Introduction

The purpose of this report is to discuss about the segmentation, targeting and positioning for Microsoft Company. The segmentation, targeting and positioning of a company is considered as the most of marketing strategies in order to target customers and sales the products or services. The segmentation, targeting and positioning is very helpful for a company to take competitive advantage in the market more than its rivals. The segmentation, targeting and positioning strategies also decide the success rate in the market because of access towards right customers with the right products and at the right time.

Segmentation for Microsoft Company:

The segmentation of a market for the products or services of a company is related to dividing consumers into groups based on their shared needs and interests as well as preferences. The segmentation for products or services is mainly divided into geographic segmentation, demographic segmentation, behavioral segmentation and psychographic segmentation. In the case of Microsoft Company, it segments the market for its products and services in the same ways (Dudovskiy, 2019). In geographical segmentation for Microsoft, the criterion on which it targets the customers in the market is region and density. In regional wise market, it mainly focuses towards global marketplace to sell the products and services. Further, the urban and rural areas are considered for this company in density point of view.

In demographical segmentation, age, gender, life cycle stage of the people, and occupation are the segmentation criteria of this company. The age group in this segment is 16 years and older people both male and female. The life cycle stage of the customers is bachelor young boys, single people, newly married couples, etc. Further, students, employees and professionals are the criteria of occupation that are grouped by the company (Dudovskiy, 2019).

Moreover, the behavioral segmentation for Microsoft is divided on the criteria of degree of loyalty of customers, benefits shout of the people, personality, and use status in the market. These segmentation groups of customers help the Microsoft to achieve competitive advantage through selling products in these target groups of customers. In psychological segmentation of the company is related to make a group of social class people and lifestyle of the customers. This entire segmentation for Microsoft is very effective in the market to achieve its goals as increasing market share and growth of the company (Dudovskiy, 2019). The segmentation of this multinational technology company is the core of marketing efforts to influence maximum customer at the global level.

Targeting of Microsoft:

The targeting of Microsoft in the global market, it basically focuses towards entire customers present in the global marketplace where it target them to sell the products and services. Further, the urban and rural areas customers are also considered for this company to attract them and sale the products and services effectively. Microsoft also target customers that are 16 years and older people both male and female. Further, bachelor young boys, single people, newly married couples, etc. are also targeted by this company at the global level. Apart from this, students, employees and professionals are targeted in the global market to increase its products sales effectively and efficiently (Shastri, 2022). These target customers are mostly influenced by Microsoft in the international market because of their capabilities to purchase the products and services for a long time. In order to increase the interest of the customers in the market, its marketing strategy play important role to attract them at large numbers.

Further, Microsoft also target customers that are hard core loyals and soft core loyals in the market. Both types of customers are linked to the company effectively. The hard core loyals customer those that buy its products every time. The soft core loyals purchase the product in rare cases or prefers to purchase two or three brands. The customers that believe on efficiency, accuracy, speed of the products, Microsoft also target them on the priority basis (Shastri, 2022). Such types of customers in the world contribute more financial gain to the company through purchasing of the products on the regular basis. Apart from this, Microsoft also target customers those are determined and ambitious in the market. Such types of customers of this company are beneficial because of such customers assure to purchase products when innovative products will be launched.

The non-users, potential users, and first-time users, including regular users and ex-users are targeted by Microsoft to maintain its customer base for a long time in the global market. Furthermore, lower class, working class, middle class and upper class are beneficial target customers that purchase the products of Microsoft on the priority basis. The mainstreamer aspirer, succeeder, explorer, and reformer are also strategic target market for this company (Dudovskiy, 2019).

 Positioning of Microsoft:

The positioning of a company in the market can be seen as placing its brand successfully to occupy in the minds of the target customers. The positioning of the company related to the product is also based on distinguishing itself from the products of the competitors. At the same time, it also shows difference from the concept of brand awareness in the market. In this scenario, the positioning strategy of Microsoft can be determined as looking to transform itself from the “devices and services” business (Camilleri, 2018). This positioning of Microsoft in the global market has provided huge productivity and platform this company for the mobile-first and cloud-first world”.

The CEO of the company has also positioned the products of as multi-segment positioning. This positioning strategy of CEO of Microsoft is very helpful to target more customers instead of one customer segments in the global market. The different product and service packages at the same time are also positioned effectively and efficiently along with multi-segment positioning. This is very effective positioning strategy to targets more than one customer segments. For example, Dynamics 365 is a software of Microsoft that are produced to build a good relationship with the customers and support them starting with $115/month Customer Engagement Plan. This is related to a cost-conscious customer segment in the market (Dudovskiy, 2019). Apart from this, Microsoft also provides Unified Operations Plan to the customers for different segment customers starting from $90/month. Such type of customers is ready to pay extra for additional set of functions and features using software Dynamics 365. In standby positioning of Microsoft that is a technique involves the development of products and services effectively. In this positioning, Microsoft awaits changes in the market and find out the demand of the customer in the market in the future. For example, cloud-first, mobile-first’ business strategy are the part of standby positioning(Dudovskiy, 2019).

Conclusion:

After discussion of the segmentation, targeting and positioning for Microsoft Company, it can be concluded that these strategies are very helpful for this company to take competitive advantage in the market more than its rivals. The segmentation of a market for the products or services of a company is related to dividing consumers into groups based on their shared needs and interests as well as preferences. The targeting of Microsoft in the global market, it basically focuses towards entire customers present in the global marketplace where it target them to sell the products and services. The positioning strategy of Microsoft can be determined as looking to transform itself from the “devices and services” business. This positioning of Microsoft in the global market has provided huge productivity and platform this company for the mobile-first and cloud-first world”.

References

Camilleri, M.A. (2018). Market Segmentation, Targeting and Positioning. Retrieve from: https://www.researchgate.net/publication/319085560_Market_Segmentation_Targeting_and_Positioning

Dudovskiy, J. (2019). Microsoft Segmentation, Targeting and Positioning. Retrieved from: https://research-methodology.net/microsoft-segmentation-targeting-and-positioning/

Shastri, A. (2022). Detailed Marketing Strategy of Microsoft | IIDE. Retrieved from: https://iide.co/case-studies/marketing-strategy-of-microsoft/