After years of battling out Apple over issues like technology, ease of use, compatibility and quality, Microsoft seems to have acceded all those issues to Apple and has gone “all in” on one point:
We’re Cheaper.
Microsoft’s new television ads, urge people to buy windows computers because they are cheaper than Apple’s.
Likewise, for its Zune Mp3 player, Microsoft’s advertising strategy is to tell you how expensive it is to fill up an ipod.
The new Tune commercial doesn’t talk about how much better their player or system is than a ipod, but points out that it will cost $30,000 to fill up an 120g ipod player. (as opposed to getting a Zune pass for $14,95 a month for 10 songs).
Personally, I don’t think this is a good long term strategy for a technology company.
Its one thing for example, a travel company to brand themselves as being a place to book “cheap” travel, but a completely another for a technology company to go the route of; our stuff isn’t as good but we’re cheaper than the other guys.
All and all its a very interesting stratery and maybe the only choice for Microsoft if it can’t compete on any other level.
Is this the beginning of the end of M$? If they don’t change their strategy and the way they do business – IMHO – yes.
An interesting, more accurate apples-to-apples comparison between a PC and Apple computer revealed that–if the PC’s MS used in their commercials came with a similar set of operating software as the Apple did–that their prices are actually about the same.
Most likely, this is just a marketing method to build /update list of buyers. MS realizes that once they have a customer, even a cheap one, they can potentially sell to them for life.
I disagree – I think the TV commercials are great. They do a very good job of showing just how expensive macs are considering what you get compared to a PC. They seem to be aimed at young people who are more likely to be going to macs anyway.
I won’t try to compare the quality of one vs the other, but I think getting the word out that you can buy a decent PC for $700 is a an excellent marketing point.
I think it makes sense, a lot of people are cheap, domainers are a perfect example of people who are cheap IMO, same with people who use social networks, “OH you better never charge me while I use your site to try to market what I do for a living, and oh by the way that’s not free.”
Sorry to stray from the topic, but I was wondering what WP plugin you are using to manage your ads? I’m looking for a good plugin to manage direct ads on my blog. Thanks.
The pricing strategy only works if the product works.
Microsoft had me as a customer for life too until there stuff stopped working and become to difficult to operate.
Exposing your customers to your product can be the worst thing you do if your product sucks.
Microsoft sucks and they are winning the race to the bottom of their business, right behind Yahoo.
Microsoft is still the big bully in technology and people won’t put up with that crap forever, just look at GM.
Even though I am on XP, I made sure not to “upgrade” to Vista. I never use IE and try to avoid Microsoft whenever I can and I see no reason to change my anti-Microsoft practice.
Is the younger generation going to go to Microsoft? Nope. Ipods. Iphones. Cellphones. Microsoft isn’t a Player in any of those so I don’t see them pulling in the younger generation.
Just sit back and watch Ballmer grind Microsoft into the ground.
MHB – What are they supposed to do, not try to sell their product?
I’m not saying they have the best products, but the commercials are good and show that there is a big price difference. That is the exact same strategy I would use if I was them.
And the more people I know who get macs, the more complaints I hear.
Gordon
Of course they are suppose to sell their product, and they have spent a ton over the years doing it.
I’m just noting that Microsoft used to talk about how great Windows was, how easy the machines were to use, how it was compatible with all software, etc got slammed by Apple for a year about how unrelable Vista is, how much easy a Mac is, the applications that Mac carried, etc., and Microsoft answer is, hey we’re cheaper.
So maybe its a good sales strategy in the short run but for a tech company I think it will hurt them long term
gotcha, thanks.
The main factor driving this is the bad economy. There is more cost cutting / low price advertising now than ever before, and it is working, though as many point out is a bad long-term strategy.
Secondary factor is that they are losing market share to Apple. And the hidden message behind these ads is that Macs are for rich elitists, which kind of plays into Apple’s “I’m a Mac / I’m a PC” commercials, where sometimes the kid comes off being too smug and the bumbling older PC guy almost sympathetic.