Marketing mix of IBM....4p's.

About International Business Machines Corporation(IBM) :







is an American multinationalinformation technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed "International Business Machines" in 1924.

International Business Machines Corporation (IBM) is an American multinational information technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed "International Business Machines" in 1924.

 Business Machines Corporation’s (IBM) marketing mix facilitates brand development and market reach, with emphasis on core product offerings. A company’s marketing mix, also known as 4Ps (product, place, promotion and price), is the set of strategies and tactics applied for the successful execution of a marketing plan.

 In this case of IBM, the global information technology market involves tough competition, which imposes significant challenges or barriers to growing revenues and gaining market share (Read: Porter’s Five Forces Analysis of IBM). The company continues to streamline its business to address such challenges. For example, Big Blue focuses its resources on core business operations that represent the highest potential for growth, given current market conditions.

 Also, the company relies on its high-value brand to achieve results in implementing the marketing mix. This high-value brand is one of the major strengths of the business, as shown in the SWOT analysis of IBM.



Business partners must consider the influence of IBM’s marketing mix on their operations. The pertinent strategies and tactics affect the way the company develops its partnerships, especially for the purpose of gaining a bigger share of the market for information technology products.

 For example, the marketing mix’s strategies and tactics influence authorized IBM distributors’ interactions with target customers. Thus, business partners can use the company’s 4Ps to guide their respective approaches in growing their operations.

Marketing mix of IBM:

Product strategy of IBM:


IBM’s organizational outputs or products and their characteristics are determined in this aspect of the marketing mix. Products are what the company sells to target markets for information technologies. 

The set of all products, called the product mix, defines the other areas of the business organization, such as research and development (R&D) and manufacturing. For example, product suitability based on market demand affects the company’s revenues, and product design and features influence organizational processes involved in production or manufacturing.

IBM also hosts the industry-wide cloud computing and mobile technologies conference Inter Connect each year.

 In this case, the product mix has the following product lines, which are represented as business segments in IBM’s annual reports:

•Cognitive Solutions
•Global Business Services
•Technology Services & Cloud Platforms
Systems
•Global Financing


Cognitive Solutions are products that help businesses process large amounts of data into insights for managerial decisions and, consequently, competitive advantage. For example, IBM’s cognitive systems help clients develop effective strategies by determining patterns in consumer behaviors based on data collected through sales transactions. 

On the other hand, Global Business Services include consulting, application management, and global process services. The company also offers infrastructure services, technical support services, and integration software under the Technology Services & Cloud Platforms product segment.

              In addition, Systems products are focused on servers, storage, and operating systems software. Moreover, client financing, commercial financing, and remanufacturing and remarketing services are offered as part of Global Financing. IBM’s organizational structure reflects the focus on these core product lines. Each product line is represented as a division in the firm’s corporate structure. This aspect of IBM’s marketing mix or 4Ps indicates a shift of emphasis toward services, especially online services.

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Place/Distribution strategy in IBM’s Marketing Mix:



The venues, channels, or places used to distribute IBM’s products are identified in this aspect of the marketing mix. These places affect the company’s strategic effectiveness in reaching target customers in the information technology market. 

In this case, IBM uses the following channels or venues to transact with customers and deliver its products to the market:

•Official Website
•Business Partners
•Delivery Centers
•Warranty Service Providers


IBM’s official website enables customers to access valuable information about the company’s products. The website is a convenient way to communicate with target clients around the world. Customers can also create and pay for accounts to use the company’s cloud-based services through the official website. 

On the other hand, business partners are the company’s traditional way of reaching its target market. For example, business partners like authorized distributors are major channels for distributing IBM products, even before the advent of the Internet. 

Delivery centers facilitate the delivery of some of the company’s products, such as Global Process Services, which are part of the Global Business Services product line. Furthermore, the firm has warranty service providers for current customers’ systems maintenance and related service needs.

This aspect of the marketing mix influences the location strategy in IBM’s operations management.

IBM’s Promotion strategy (Promotional Mix):





International Business Machines Corporation’s (IBM) marketing mix facilitates brand development and market reach, with emphasis on core product offerings. A company’s marketing mix, also known as 4Ps (product, place, promotion and price), is the set of strategies and tactics applied for the successful execution of a marketing plan. 

In this case of IBM, the global information technology market involves tough competition, which imposes significant challenges or barriers to growing revenues and gaining market share (Read: Porter’s Five Forces Analysis of IBM). The company continues to streamline its business to address such challenges. For example, Big Blue focuses its resources on core business operations that represent the highest potential for growth, given current market conditions.

 Also, the company relies on its high-value brand to achieve results in implementing the marketing mix. This high-value brand is one of the major strengths of the business, as shown in the SWOT analysis of IBM.



Business partners must consider the influence of IBM’s marketing mix on their operations. The pertinent strategies and tactics affect the way the company develops its partnerships, especially for the purpose of gaining a bigger share of the market for information technology products. 

For example, the marketing mix’s strategies and tactics influence authorized IBM distributors’ interactions with target customers. Thus, business partners can use the company’s 4Ps to guide their respective approaches in growing their operations.



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IBM’s Prices and Pricing Strategies:

This aspect of the marketing mix specifies IBM’s approach to setting prices. Price ranges and pricing strategies are significant in determining the company’s profit margins and product attractiveness. IBM has the following pricing strategies for its information technology products:

Market-oriented pricing strategy
Value-based pricing strategy

In the market-oriented pricing strategy, the objective is to set prices that are comparable with the prevailing prices for some products in the information technology industry. For example, IBM’s online products, such as cloud platforms services, are priced competitively, especially because of high competition and considerable price sensitivity affecting some products in the cloud-based services market. On the other hand, the value-based pricing strategy is applied in some of the company’s product lines. The objective of this strategy is to determine suitable prices and price ranges based on how customers perceive and need IBM’s products. For instance, the company’s customized business machines for restaurant chains are priced based on the value-based pricing strategy. The cost leadership strategy and the market penetration intensive strategy influence this aspect of the marketing mix or 4Ps


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