Sony Playstation 3

[pic] [pic] Executive Summary3 The anatomy of the product4 Step Factors6 Social Environment6 Technological Environment7 Economic Environment8 Political Environment8 Buying behaviour sony playstation 39 AIDA9 Attention10 The decision making process10 Environmental influences11 The Abell-Model: Sony Playstation 312 Marketing segmentation14 Demographical segmentation14 Psychological segmentation15 Recommendation16 Appendix17 Executive Summary “To become a leading global provider of networked consumer electronics, entertainment and services. ” That’s the mission of Sony, producer of the Sony Playstation.

Sony, information and communication, Semi conductors and Electronic is a Japanese corporation that is manufacturer of electronic. It was founded in 1947 by Masaru Ibuka who was a Japanese electronics industrialist. At that time Sony was called “Tokyo Telecommunications Engineering Corporation” in 1958 they changed it. Started off as a small electronics company with 20 workers Sony grew to be one of the biggest and leading electrical giants with over 167. 900 workers. Major products consists of: Audio & Video devices, Televisions Components.

In 1988 Sony and Nintendo working on The Super disc which would be a part of the Nintendo but due some differences about it they parted their ways. Sony then used the modified version of the Super disc to create their own game console. And in 1994 that’s when it all began Sony introduced the Playstation on the market. And from the start it was a huge success. Sony at that time had a goal to make the gaming-industry more popular, in which they succeeded. More then 40 million households has a Playstation at the end of 1988. Which makes Sony Playstation the best selling game-console.

After the success of the Playstation 1 its successor Playstaystion 2 came. With the continues technological advances it didn’t took very long before Playstation 3 arrived one of the hottest multi-media devices ever made till now. We will be focussing on the latter Sony PlayStation 3 was released by Sony Computer Entertainment in 2006. Sony Computer Entertainment also develops, publishes, markets, and distributes software for PlayStation 3. PlayStation 3 is a gaming console giving consumers the ability to play not only PlayStation 3 games, but PlayStation 1 and 2 games as well.

PS3 also has the ability to read and play DVD’s and CD’s and comes with a parental lock feature. It also features an Ethernet port which enables users to play against others on a world wide spectrum. PlayStation 3 offers something for everyone no matter what you’re into. Today, Sony is positioned among the top five global brands worldwide with $8. 87 trillion a year. “Sony’s sales performance for the next year is expected to see revenues rise by 1 percent to $9 trillion” (Sony Revenue and Profits Rise as Europe Becomes Biggest Games Market) [pic] The anatomy of the product

The Playstation 3 is of course a well known game console. But is it actually just a gaming console or does it have more to it. Many call it a gaming console with multimedia-home entertainment possibilities, or is it a multimedia-home entertainment system with gaming possibilities. You can call it whatever you want but it is certainly isn’t a device that supports games only. One of their slogans is ‘’It only does everything’’, I think that makes even clearer that the Playstation3 isn’t just a gaming console. Gaming is of course the main core of the product. So what is there to the Playstation3 other then gaming?

Well there is quite a lot actually, besides being able to play games, the Playstation 3 is also able to read blu-ray discs. You can also stream online movies and series to watch at home on your television. This is made possible through your internet connection. As long as you have an internet connection you can broaden the possibilities of you Playstation 3 a lot. Like with gaming, you can play against or along your friends. This makes it competitive. Like stated before there is the possibility to stream movies and series trough a service they made possible especially for the Playstation 3.

The things that are written above are all possible on the Playstation 3, but with an onion ring diagram we can sort those possibilities out in to a clear picture. This is done by describing the products different parts and possibilities and also dividing the product in to: the core product, the tangible product, augmented product and potential product. Core product:The core product is of course the gaming experience and the entertainment. Tangible product:The tangible product is the Playstation 3 itself, the hardware, The controller and cables.

Augmented product:This is the ting you receive with a Playstation 3 but you can’t actually touch. In the case of the Playstation 3 it is of course the fun, the family time. And also the movie entertainment experience. Potential product:With the Playstation 3 it is quite difficult to come up things to add to the possibilities you already have. But next to gaming, movies it would be possible to have a computer connection so you can surf the web. This is discussed further in the recommendation. DEZE HAD IK AL UITGEBREID JE MOET KIJKEN IN EEN VAN DIE LAATSTE VERSIES. Step Factors

Step stands for “Social, Technological, Economic and Political” and this is part of the external environment which a company does not have control over. So they will try to develop marketing strategies in where they try to adapt to these factors in their advantage. [pic][pic] Social Environment The social environment part focuses its attention on forces within society such as family, friends, colleagues, neighbors and the media. Social forces affect our attitudes, interest and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase.

One of the ways in order to establish some sort of a connecting with its customers is to understand the social environment. You have to find out on what your focus group will be, will it be on men or woman? Between what ages? What are their interests? What drives them? Etc. To sum it all up what are there needs and wants. By getting the knowledge of what your customers and potential customers needs are you can create a product perfectly designed and targeted on the desires of the customer. Sony is monitoring their customers and potential new customers well thanks to the internet.

They keep a good contact with their customers threw different social websites which they update on a daily basis. Lets say you are a big fan and you want to know exactly when something new is being published on you can just follow them and the moment its posted you will get a message on your phone and you can check it out. They can be followed on two of the most popular social interaction websites Twitter and Facebook. This way of communicating creates a social connection with the consumer with Playstation 3. This aid is for them perfect to derive various ideas and needs the customers and future customers admire.

This gives them the opportunity to create something that is moulded by the customers them selfs. Human beings are constant changing depending on their living environment their interests changes their look on life changes their attitude changes. Family, friend, media, religion, neighbours all affect us and shapes us who we are as human beings. Some people might think that Playstation 3 is a childish and only for kids others might think the opposite. As a company you must adapt to these kind different ways of thinking finding a perfect way to offer your product and services to try to satisfy both needs.

Your will risk the chance of losing market shares and the demand of the product will decrease by not responding to the changes in the society. Technological Environment Unsurprisingly also a big factor is technology, as you are probably aware technological advances have greatly changed the manner in which businesses operate. Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between stakeholders. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment.

We are living in a technological advanced era. We are confronted with it all the time during our daily routine at home, school, work, outside it cannot be ignored. Therefore it is important for a company to follow the newest technological updates along with time. This factor is essential for the success of the company to for fill the requirement and needs its customers eventually by doing so this will lead towards the success of the company. Especially for Sony as it a company depending on it technology. Over the past years Sony did an excellent job on improving Playstation from 1 to 3.

At the beginning Playstation 1 was just a video game console you could only do that with it and the quality at that time was reasonable. If you compare it what we can do now with the Playstation 3 its incredible. Its much faster, you can watch movies on it, you can even go on the internet on it, you can go on Facebook and talk with your buddies, it has a improved graphical user interface you can even view pictures you made on your holiday on it. Playstation went from a ordinary game console to a multi-media system. For example the Internet is having a profound impact on the marketing mix strategy of organisations.

Consumers can now shop 24 hours a day from their homes, work, Internet cafes and via 3G phones and 3G cards. As said before this internet connection is so big nowadays, that as a entertainment product you cannot lack this ability. People nowadays want to be connected 24/7 and if you implement this in the product it keeps the consumers satisfied. Technology doesn’t stop there it also helps the company from within will all kinds of new software and hardware it’s much easier to manage the business. Workers are also able to log in from home on their company network so homework is much more accessible.

Whenever there will be a new Technological improvement Sony will make work of it and will try to implement it in any sort of way in its product to satisfy the needs of its consumers. Because technology is changing in such rapidly customers will have higher expectations of the product Sony might have to work harder to achieve that. And an even smarter move is creating new technology yourself. Economic Environment An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence.

Conversely a “booming” or growing economy will have low unemployment, high spending power and high stakeholder confidence. A successful organization will respond to economic conditions and stakeholder behavior. Furthermore organizations will need to review the impact economic conditions are having on their competitors and respond accordingly. The current state of the economy plays a huge role on the success and how a company makes its decisions based on the current state. With the recent recession people where losing their jobs some even their homes.

So people had less money to spend on secondary needs such as a Multi-Media System for entertainment purposes unless you were addicted to it and hand to feed your urges. Whenever Sony brings a new product on the market they have to keep in mind the purchasing power of its consumers and base their products prizes and quality bases upon that. It’s also commonly known that labour is cheap in some country in Asia like China, Japan and Thailand. Sony manufactures most of its products in China and Malaysia because its cheaper than in another European they can make the most profit by doing this.

Most technological products are developed and created in Asia, so logically such products are mass-produced overseas. Political Environment The first element of a PEST analysis is a study of political factors. Political factors influence organizations in many ways. Political factors can create advantages and opportunities for organizations. Conversely they can place obligations and duties on organisations. For example Market regulation, what is prohibited to publish and what not will there a explicit material on it does it need a age restricting? Taxes. Trade agreements. Restrictions.

Violating the law can lead to sanctions such as fines, product being banned even imprisonment if it is a severe case. Sony is of course not a company that does its business outside the rules of law. If they get any fines of course they can pay them but still even though it would probably not hurt them, they would still come in the press a bad way. This can damage the image of the company, by presenting itself in a bad way. Which of course leads into losing a part of your market customers. Buying behaviour sony playstation 3 Consumers buying behaviour is one part of the whole marketing system.

Buying behaviour can be categorized in different aspects. We will explain those aspects one by one and apply them on your product which is the Sony Playstation 3. AIDA Aida stands for Action, desire, interest and attention and it plays a huge roll in the decision making process. This model try’s to show how people can be persuaded into action by just 4 simple steps. Step 1 Attention: In the first phase the target group gets exposed to the message. This can be an commercial for example. The goal of this phase is that the target group notices the message.

Step 2 Interest: In this phase the interest of the target group should be caught. They need to think that the message is relevant for them. Step 3 Desire: The next phase is all the desire for the product. The target group should next the interest in the product also have the intention to perform action. Step 4 Action: In the last phase the target group performs actually performs the action and the goal of the message has been accomplished [pic] Attention How does Sony attract the attention of the people using their commercials/advertisement.

Well Sony has to attract the attention of people by showing them what the Playstation 3 is and what is does by showing the console on screen and showing some gameplay footage of different kind of games, to target multiple groups. Interest What Sony does to create interest in the people through their commercials, are attraction many target groups at one time. It starts with their slogan: “Playstation, It only does everything”. This already creates the interest that this console can do many things. Also they target multiple groups together by showing that the Playstation 3 can be used as gaming console, PC and also as a Blue Ray player.

Here you can see that many people will get what they want in one console all together. This way Sony does a great job showing people that this console is for all ages and all kinds of people. Desire Desire, how does Sony creates desire into people to get them buying the Playstation 3. Well what Sony does is triggering the mindset into people that makes them to want the console. They do this by showing people what they want to see and exceed expectations. This will great a desire into people which makes them wanting to buy the console. As it is far better developed as the current consoles there are.

In this case our Playstation 3 is already on the market for some years. So the commercials aren’t that effective anymore since the Playstation 4 will come out withing 2 or 3 years. Nevertheless the Playstation 3 is selling well at this moment. Action So when people get the desire to buy the console they go over into action and actually buy the Playstation 3. Sony does this in their commercials by giving a release date or store put the console in sale at a certain moment. This will attract the action trigger faster than it would if the consoles were not on sale, as the Playstation 3 is the most expensive console there on the market.

The decision making process Customers have to make decisions before they buy a product, for that decision they need to be aware of the problem they meet to buy the product that contains the solution for that problem. This is the so called problem recognition. Sony Playstation 3 is being bought by millions of people around the world. Consumers put their mind on this product because once they play a game console. They must have to upgrade it to the new generation of the same console. After the problem has been recognized customers have to find the solution for the problem they are facing.

The customer has to ask his/herself what, where and how can the product be obtained. The customer Customers search for the information. Sony Playstation 3 makes a lot campaigns for the customers to give the customers the information they need to buy the product, Playstation 3 is each year present at the game conference to encourage people buying the product. They do this by giving the players the pleasure they want to attract them and buy it. Once the needed information is available, consumers evaluate the information they have obtained.

Consumers check the information they have and use the useful information only, after that they have only a list of potential options to an evoked set. Consumers buy the Playstation 3 because they have been overthrown by adds and other external influences, the consumers is at this point checking if the price he/she has to pay for the product will satisfy his/her needs. The consumers now has a list with the information he/she needs for the product he/she likes to buy. Now comes the decision making process where the consumer chooses the seller he/she thinks is best to satisfy the need for the product.

Last but not least the consumers makes a decision buying the Playstation 3 at the store nearby or where ever the customer wants. This is only when the customer thinks that this product will satisfy its need. Post-purchase evaluation is the last part of the decision making process. This is where the customer evaluates the product that has been bought, the customers is now seeking the satisfaction that has been promised to the buyer. In our case the Playstation 3 has been a satisfying product for most consumers, the only thing that kept most people from buying it was the extremely high price that was asked for it.

But once the prices dropped the Playstation 3 become more popular and had a Positive post-purchase evaluation. Environmental, Psychological and Social cultural. In every nation people get influenced by others, it could be family, friends or others. There are also different ways of influences, you have the environmental influences, the psychological influences and the social cultural influences. Environmental influences Decision making is not separate from the environment the decisions are made in. The consumers doesn’t have to be conscious of the fact that the environment is a part of the decision making process. Social cultural influences

Individuals are influenced by various social groups to which they belong, they also enhance their status within those groups. For Playstation 3 the groups differ because the individuals who are influenced are influenced by friends and family from the age 12 to the age of 21. Marketing research that has been done by Mintel proofs that the price has become a key to determinate the purchasing choice, this has been done by looking at various consumer groups who has been given various offers at which they look for the best price opportunities. Technological influences Technology has a large influence on the decision-making process.

The Playstation organization tries to create personal relationships with their customers. They try do this by listening to their customers requests. Playstation is every year part of the Games Conference Where they introduces their new technology and give the target group who’s interested the opportunity to test the new technologies introduced by Playstation. For example this year the Playstation introduced the Playstation move. Economic and competitive influences Playstation 3 is a very competitive product as it has the privilege to be the first console introducing blue-ray disc.

This improvement has led to successful sales of the Playstation 3. Once Playstation 3 was launched the sales prices where high, the console was sold for an average price of €500,-. This price was too high for many customers and this became a difficult issue for Sony Playstation. What they did was the following, they introduced the Playstation 3 slim which was lighter and smaller than the first edition, although it delivers the same quality as the first edition. This console is being sold now for the price of €300,- which attracted a lot of customers, especially the younger target group between 12-18 years where able to buy this product.

After this success Sony sold a total of 41,6 million units as of (30-12-2010). After this success Playstation 3 introduced the Playstation move at which they tried to get parents of the children also playing this console, the reason behind this new technology was to get the same effect the Nintendo Wii console has on parents and other adults. The Abell-Model: Sony Playstation 3 To start with, Sony Playstation finds itself in the entertainment-segment of the market industry. Throughout the years it has been a sustainable and reliable brand when it becomes to creating a multifunctional product, usable for almost every person in the world.

When you talk about Playstation itself playing a game, a DVD or browsing on the internet, it has never been a problem at all. Sony is always trying to innovate new things and surprise the people with technology they have never imagined. We have to tell that the Abell-model shows what kind of innovations Sony wants to make in this case. This will give us a clear view about the upcoming technology like the Playstation 4. Also Sony introduced this June the Playstation Vita, which is basically the next generation handheld console. It contains better graphics and can be used almost the same things the Playstation 3 already does.

This also tells that Playstation is never lacking behind if it comes to technology. Target Audience In this model we are going to look at Sony’s latest console, the Playstation3. The Playstation3 is an understatement for what Sony demands from their product these days. Multifunctional, usable for every person, young and old, male and female, and of course supporting the latest techniques. Sony made a big step concerning their target, building in a Blu-Ray player in the Playstation3 makes it useable for watching movies in the best quality possible, and it even supports the upcoming 3D technique.

By taking this step, they have put the console on the market as a good alternative for regular DVD/Blu-Ray players. This development automatically resulted in an extended and even wider target audience than it already had. Needs of the consumer These days 9 out of 10 people rely on the newest techniques in every segment possible in the market. Especially when it comes to high-tech creations in the entertainment business, people expect the best. Sony has made a certain name in the last decade, regarding Playstation.

After Nintendo it is not strange to say it has been the market-leader when it comes to game consoles. Before the Playstation3 came out, Microsoft introduced the Xbox 360. A relatively cheap console supporting mainly games, a marketplace, DVDs and social media. To be certain of proper sales, Sony had to come with a product that could do the same, and more. The first Blu-Ray DVD-players came on the market, and was announced as a must have to display video-material on the best quality ever. The consumer was not sure, until Sony built it in the console itself.

Making the Playstation3 more multifunctional, and satisfying the consumer’s needs by taking away their doubts about only having to buy a Blu-Ray player without knowing if it had that big of a benefit. It went well, people reacted enthusiastic and the Playstation3 rapidly became a hit. Nintendo was the first that tried, again, something new. The Wii-console made it possible to play games, relying on the movement of the person playing. A natural reaction came, making Sony and Microsoft copying the technique on their own way. The Playstation3 received the accessory Playstation Move.

Making the loyal Playstation3 fans able to move their way into a new gaming-experience. Future The consumer is going to be treated well, when it comes to entertainment. They already have the possibility to watch 3D-movies in the theatres, and with the 3D-readyness that is already put in the Playstation3 itself, it will not take long before 3D-material will take over the regular living room. Every demand the consumer can make, is served. And you can be sure that after this, a Playstation4 will take over control to grant people their demands among the newest techniques available at that time.

Playstation 4 has to have good security when it comes out because people are now eager for the safety of their products as the Playstation network was hacked a while ago. This had a great impact on sony’s security systems. So Sony has a lot of work to do regaring the production of the next generation console, which will be the Playstation 4. And their are rumors going on the internet that this console will be announced on the next E3 wich is the place to be when it comes to announcemts of new games and consoles.

So as we already mentioned the future for the next generation gaming consoles is bright, and especially sony because they have already the best graphics and the blue ray system. Which got them one step further than Xbox and Nintendo. Marketing segmentation Market segmentation is a way to allow companies to divide its customers into different groups. This is done because a company wants to understand their potentially new customers and tries to satisfy their needs. Demographical segmentation In demographical segmentation you characterize the human population. The following segments apply: Gender

As regarding to the gender mostly is male but as the gaming industry is growing more and more females are getting more interested in it so the numbers of female gamers are growing as well. Age Over the past years gaming has changed enormously it isn’t seen as something childish. With the current games available everyone from 6 to 66 is able to play them but the major focus is still on the teenagers and young-adults leans towards 12 and 28. Household The household type might not be very important for the product. However having a child or teenager in the family might have an impact on the buying behaviour of the family.

Profession The profession of the customer, in theory, is not important because whatever the profession is, the goal is to make the product attractive for everyone. Education The same as the profession, the education of the consumer is not of great importance. Psychological segmentation In Psychological segmentation you divide the consumers into psychological characteristic. The following segments apply: Lifestyle Gaming should be one of the main lifestyles that belong with the product. It doesn’t matter if it is a hardcore gamer or a casual gamer. Gaming now is also commonly used within families as a special family occasion.

Standard and Values The customers have developed high standards over the past years. Playstation went from 1 to 3. From an ordinary game console to a multi-media device. So the standards and values are still growing. When ever a new technology comes out the customers wants to see it in the product. Interests The customers have a certain amount of interest in gaming but also in video and movies. With the Playstation 3 you can play games and watch Video/Movies which makes it very appealing for the customers Behaviouristic segmentation In Behaviouristic segmentation is based on actual customer behaviour toward products.

The following segments apply: Brand loyalty The older generation tends to be more loyal to the brand but the younger generation tends to be not. They change their opinions all the time their friends play a huge roll in this. The Usage The customers will use the Playstation as much as possible because of the easy-to-use concept. The Playstation can be brought easily along on vacation if you think you might be bored. Recommendation Playstation 3 is a product that is already very successful as it is nowadays. The Playstation 3 has a target group between 12 and 21 years old.

This group is influenced by many factors like the environmental influence which is e. g. Europe, America. Also the sociocultural influences play a large part in the decision making process in the marketing system of Sony’s Playstation 3. It is obvious that the Playstation 3 has something things that they could improve. The first thing that they can improve is to lower their production costs to make the console cheaper for sales. This is because the price of the Playstation 3 is still not good enough to target the people who have less money to spend but still want the device.

Secondly the Playstation 3 could improve some of their technological factors, like the online connection system which is free, but has some connecting issues at places where the internet connection is weak. With the upcoming Playstation 4 Sony has to come out with something revolutionarily that will be mind-blowing. Their competitors Nintendo WII and Microsoft Xbox aren’t doing nothing. What they could do which would be very cool being able to play as yourself in a video game with 3D-Techonolgy if they would be the only game-console in the market that offered that that would give them a huge advantage over Nintendo WII and Microsoft Xbox.

Appendix Business Environment, Ian Worthington, Chris Britton ( 2009) http://books. google. nl/books? id=09uqSNHNT9EC&pg=PT506&lpg=PT506&dq=environmental+influences+playstation+3&source=bl&ots=tfx12AgD6d&sig=n0JokImX7mm6FNqY4AE_8iCiWfk&hl=nl&ei=DP4tTfebBoGhOobsjdQK&sa=X&oi=book_result&ct=result&resnum=2&ved=0CCQQ6AEwAQ#v=onepage&q&f=false Consumer buying behaviour http://www. tutor2u. net/business/marketing/buying_decision_process. asp History of Sony Playstation, Mary Bellis http://inventors. about. com/library/inventors/bl_playstation. htm Obituary: Masaru Ibuka, James Kirkup, 22 December 1997 ttp://www. independent. co. uk/news/obituaries/obituary-masaru-ibuka-1290247. html PlayStation 3 Gets First In-Game Facebook Integration Eric Eldon, 23 March, 2010 http://www. insidesocialgames. com/2010/03/23/playstation-3-gets-first-in-game-facebook-integration/ Play station Information http://playstation. about. com/od/ps3/a/PS3SpecsDetails_3. htm http://www. sony. net/SonyInfo/CorporateInfo/ http://www. sony. net/SonyInfo/CorporateInfo/History/history. html http://www. sony. net/SonyInfo/IR/info/strategy/message. html http://www. playstationmuseum. com/Features/History/History1998. htm

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