Competitive marketing strategies are used by companies who want to increase their growth, operations, and profits more than their competitors. These strategies are actually a bunch of policies that a business follows to get an advantage in the market. Another common reason why a company would implement marketing strategies is to create more reliable and viable revenue streams. There are many advantages to implanting competitive marketing strategies. Some of them include the following:
- Exploring new opportunities in the market
- Retaining customer loyalty by providing a better experience
- Staying updated about new technological changes in the market
Now there are different types of competitive marketing strategies that different businesses would follow. Here in this post, we are going to tell you about the marketing strategies of Apple, Microsoft, and Tesla, which are three big giants in the global business industry.
Apple’s Marketing Strategy Analysis
Apple is one of the most successful tech businesses across the globe. The secret to Apple’s success in being a market leader in its target industry is its marketing strategies. Let us explore the different strategies of Apple Inc. in some detail.
Apple’s Product Strategy
The product strategy of Apple is to focus on quality instead of quantity, unlike other brands. This is why you would see that over the years, Apple has only launched limited devices but still has captured the largest share of the smartphone industry. Instead of providing multiple options to buyers, the company creates products with features that are most wanted.
Apple’s Pricing Strategy
The second most important reason behind Apple’s success is its pricing strategy. Apple is no doubt a luxurious tech brand, and the pricing it has set is a bit higher than that of its competitors. But at the same time, you would note that the high price of Apple products is quite justified because of the features and exclusivity customers get.
Apple’s Place Strategy
Apple has made itself successful in the market by using online and offline channels for distribution. Apple sells its products around the globe through its physical outlets and is also available on different platforms like Amazon and Flipkart. Place and distribution strategy of Apple has widened its reach to both offline and online audiences.
Apple’s Promotion Strategy
Apple promotes its products in different channels. Electronic media, print media, social media marketing, and personal selling are all commonly used channels by Apple. Apple also promotes its products in TV shows and apple events. Customized and targeted promotion campaigns are the fourth reason why Apple is so successful.
Lessons Learned Through Analysis
Here are some lessons that you can learn from the analysis of Apple’s Marketing strategy:
- Product strategy must always align with the values of the brand
- The price must justify the quality of offered products
- Innovation is important to build big brands
- Distribution strategies must be set to provide convenience to customers
- Customer-brand bond should be kept strong
- There must never be a compromise on brand experience
Tesla’s Marketing Strategy Analysis
Tesla, despite all controversies, is today one of the most successful electric motor companies in the United States. You would be surprised to know that in the last year, 2022, Tesla’s model Y and 3 were the top-selling cars in the US. This very year Tesla earned 5th position in the world’s top 50 companies. So what makes Tesla so much success despite being a new contender in the automobile sector?
Here we have discussed the marketing strategies of Tesla, which have made it successful in a very short period!
Tesla’s Product Strategy
The product strategy of Tesla is to focus on introducing new products in the automotive market. The company’s mission is to mass-market electric cars in the automobile industry. Tesla invests in electric car production to promote eco-friendly vehicles across the globe.
Tesla’s Pricing Strategy
Tesla uses a skimming pricing strategy which makes it a premium automotive brand. The company charges high prices for its products which shows premium product quality. The high prices of Tesla products also show that it targets customers with higher statuses. The high prices of Tesla cars are justified because of the innovation, technology, and ecology the company provides. Now that Tesla has set itself as a reliable automotive brand, it is now on a mission to launch low-priced cars to capture a greater market chunk in the upcoming years. This step would definitely increase the profitability of the company.
Here you would be shocked to know that even with its premium pricing, the cost of Tesla models is lesser than the electric models of BMW and Mercedes.
Tesla’s Distribution Strategy
Tesla distributes its cars directly through physical showrooms and also through online channels. After 2019, however, the company has been focusing more on online distribution because of the premium cost of production. Customers can visit the Tesla website and order their desired model from there. Online distribution is considered to be one of the most important reasons behind the company’s profits and success, even in the hardship of covid-19 times.
The online distribution channel gives Tesla a huge advantage over its competitors.
Tesla’s Promotion Strategy
Tesla’s promotional strategy solely depends on the marketing efforts, online awareness, and social media engagements of Elon Musk. Viral video marketing is one of the biggest reasons behind the sales of the Tesla Model S and the cyber-truck.
The public relations strategies of Tesla have been very successful. Elon Musk buying Twitter, dances of Model X, and automatic tax services are common examples of Tesla’s promotional strategies.
You would be shocked to know that Tesla has a zero-advertising budget, unlike all of its competitor brands. Tesla sets itself apart because of social media marketing.
Because of all these marketing strategies, Tesla today has captured the electric vehicle market. Today Tesla has a bigger market share than BYD, GM, Volkswagen, BMW, Mercedes, Volvo, Audi, Toyota, and Hyundai!
Microsoft’s Marketing Strategy Analysis
Microsoft is the world’s fourth biggest tech brand after Apple, Amazon, and Google. The brand worth of Microsoft today is more than $660 billion. If you think about why Microsoft has been so successful, you must read about the detailed marketing strategies which it has been following lately.
In the past, Microsoft’s marketing strategy was focused on attacking its biggest competitor (Google). The scroogled campaign is one of the most popular examples of how Microsoft had an attacking strategy. Now, ever since Satya Nadella took a position as the CEO of the company has stopped hostile marketing and has now adopted a passive customer-centric approach.
Let us discuss the marketing strategies of Microsoft in detail:
Microsoft’s Product Strategy
Microsoft is basically a research and development-focused company. The company designs and develops products on the basis of customer demands. Some of the most popular Microsoft products include Windows, MS Office, One drive, touchscreen personal computers, and XBox gaming consoles. Recently, the company launched three products, including surface pro 9, surface laptop five, and surface studio 2. The brand focuses on creating high-level user convenience products. Some factors which make MS products successful are:
- User convenience
- Reliability
- Product Variety
- AI technical features
- Products meeting customer needs
Microsoft Pricing Strategy
Different pricing strategies are used by Microsoft to capture its target market. Microsoft uses a market-oriented pricing strategy to set premium prices for its Windows operating system. As the demand for the product increases, so is its price.
The company also uses a freemium pricing strategy where it provides basic features for free and asks for charges for additional features. Office 365 is the biggest example of a freemium pricing strategy.
Microsoft also uses a tailored pricing strategy for some of its products. For example, for its cloud storage services, it charges users as much as they use or can afford.
So the pricing strategy of Microsoft teaches that a company should consider multiple factors like demand, market competition, and customer flexibility when setting product pricing.
Microsoft Distribution Strategy
The place distribution strategy of Microsoft is quite diverse. The company uses multiple distribution channels to sell both hardware and software products.
Microsoft mainly distributes its products through its online store and website. On the official website of the company, customers can find all kinds of software-related products. However, for hardware-related products, customers have to visit physical stores of Microsoft.
Other than these two official channels, the company also authorizes third-party sellers to distribute their products.
Microsoft Promotion Strategy
The promotion strategy of Microsoft is well-focused and comprehensive. The company uses different promotional strategies according to different market segments. Recently Microsoft launched an ad campaign to promote its new products and to spread awareness. Surface Pro 6 was promoted through shadow posters which were very successful.
Other than direct advertisements on TV, the company also uses sales promotion strategies. Microsoft provides regular discounts and incentives to customers to push sales. Along with this, the company also uses a direct marketing strategy by connecting with educational and professional institutes and upselling them both software and hardware products.
The PR team of Microsoft also plays an important role in promoting the brand and all its products. Positive customer relationships and media coverage are all part of the promotion strategy of the company.
In addition to all this, you can also see Microsoft targeting audiences on all major social media platforms, including YouTube, Facebook, and even TikTok!
End Words
Here in this article, we have discussed the marketing strategies of the top three brands in the world. Every company has a different marketing approach, and it all depends on its size, reputation, resources, and ability to take risks. Similarly, Tesla, Microsoft, and Apple have developed multiple strategies according to their target market and have been very successful in capturing large chunks of the market. If you want to learn more about these businesses and their journey in planning different marketing strategies, we would suggest you visit a reliable analytical resource like Strategy Finders!