The Marketing Environment of the Sony Playstation 3 Essay Example

The Marketing Environment of the Sony Playstation 3 Essay Example The Marketing Environment of the Sony Playstation 3 Paper The Marketing Environment of the Sony Playstation 3 Paper Essay Topic: The Birth Mark The PlayStation 3 is Sony Computer Entertainments new generation video game console, the third in the PlayStation series. It is the successor to the PlayStation and PlayStation 2 and competes primarily against Microsofts Xbox 360 and Nintendos Wii. The console was released on November 11, 2006, in Japan and on November 17, 2006, in the United States, Canada, Taiwan and Hong Kong. It is due to be released on March 23, 2007, in Europe, Australia and Singapore. It is available in two initial configurations, the 20 GB Basic model and the 60 GB Premium model. Very few products and services can satisfy all consumers in a market. Not all consumers want or are prepared to pay for the same things and their reasons for purchase can vary greatly. Therefore to effectively implement the marketing concept and successfully satisfy the needs of the consumers, different product and service offerings must be made to the diverse groups of customer that make up a typical market. The technique mentioned above is called market segmentation and is defined by Jobber as The identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy. There are four benefits to be gained by successful segmentation which will be discussed in turn. The first being target market selection, which is a chosen segment of market that a company has decided to serve. As customers in the target market segment have similar characteristics, a single marketing mix strategy can be developed to match those requirements. Sony with their PS3 have decided to serve the young male market. This is evident through the products masculine, ultra modern design and sponsorship of major sporting events such as the UEFA Champions league 2006-2007. A tailored marketing mix is when marketers understand the requirements of a particular segment and devise specific marketing mix packages that meet the needs of their consumers. In this instance Sony have created a product with males in mind this is evident through the design and function of the PS3. The games are of a masculine nature such as fighting and sport and the product is advertised at sporting events and in male magazines such as FHM. Another benefit to be gained by successful segmentation is differentiation; this is when a company decides to target several market segments and develops separate marketing mixes for each It could be argued that Sony are trying to make the PS3 attractive to not only young males who are most likely to want to purchase it but also to others in the household with the amount of hi-tech features it offers. The last benefit of marketing segmentation is the use of swot analysis, it is crucial that the company to be able to do this effectively in order that new opportunities such as a gap in the market are noticed quickly, they are able to maintain and work on their strengths to ensure market dominance, be able to openly admit their weaknesses in order to improve them and identify and potential threats before it is too late. Sony may have used this type of marketing segmentation to identify the need for a new product. With its main competitor Nintendo working hard to gain market dominance through the release of the futuristic Nintendo Wii, It became apparent Sony has had to develop something new to wow consumers, as in the last five years there have not been a lot of major changes to the PlayStation product which has led to declining sales of the product which was once the strongest games console in the industry, which caused previous major competitor Sega with their Sega mega drive and Dreamcast consoles to stop producing completely. The marketing mix mentioned above consists of everything the firm can do to influence the demand for its product. The many possibilities gather into four groups of variables known as The four Ps: product, place, price and promotion. A product can be defined as anything which is capable of satisfying the needs of customers. The Sony PS3 as a core product satisfies the particular need of providing entertainment in the form of playing a game, this is the central benefit required by the consumer of the games console. As an augmented product as well as providing entertainment it is also a unique product. No other companies make the PlayStation 3 and there is also a large and varied selection of games available to play on the console. Extra features of the PS3 also include the ability to watch high definition movies through the inclusion of Blue-ray software as standard which is the latest in DVD technology, amazingly realistic gaming, backwards compatibility allowing PS1 and PS2 games to be played on the new console and online connectivity; these are the extra functional and/or emotional values that combine to form the brand. Branding is the process by which companies distinguish their product offerings from the competition. By developing a distinctive name, packaging and design a brand is created. Most brands are supported by logos and for the newest addition to the product line Sony have created a sleek contemporary logo clearly stating PS3 which is displayed across the console. Having a logo associated with the brand ensures recognition; this allows customers to develop associations with the brand and eases the purchasing decision. By choosing to carry on with tradition and name the new console the PlayStation, Sony have immediately caught the attention of all those who have bought/supplied their previous models. This is a good strategy to employ as Sony are continuing to build on what is already a reliable and respected brand considered a leader in its field. The next variables to be discussed are promotion and place. Sony has not made a lot of changes on how they plan to promote the new PlayStation model compared to previous ones. It is being made available in every gaming and electronic store and as with previous models it is available to pre-order. Not only does this guarantee the customer will get a console on the day of release, it also benefits the company by giving them an early indication of how many consoles will be required. Sony are also continuing to advertise on television and on billboards. One of their most successful advertisements could be those of the UEFA Champions League which were very noticeable around every stadium during football matches and would be viewed by millions and most certainly noticed by Sonys chosen target market of young males. For Sony, having the privilege of being associated with the prestigious UEFA brand will do wonders for the company and will be a major influence on those who view it if they believe the company sponsor their favourite football team. It also creates the impression that it is only the worlds best and most famous brands that advertise with one another. The final variable to be discussed is price. The Sony PlayStation 3 is very expensive priced at around  £500 pounds (Woolworths). For some market segments price is a key factor in store choice. Those stores that have greater buying power can afford to sell the product for cheaper. Woolworths are offering a choice of free game upon purchase of the PlayStation 3 in hope to gain the majority of sales. Sony has also decided to release two versions of the product; a basic and premium version. The premium version; is expected upon release, to be one hundred pounds more expensive due to triple the amount of hard drive space and the amount of technology Sony have incorporated into the one console. This marketing strategy is to give the consumers the choice whether to buy the console for the sole purpose of gaming or investing the premium console for the use a whole multimedia centre. Sony hope that tripling the memory for an extra  £100 will encourage the consumer to spend that little bit extra for such a vast difference in capacity. If a child wants this console for a birthday present their parents may be more likely to spend such a high amount of money on this product rather than another because of the amount of hi-tech features the product incorporates and the way Sony have cleverly marketed the product as not only a games console but also as a multimedia Centre that the whole family can use. Sony have also decided to only release the more expensive premium package first in the U.K. Sonys marketing strategy for the PS3 overall looks sound and seems as though it will be very successful in re-establishing the well loved PlayStation brand as the worlds favourite games console. However there are some changes I would recommend to ensure Sonys success. As was previously mentioned Sony plan to only release the premium package at first with no immediate plans to release the basic model thereafter. This could be a very dangerous strategy as it is already very expensive meaning it could wipe out a whole market by being unaffordable to a lot of people. Most people also already have the additional technology that is being offered with the PS3 such as DVD software and may not be willing to pay the extra unnecessarily when all they require is the gaming ability. The console should also have been released worldwide around the same time. As it was released in America and Japan last year customers may feel they are no longer receiving cutting edge technology, leading them to feel neglected by the brand and they may take their loyalty elsewhere. The price is also very high as you can buy a full high quality home computer system for around  £500 built to your requirements which is available now and may be more practical for the whole family. Sony should consider this and perhaps think about lowering their prices accordingly. Other than the above suggestions I feel that Sony have employed a successful marketing strategy and predict great success for them with their new extension to an already well loved and respected product line.