Embattled Announcements as a tool for marketing
July 26, 2009 7 Comments
Few Weeks ago we had the front pages filled with Google announcement on its new operating system, Chrome. (for those of you that did not read about the announcement, Google presented Chrome as the future PC Operating System, instead of Android, reserved for netbooks and phones. See announcement)
Immediately after the announcement, the newspapers , TVs, and Internet followed with comments on how the big step forward given by Google was a trheat to Microsoft. Microsoft counter-announced reinforcing Windows 7 and with a new announcement about free access to Office on the web. Voices of the past broadcasted that Yahoo and Microsoft were getting closer again.
A big debate started in most blogs, editorials, and the like. No agreement on the implications for both companies.
Today little is at newspaper front pages on Crhome, Windows 7, Yahoo & Microsoft entanglement,…
But one thing is clear. Generalist and economic newspapers, journals, TV News gave a lot of free spaces to Microsoft and Google in the form of news, discussions, forecast, opinions, interviews, and so on. Only the experts continue the debate in expert media, but Google and Microsoft have been reinforced in the mind of consumers and decision makers. On the meanwhile, their competitors got little if not coverage.
It pays to start a dialectic battle around a product that me be real in an undetermined future (History teaches that it is an undetermined future time, even if they announced potential dates).
Who was the marketing agency behind both companies? Did they agree on performing this battle in the media to reinforce their image of “the only companies in the game”? Does it pay to co-operate among competitors in setting up these battles?
Manuel Nó
About Manuel Nó
Pretty interesting…it’s a really good strategy.
Sure it is a communication strategy, but hard to believe it is a marketing agreement
Manuel this is an interesting reflection. There is probably much of marketing strategy. In this sense it comes to my mind those that drives, for example, the owner of Ryannair (flights with people standing up, without seat); and, let’s recognize, why not, they can be good marketing strategies.
Regarding the product battle, Windows 7 vs. Chrome, we will see what happens. Thinking as a domestic user (not as a enterprise user) the key will be an easy handling for the users: usability and simplicity. Up untill now there have been many attempts of Linux versions to be adopted by end users but they lack some maturity from the point of view of user simplicity. A boost is also needed in the solutions and applications available for the platform and they should be settled easily without being an expert. In my opinion this has been the key strength (well, in quotes) of Microsoft. We should not forget another player in this field, I mean Apple. Although it’s certain that it is unique from the user experience it’s also true that it had trouble in order to be a reference as a domestic user.
Whatever it happens a beautiful battle between two giants is approaching.
Carlos,
thanks for your interesting comments.
By the way, you mention Apple, which is a very interesting company. It has been working with propietary OS and hardware all along. Do you think we’ll see them generating OS and other tools for third party hardware?.
It’s an interesting view. However, IMHO as a marketeer, I’d never give a chance to my main competitor on leveraging my position.
Therefore my understanding is that this is more a marketing consequence, than a marketing strategy.
If I were for this kind of strategy, being Msoft or Google, there is plenty of opportunities to generate noise, even with controversial subjects, without the need to include a competitor.
Good selling anyway for the media including online ones and its market leader, Google.
Manuel,
I agree with your comments. I also think though there was a bit of the new technology leaders challenging the older ones operating here. I believe Google sees their model with chrome to go after the established market share leader of windows. Windows represents on of the last sources of revenue and profit in the PC industry. Google’s proven ad auction model can challenge this and Google had little to lose to make an overt challenge to Microsoft. This of course was not the first challenge – that being google apps in this space.
Given Google’s challenge, Microsoft had no choice but to respond – and to their credit they did quickly. And yes, the result is free advertising for both thanks to the media capitalizing on a classic David and Goliath story.
I agree this will be interesting to watch between Microsoft and Google – but I also think Apple bear watching here for two reasons. One is the extent to which your next computer is a PC vs a smartphone. The other is that while “proprietary” MAC OS is based upon BSD and benefits from low / zero cost open source models for the OS, web kit, etc. In addition, and perhaps most importantly, Apple’s products just work with an extremely compelling user experience that transcends the Mac and the iPhone. (Yes, I’m a recent convert from Vista 64). I think another game changer would be for Apple to allow Mac OS X to run on other vendors hardware. I know this is heresy in Cupertino, but this could enable Apple’s share of the PC market by OS to grow dramatically. BTW, I counted them out a few years ago when they were at 2-3% market share, but they’re now number 4 in the market at about 8%…quite an accomplishment….
Manuel, it is an interesting reflection. From my point of view this is a real battle, I mean Google is trying to be on top so at last it has to be compared with Microsoft, which is currently the one.
Regarding Europe version, Microsoft was about to launch Windows 7 with a feature that allows to choice for navigator, not only Explorer, but after Chrome announcement Microsoft comes back with the supresion of Europe version. That’s only one example to illustrate their fights for market.
I’m not sure if it is a marketing strategy or just a consecuence because Microsoft is the leader. As a leader someone becomes a reference and generalist media need a reference to explain this kind of news to non expert audience.
In any case, I’m sure that Google and Microsoft marketing areas are currently working hard to go further…