerce. Moreover,
brand promotion is another method through which it enhances awareness of the brand in an
appropriate manner. Moreover, it positions itself as a social and affordable commodity (Shaw,
2016).
CONCLUSION
Thus, it is concluded from the report above, that comparisons related to target market
profile allows in determining how different brands establish their target markets effectively.
Lastly, using different frameworks enhances the understanding of different implementation of
different marketing strategies.
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REFERENCES
Books and Journals
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