Ch. 4 - The Marketing Environment

Target Market: 

A Group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges.

Sony PlayStation has one specific goal in mind, to make money. Most companies will try and sugar coat it with other get ups like "improving your quality of life" but really when it comes down to it, its a what will garner the most profit type of situation. The difference is, PlayStation knows know color, creed, age, race, or religion. PlayStation is targeted towards one particular niche: GAMERS.

Its an advantage and a disadvantage for PlayStation. Being one of the "founding fathers" of counsels, PlayStation will always have a place in gamers hearts. but an important part of the marketing environment is the external market and understanding it. Gamers always want more from a product. PlayStation can lasts years in a living room but eventually its time for new technologies and new games, to spice things up and not lose existing customers. Analyzing the external environment gives PlayStation the opportunity to know when these changes are necessary.

Environmental Management:

When a company implements strategies that attempt to shape the external environment within which it operates. The factors within the external environment that are important to marketing managers can be classified as, social, demographic, economic, technological, political and competitive.

Social change is extremely difficult to predict or affect, because a lot of the time things just up and change out of the blue. With PlayStation 1, gamers were satisfied with just a gaming device, with PlayStation 2, you could play DVDs and Cd's, with PlayStation 3, apps were introduced and blu-ray, now with the upcoming PlayStation 4, you can create social profiles, and watch television. 

Sony, although a world-wide global company, knows when marketing in the US, it should adhere to American values: 

• Self-Sufficiency: PlayStation is a standalone machine, made for any and everyone, its easy to learn and hands on, you don't need to be dependent on other factors to use it.
• Upward Mobility:  The PlayStation has a separate device, the PlayStation Vita, where you can go anywhere and not be constricted to one place.
• Work Ethic: its a powerful machine that has been built by the best tea
• Conformity: This is especially prevalent in ads, where it shows a variety of different games and slogans that show unlimited possibilities and all being treated equally.

Sony PlayStation is lucky in that, when it works it WORKS, and when it doesn't it doesn't. If you aren't a gamer, PlayStation will not appeal to you period, but if you are a gamer, know gamers, have a child whose a gamer, or even host a lot of parties where games are played, PlayStation can appeal to you due to its marketing.

PlayStation is on every single social media site, like its competitors Wii and Xbox, its important for the Internet savvy to have access to PlayStation news, but its also important with how businesses communicate today. Not everyone watches TV or listens to the radio, but by being on social networks, PlayStation is accessing global domain, and its message is being heard around the world with a single click.

Demography:

The study of peoples vital statistics such as age, race and ethnicity and location.

PlayStation focuses less on race and ethnicity, but sometimes can change marketing depending on age and location. Of course marketing in japan would be different then in US based on different morals and what consumers find appealing. Also for different ages, PlayStation will focus more on teens, there are 25 million teens in the united states alone, they spend approximately seventy-two hours per week tuned in electronically. Teens, unlike adults, are less likely to have full-time jobs, meaning more time to play video games. However, even the adult market is crucial for PlayStation success because of game sub-genres like First Person Shooters, or games like Grand Theft Auto (arguably the most financially successful game series in the history of gaming) are 18+ years are older meaning adults have to be the target audience. 

Another thing to consider is income, PlayStation tries to remain as affordable as possible, allowing people to borrow and rent games, based on there availability. PlayStation doesn't just appeal to certain incomes, because that would severely affect its profits. 

All-in-all, PlayStation is very aware of its marketing environment and that's what leads to its current success.

Ch. 3 - Ethics & Social Responsibility

Ethics refers to the moral principles or values that generally govern the conduct of an individual or a group. Ethics can also be viewed as the standard of behavior by which conduct is judged.

Morals are the rules people develop as a result of cultural and values and norms

Each Sony group abides by a Code of Conduct called: "Sony Group Code of Conduct". The Sony Group Code of Conduct reflects principles set out in the "Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises", "the United Nations Global Compact and the United Nations Universal Declaration of Human Rights". Sony also participated in the formulation of and observes the standards outlined in the "Charter of Corporate Behavior of the Keidanren (Japan Business Federation)", an alliance of Japan's leading corporations.

By reflecting principles being set out by other guidelines like the UN and OECD, Sony is making sure there guidelines work across all nations they sell there product too, since morals tend to change across cultures. Its important that Sony understands its Corporate social responsibility, a business's concern for society's welfare or CSR. Being a big company, regardless of what products they sell, when people shell out more for there products people expect something in return.

On there website, Sony has a specific part where they inform us of there knowledge of CSR:

"Our companies are known for creating products that enrich people's lives.  Through Sony Corporation of America and its operating companies, we’re equally dedicated to improving people's lives.  Our commitment extends to helping local communities, fostering better educational systems, supporting the arts and culture, helping disadvantaged youth, protecting and improving the environment and encouraging employee volunteerism.

Our strategic philanthropy and corporate social responsibility (CSR) efforts are aligned to our key businesses and focus on three distinct areas:  arts and culture, technology and the environment, with a particular emphasis on education in each of those areas.  We are also quick to provide assistance when large-scale disasters strike.  We've helped victims of major hurricanes, earthquakes, tsunamis and wildfires and the 2001 attack on the World Trade Center. 

The notion of corporate citizenship is deeply embedded in the culture of Sony in America.  We're proud of the programs and partnerships that have touched thousands of lives throughout the U.S. and of the thousands of Sony employees who have given generously of themselves in support of our goals"

I view Sony Playstation as a very Ethical and Socially Responsible product and company.

Ch. 2 - Strategic Planning for Competitive Advantage

Sony Computer Entertainments star strategic business unit is Sony PlayStation. A Strategic business unit is a subgroup of a single business or collection of related businesses within the larger organization. Each strategic business unit has its own rate of return on investment, growth potential and associated risks, and requires its own strategies and funding, When properly created, an SBU has the following characteristics: A distinct mission and specific target market, control over its resources, its own competitors, a single business or a collection of related businesses, plans independent of the other SBUs in the total organization.

Sony PlayStation has become a semi-permanent fissure in the gaming market, there is always an audience ready and willing to receive anything "PlayStation" however, and Sony still has to plan strategically to remain one of the top three in the game market. PlayStation's biggest competitors are Microsoft's Xbox and Nintendo's Wii and DS. 

This year has been one of the biggest for the PlayStation brand, with the announcement of PlayStation 4 the brand new system. During the annual E3 (Electronic Entertainment Expo) the three big game companies announce their latest development, and the competition essentially begins, of course PlayStation has its share of loyal customers that will continue to be faithful to the brand, but Sony's job is to grab new customers and Microsoft’s and Nintendo's customers in the process. This is done through strategic planning: the managerial process of creating and maintaining a fit between the organization’s objective and the evolving market opportunities.

The PlayStation target market is gamers (which is all ages and both sexes) its main goal right now is to get gamers to fall in love with its system all over again. Its new tagline “greatness awaits” lures people in, but also with its strategic planning at gaming expos like, E3 and Gamescon, PlayStation appeals to gamers with exciting new games from every genre and creating a gaming powerhouse with advanced technologies. Another way to maintain a competitive edge to have games exclusive to the console, forcing players to purchase the system if they want to play the hottest games.

Sony is reportedly spending $100 Million dollars on a marketing campaign involving billboards, commercials, magazine, spreads, and other ads. Sony’s marketing strategy is Product Development, a strategy that entails the creation of new products for present markets. Sony knows trying to appeal to everyone will not rein in as much profits as aiming at target consumers: gamers. Microsoft received much criticism for its Marketing strategy with the Xbox one, aiming at anyone who sits in the living room by adding television, apps, and other things plus a plethora of fees for sharing games and buying pre-owned games, something that is critical to gamers who may not be able to afford new games or want to try games before committing to it. Microsoft was critically panned for apparently punishing gamers, for being gamers.

Microsoft eventually recanted its fees and tried to show incentives for gamers, but not without pushing PlayStation in the lead of sales, having 1 million units pre-ordered within the first month of its availability. PlayStation has a niche competitive advantage: it seeks, targets and effectively serves a single segment of the market. However its marketing is effective across the globe.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

Mission Statement:

To experience the joy of advancing and applying technology for the benefit of the public

 

Sony Corporation, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Kōnan Minato, Tokyo, Japan. Its diversified business is primarily focused on the electronics, game, entertainment and financial services sectors. The company is one of the leading manufacturers of electronic products for the consumer and professional markets. Sony is ranked 87th on the 2012 list of Fortune Global 500.

Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its four operating segments – Electronics (including video games, network services and medical business), Motion pictures, Music and Financial Services. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Mobile Communications (formerly Sony Ericsson), and Sony Financial. Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-largest television manufacturer in the world, after Samsung Electronics and LG Electronics.

The Sony Group is a Japan-based corporate group primarily focused on the Electronics (such as AV/IT products and components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. The group consists of Sony Corporation (holding and electronics), Sony Computer Entertainment (games), Sony Pictures Entertainment (motion pictures), Sony Music Entertainment (music), Sony/ATV Music Publishing (music publishing), Sony Financial Holdings (financial services) and others.

 Long before there was such a thing as affordable CD-ROM gaming or 3D polygonal graphics, Sony Computer Entertainment Inc. (SCEI) set the not-too-humble goal of creating a gaming platform that would become as pervasive as the VCR and change the industry forever.

In 1994, Sony Computer Entertainment America (SCEA) was founded as the North America division of Sony Computer Entertainment Inc. Taking approximately four years to develop, the PlayStation^® game console was introduced in the United States in 1995.

The launch of the PlayStation^® brand was a sensation. In the very first weekend, more than 100,000 units were sold. In the first six months, over a million were sold. In April 1997, with nearly 4 million PlayStation^® game consoles in North America, we found a way to strengthen our bond with PlayStation^® owners even more. Our interactive relationship marketing program, PlayStation^® Underground, gives us the opportunity to recognize and reward our loyal gamers. Members of the PlayStation^® Underground can feel as though they belong to a subculture of intense gamers by experiencing new game challenges and getting the scoop on upcoming games, merchandise, and special offers.

The company next set its sights on development of the PlayStation^®2, which became available to consumers in November 2000. With its incredible power and the exciting, and exclusive ability to play both CDs and DVD movies, this new system was unstoppable, making it possible for smooth, lifelike animation to be shown in real time as well as helping to establish DVD as the standard optical disk media format worldwide. Now in the tenth year of its product lifecycle, PlayStation^®2 is still going strong and continues to be one of the world’s most popular video game systems, with more than 50 million units sold in North America alone. During its lifespan, PS2™ not only has pushed video gaming to the forefront of entertainment, but also introduced the concept of an entertainment system becoming a hub in the living room. To-date the PlayStation^®2 system has served as the entertainment centerpiece in many living rooms, accounting for one in three homes across the U.S.

In March 2005, the PlayStation^®Portable (PSP^®) was launched in North America, bringing an unparalleled gaming experience to a handheld platform. PSP^® offers consumers many reasons to take their entertainment on the road—whether it’s to watch a movie, listen to music, view their photos, play games or connect to the Internet. In 2009, we upped the ante, making it even easier for consumers to both take and download content on the road with the introduction of the PSP^®go. PSP^®go represents the latest evolution of the PlayStation^®Portable, specifically designed for the digitally savvy consumer. The PSP^®go leverages PlayStation^®Network and digital content exclusively, offering 16GB of internal memory and expandable storage for all the latest in exclusive games as well as videos, music, and photos.

On November 17, 2006, Sony Computer Entertainment America revolutionized the way games are played and developed by releasing the PlayStation^®3 (PS3™) computer entertainment system. The PlayStation^®3 system reset the bar for entertainment by utilizing a combination of Cell and RSX™ processors, a state-of-the-art Blu-ray player and a pre-installed hard disk drive (HDD). Equipped with basic input/output ports, PS3™ supports a broad range of displays from conventional NTSC/PAL standard TVs to the latest full HD (1080i/1080p) flat panel displays, offering the joy of the most advanced computer entertainment content to homes around the world. These technological advancements coupled with its all-in-one entertainment solution made PS3™ the most advanced computer system, which served as a platform to enjoy next-generation games and the best in home entertainment on the market.

Today PS3™ provides an even more incredible value, functioning as the true “entertainment hub” for the living room and the “must-have” console for gamers. In addition to best in class content offerings, PS3™ combines one of the industry’s best Blu-ray players with built-in benefits such as Wi-Fi and an Internet browser, 160GB or 320GB of storage for photos, movies and music, free access to the PlayStation^®Network and future-proofing firmware updates -- all in one device.

Also in November of 2006 came the launch of PlayStation^®Network (PSN). Since launch, PSN has evolved into a true online entertainment hub with more than 90 million registered accounts worldwide and continues to grow with tons of great new content and services, delivering a seamless connected gaming and entertainment experience across multiple devices and platforms. PlayStation^®Network delivers more ways to instantly play, watch, stream, listen, chat and share, offering the best in games, TV and movies, sports and music. PSN also offers PlayStation^®Plus, a subscription services that allows users to get the most out of their PS3™ console by offering subscribers free games, huge discounts and great exclusives.

On February 22, 2012, SCEA launched the revolutionary PlayStation^®Vita. Deep and immersive gaming is at the core of PlayStation’s DNA, and PS Vita is the latest embodiment of this vision. This system offers a revolutionary combination of rich gaming and social connectivity within a real world context. Wi-Fi and 3G network connectivity on PS Vita, together with various applications including Facebook, foursquare, Skype and Twitter, enable infinite possibilities for users to "encounter", "connect", "discover", "share" and "play" with friends wherever they are. Within the device are a range of features that provide a genuinely cutting-edge, next generation ultimate portable entertainment experience including a 5-inch OLED front display screen, front touch screen and rear touch pad, front and rear cameras, dual analog sticks and Wi-Fi and 3G network connectivity.

Source: http://www.us.playstation.com/