Page 116 - Marketing Management

COLLECTING INFORMATION AND FORECASTING DEMAND | CHAPTER 3 93

Marketing Excellence 1995 and Windows 98 in 1998, using the slogan, “Where
Do You Want to Go Today?” The slogan didn’t push indi-
>>Microsoft vidual products but rather the company itself, which could
help empower companies and consumers alike.
During the late 1990s, Microsoft entered the notori-
ous “browser wars” as companies struggled to find their
place during the Internet boom. In 1995, Netscape
launched its Navigator browser over the Internet.
Realizing what a good product Netscape had, Microsoft
launched the first version of its own browser, Internet
Explorer, later that same year. By 1997, Netscape held a
72 percent share and Explorer an 18 percent share. Five
years later, however, Netscape’s share had fallen to
4 percent.
During those five years, Microsoft took three major
steps to overtake the competition. First, it bundled
Internet Explorer with its Office product, which included
Microsoft is the Excel, Word, and PowerPoint. Automatically, consumers
world’s most successful software com- who wanted MS Office became Explorer users as well.
pany. The company was founded by Bill Gates and Paul Second, Microsoft partnered with AOL, which opened
Allen in 1975 with the original mission of having “a com- the doors to 5 million new consumers almost overnight.
puter on every desk and in every home, running Microsoft And, finally, Microsoft used its deep pockets to ensure
software.” Since then, Microsoft has grown to become the that Internet Explorer was available free, essentially “cut-
third most valuable brand in the world through strategic ting off Netscape’s air supply.” These efforts, however,
marketing and aggressive growth tactics. were not without controversy. Microsoft faced antitrust
Microsoft’s first significant success occurred in the charges in 1998 and numerous lawsuits based on its
early 1980s with the creation of the DOS operating sys- marketing tactics, and some perceived that it was
tem for IBM computers. The company used this initial monopolizing the industry.
success with IBM to sell software to other manufacturers, Charges aside, the company’s stock took off, peak-
quickly making Microsoft a major player in the industry. ing in 1999 at $60 per share. Microsoft released Windows
Initial advertising efforts focused on communicating the 2000 in 2000 and Windows XP in 2001. It also launched
company’s range of products from DOS to the launch of Xbox in 2001, marking the company’s entrance into the
Excel and Windows—all under a unified “Microsoft” look. multibillion-dollar gaming industry.
Microsoft went public in 1986 and grew tremendously Over the next several years, Microsoft’s stock price
over the next decade as the Windows operating system dipped by over $40 a share as consumers waited for the
and Microsoft Office took off. In 1990, Microsoft launched next operating system and Apple made a significant
a completely revamped version of its operating system comeback with several new Mac computers, the iPod,
and named it Windows 3.0. Windows 3.0 offered an im- the iPhone, and iTunes. Microsoft launched the Vista op-
proved set of Windows icons and applications like File erating system in 2007 to great expectations; however, it
Manager and Program Manager that are still used today. It was plagued with bugs and problems.
was an instant success; Microsoft sold more than 10 mil- As the recession worsened in 2008, the company
lion copies of the software within two years—a phenome- found itself in a bind. Its brand image was tarnished from
non in those days. In addition, Windows 3.0 became the years of Apple’s successful “Get a Mac” campaign, a series
first operating system to be preinstalled on certain PCs, of commercials that featured a smart, creative, easygoing
marking a major milestone in the industry and for Mac character alongside a geeky, virus-prone, uptight PC
Microsoft. character. In addition, consumers and analysts continued
Throughout the 1990s, Microsoft’s communication to slam Vista for its poor performance.
efforts convinced businesses that its software was not In response, Microsoft created a campaign entitled
only the best choice for business but also that it needed “Windows. Life Without Walls” to help turn its image
to be upgraded frequently. Microsoft spent millions of dol- around. The company focused on how cost effective
lars in magazine advertising and received endorsements computers with its software were, a message that res-
from the top computer magazines in the industry, making onated well in the recession. It launched a series of
Microsoft Windows and Office the must-have software of commercials boasting “I’m a PC” that began with
its time. Microsoft successfully launched Windows 95 in a Microsoft employee (looking very similar to the PC