Chapter 7 Business Marketing

Sony does not use a business marketing strategy for their product. They do not use it because the PlayStation 4 is a consumer product. Places like school, hospitals, and businesses do not need a console to conduct any business. The PlayStation 4 was created for personal use and consumption. It is an entertainment system and that is its true purpose and Sony does not use business marketing strategy because the product was designed for personal use.

Chapter 8 Segmenting and Targeting Markets

Sony consists of eight marketing segmenting lines that include mobile, electronic, financial services, home entertainment, devices, pictures, imaging products and solutions, gaming and lastly music. These segments help Sony stay innovative and operational in the market. Sony Pictures just released The Amazing Spiderman 2 the movie domestically grossed about 91.7 million dollars in 3 days. Although impressive Sony was disappointed at the numbers stating that the sequel will excel its predecessor but not by as much as Sony hoped.

Sony gaming has been really successful since the release of the PlayStation 4. Selling over 7 million consoles to date since its release in the U.S and parts of Europe. The console is dominating the gaming world and its increasing popularity is only making the sales grow and grow. Now that the console is available on demand Sony is looking to reaching 8 million in console sales within the next couple of weeks. In April Sony released the console in Japan. For the company that was a marketing strategy because the PlayStation 3 does really well in that region still and Sony was using that to its advantage targeting that market after the U.S release instead of releasing the console in Japan First.

Sony is very successful in most of its segments. The company started mixing the segments with the release next month of its new Bravia Smart TV, Sony is using the Wi-Fi enabled television to counter act with the PlayStation 4 allowing the TV owners to stream game titles via PlayStation now service and play right on their TV’s. These innovative ideas keep Sony in competition with other companies like LG, Samsung, etc. Also with PlayStation 4 being the topic of discussion E3 is next month and who knows what Sony has planned to reveal for the new consoles bright future.

Chapter 11 Developing and Managing Products

Designing a system that is cheaper and more efficient than its predecessor:

Smart Design with the PlayStation 4

 "When designing the PS4, Mark Cerny, the architect of the system, took into consideration chips that had been developed for PowerPCs by AMD, and sent out questionnaires to game developers that would be creating software for the console. The questionnaire included what type of CPU, GPU, and other details they wanted, with the end-goal of building something 1,000 times more powerful than a PS3".

Mon, 2013-07-08 12:18 — pdt

Sony used developers to help give them ideas on how to improve and create in a more timely matter. The questionnaires used were created to help architects’ create a system that looked like a PC but was 1,000 times more powerful than its console before it. Also their results proved to be much cheaper for them to develop on a large scale resulting in a lighter, more efficient and less time costly system that would benefit developers in the long haul. Switching to a PC powered system made it easier early on in the consoles life cycle because game developers can use methods their use to create games faster. But it as the consoles life cycle proceeds the amount of power the system has would be able to innovate new ways to make games better and use the system to its full capacity. With 7 million consoles sold to date, Sony’s development strategy proved to be more successful than expected. Upon release Sony redesigned the controller, the camera and the overall system itself. Its life cycle is going to be longer than expected as well because there is room for improvement in the future.

This is only the beginning for Sony PlayStation 4 and with early success the console is only going to get better as developers use its PC powered software to only improve games graphics and dynamics. Sony is applying more applications and with software updates to only improve the console for its users. PlayStation 4 has a bright future and with its second holiday season coming in 2014 Sony has a line-up of games that are only going to improve sales and show of the systems capabilities to its full potential.

Only time can tell for PlayStation 4 with the E3 convention in June and holiday season approaching who knows what is next for Sony as the unveil new games and hardware for PlayStation 4. Compared to the PlayStation 3 was a heavier system and was more expensive to manufacture. It was also more difficult for developers to create games because software used was new and complicated. Sony switching to PC based technology helped game developers write programs faster and more efficient allowing games to be made faster and better than ever before. Not only are the graphics better but the system functions in a more gel like fashion allowing the user to use the system easier and more efficient. The controller was beta tested with consumers and the best controller concept was picked for the system. From personal experience I like the new controller the size weight and feel is more comfortable than the last. These innovative improvements were successful and an upgrade from the past. As PlayStation 4 moves into growth stage this year the best is yet to come.

Chapter 12: Services and Non Profit Organization Marketing

 Sony values its customers and employees. When they were creating the PlayStation 4 the beta tested different controllers and hardware that would change the players’ experience. They used their employees as test subjects to interact with the console and try new things out. Sony offers many services with their new console from music, to movies and television. The PlayStation 4 was custom built to satisfy the consumer needs as a gamer. Is essence the PlayStation 4 was Sony’s vision of the future of gaming. The console has an array of products from a camera to a motion controller with accessories to go with it and boost the overall experience when playing. With 7 million consoles shipped and sold Sony is feeling the success of their endeavor and it will only continue to progress and impress this generation of gamers. 

Chapter 10: Product Concepts

Sony doesn’t just sell PlayStation the console. They also sell other Sony products like head phones compatible for the console for online play, the compatible camera, controllers, PlayStation online memberships, and the most important of all video games to play on the console. Sony doesn’t just try to exceed expectations they go ahead and raise the bar. With PlayStation 4 being the modified version of its predecessor certain elements had to be changed and new products and to be invented in order to please the target markets expectations. Also with Microsoft hot on its trail Sony had to be innovative in their approach and sleek with their design of their products.

 The controller for example it’s called the dual shock 4 and it was designed preferably for players who play more shooting games. The price is retailed at 54.99-59.99 American dollars. That’s a hefty price for a single controller but the features of the controller that I recently explained in past posts goes to show that Sony had this price tag in mind form the start of production. The console itself was the talk of the town when the price tag was shown at $399.99. This was big for gamers and marketers because the previous console had a price tag of $499 and $599. This drop in price was a marketing strategy to make the console profitable from the start enabling Sony to make enough money over a long period of time before they would make a price drop.

 The strategy proved successful because they are selling more consoles than projected. Microsoft and their Xbox One had priced their console at $499 but included their camera module as bonus for the higher price tag. Sony also has a camera for their console too. The camera has been in high demand as well, the price of the new camera is $70. The camera serves a similar purpose as Xbox Kinect but minus some features like voice recognition.

The games for the console also took a price hike because of production costs and the console running on new technology. Production teams take more time to develop games for PlayStation 4. The costs to produce these games has gotten more expensive as well but the quality and product value is pleasing for the consumer. The games look better, play better and provide the consumer with a whole new experience that is truly next generation.

Sony has released a prototype virtual reality headset that will be compatible with PlayStation 4. It is only in the prototype stage but this new product is the start of a new wave for Sony to create a new innovative way to play games at home. The VR headset is called Project Morpheus and is compatible with PlayStation Move and the PlayStation camera. This headset provides a more detailed gameplay for the gamer. Allowing 90 degree peripheral vision without allowing the lenses to fog up. The head set also doesn’t place any heavy weight on the face and nose allowing comfort for the player. This new innovation is still early n development but shows how Sony is raising the bar for gaming in the future.

Sony as a brand strives with the PlayStation because of their loyal customers. Sony makes sure to keep their customers satisfied with new inventions and innovations that will benefit consumers and their loyal customers.

Chapter 17: Personal Selling and Sales Management

 

       Sony has dominated in sales with over 5 million units sold. Their strategy was simple create a system that innovates for years to come. Sony uses the relationship selling method to create relationships with all its users. They do that with PlayStation Plus. PlayStation Plus is a membership service sold to customers and is needed for the PlayStation 4 in order to access the online features of the system. With online gaming being the future and dominant force of gaming. Sony strives to enhance their customer relationships by enhancing its online services to better suit its consumers.
     
        The PlayStation 4 was designed for their loyal gamers. With that in mind Sony made changes to not only the console but also the controller and the interactivity of how the player can share experiences with friends and other gamers online. With PlayStation Plus Sony gives the customer access to free games monthly via downloads and also gives the player access to their individual account to keep track of trophies ( milestone rewards earned when progressing through games), and also keep track of their friends experiences as well. The share button on the controller allows the player to do just that enhancing the player relationship with Sony.

      

        I would say Sony is customer centric because they beta tested many controllers before deciding which model suited the player best. These beta test continue with the newly announced PlayStation Now. PlayStation Now is another service Sony provides that allows consumers to play any title in their vast library of games via monthly membership. The beta testing has proven to be successful and is going to be incorporated with the 2014 Sony Bravia model HDTV when it is released in June.

Sony uses their website to gain feedback on services and products. These learning techniques helps Sony better themselves as a company and use the information to better their knowledge management. These touch points allow Sony to further investigate any issues gamers have and improve them in due time via software updates. Software updates update games and the overall system to fix bugs and other issues players received when playing the console. An example of that is the Day 1 update. The day 1 update was an update on the day the console was released which was a bit time consuming but enhanced gameplay and the system for better use.

     

       Sony uses its retail sellers to help with point of sale interactions making kiosks available to possible customers to get their hands on the system and test out games via demos (short levels from games available for the console). Making these kiosks available in places like Best Buy, GameStop, and Toys R’US allows Sony to keep it customer relationships tight. It also allows retailers to promote product and give out further information about the console and its features further influencing sales of more consoles to new customers. Sony also uses these retailers to offer exclusives game extras via pre ordering of new games. Companies releasing games for the PlayStation 4 offer exclusive bonus content to customers who pre order games. Walmart and GameStop are most famous for utilizing this selling technique and has been very successful to date.

      

  Retailers have trained associates and managers who are able to promote and sell Sony products or any other gaming device. Like any retail establishment the stores build customer first relationships with consumers providing extensive information before the purchase is made and also enhances the customers experience by making them feel welcomed so the return again.

       

 

         Sony is an international company so they did not need much referrals to promote PlayStation 4 because consumers where just waiting for the announcement. However when Sony announced PlayStation 4 they used social media and their website to promote the upcoming system to its consumers. They announced at the E3 convention in 2013 and the convention was viewed virally throughout the world and loyal and new customers were able to see first-hand what Sony had planned for next generation gaming.

        The E3 convention is held every year and every year Sony has a panel and announces new products for their consoles as well as new games they have been working on with different studios. At the convention this is where Sony addresses its need s assessment and also shows their selling presentation for their products. This is their form of negotiation because at the convention players get hands on demos to play and experience first before the game are released. The follow up to that is Sony announces release dates for products and the bonuses players can receive from pre ordering their products. Through this technique Sony has been successful because they released a dominate console and has well exceeded their quota in sales. This is only going to continue for years to come.

 

Chapter 16:Advertising, Public relations, and Sales Promotion

          Sony has a very unique advertising for their PlayStation 4 combining real life people to imitate their characters in their games. they use that to create the connection from the game to the gamer. their slogan for the advertising is "Greatness Awaits" they are encouraging the gamer to utilize the system as best as they possibly can. Their advertising campaign began in the middle of 2013 after the E3 convention and Sony showed off its day one commercial which was its pioneer advertising approach to introducing the PlayStation 4 to the world. the commercial was very successful gaining over a 500,000 views on you tube in its first 48 hours. Product advertising followed with articles and interviews online and in magazines like game informer and PlayStation magazine. Sony was gearing up for the holiday season and the anticipated release of the PlayStation 4. 
          The public relations team at Sony realized this was a perfect opportunity for new sponsorship and promotion they acquired a deal with taco bell. the promotion was in the contest format and taco bell customers registered online and had a chance of receiving a PlayStation 4 a month before its release. That not only boost taco bell sales in the 3rd quarter but also gave Sony the edge over Microsoft who made a deal with Pepsi to promote their Xbox One on bags of Doritos chips. 
           These strategies used by Sony kept them in competition that when they sampled their product in game stop locations through out the country people lined up just to play the system and test out the console.This only boosted anticipation for the console and only made it more exciting for gamers to finally be able to play the system and get a feel for it. 

         Sony did the right thing and their promotion and advertising strategy really worked out and continues to work with the release of new games this year Sony is really doing a good job at promoting the console. That a good reason why they sold 6 million units in a short 4 month period and sales are only going to continue and the console is going to succeed and prosper over the years.