The report will evaluate the benefits and cost of the marketing approach in Electronic Arts. All information has to be submitted to Mrs… Susan Campbell, the HON.. Course co-ordination on 25th October 2007. 2. PROCEDURE In order to analyses how the marketing concept elements are incorporated into Electronic Arts (EAI) overall business plan the following steps has to be taken: . Electronic Arts main web site has to accessed in order to obtain company business information. 2. 2 Internet and book resources have to be scrutinized to collect all relevant data about the Marketing Concept implementation. 2. 3 All aspects Of marketing concept has to be assessed against EAI policies and analyses company production, sales and promotion activities. 3. FINDINGS 3. 1 Satisfying Needs As the Key Business Element Electronic Arts started creating electronic entrainment software in 1982 and from that day the company grew rapidly becoming the one of world leaders in the industry.
The number of employees increased from two people to 7,900 worldwide in the beginning of 2007. Marketing concept is based on analyzing and satisfying customer’s needs and the management team in EAI knows well that the business would not survived if those needs where not meet, Commitment to the customer is expressed in the company Code to Conduct as one to the “Action Values” which are the principles on which the entire business idea is based (see App. 1). Products for All Electronic Arts driven by marketing principle of meeting customer needs has created games which relate to nearly all aspects of human life.
Sport, strategy, action games and even simulators Of everyday life (Sims) are all in the company games portfolio. EAI is not leaving any users without the access to their products and the company titles are available on all gaming platforms like Oxbow, Palpitations, Nintendo and PC. 3. 1. 2 Software Developers Many of existing staff in the company used to play the EAI games when they started creating their own pieces of work, so back in the days they where the customers 0 gamers who used to buy the company products.
Nowadays as they are shaping new titles themselves and they know how important is to adapt to what the new generating of game fans is looking for, . 1. 3 Games Testers The company has a big number of professional C salary paid and amateur, game testers. These are the people who are giving Nan-biased opinion and guidelines on how the future products will be developed. The amateur testers are the selected from the gamers who take part in game tournaments all around the world, members of computer games conventions, players with best score and performance in Our-internet competitions as well randomly selected game buyers. . 2 Research – Assessing Change in Customer Needs The world of electronic entertainment is evolving w? Rye fast and to keep with the interiors EAI marketing team needs to have access to customer feedback and “fresh” data on daily bases. The company uses primary and secondary research as well as the quantitative and qualitative research. Researches are used to identify market opportunities, improve marketing efficiency, quality of the software and service provided by the company. Electronic Arts uses surveys and questioners to gather data and feedback from the customers.
Advice from testers is also very useful tool in developing products. All tooth gathered information’s are used to prepare prognosis and sales simulations for completely new games ND new editions to existing titles. Marketing team analyses competitors moves by attending all industry expositions and conventions, 3. 3 33. 1 Integrated Marketing Product _ As emphasized by Jobber and F-aha (2002) “The core element of the marketing mix is the company’s product or service because this provides the functional requirements sought by the customers’ Electronic Arts products are offered to worldwide customers.
All of the age groups are targeted and most Of the titles are available in the country Of sale With appropriate language version. All sorts of game types are manufactured by the many: sport games (branded EAI Sports) this include famous and race game Need for Speed, strategy games like Command & Conquer series, action games like newly issued Crisis and all types of fun-family games i. E. Simms CLC a simulator of everyday life.
Product range was recently extended by purchasing leading mobile phones game manufacturer JAMMED Inc and currently EAI group is the largest manufacturer of games for mobile phones, Software is extensively tested to ensure great playability and quality. 3. 3. 2 Place Games are sold by many different channels of distribution from big supermarket Haines like ‘Tests” or “Wall-Mart” to specialized software retailers including “Game” or “PC World” and directly through Internet shop on main company web site. For the future EAI is planning to increase sales on-line by creating internet megastars which will be available in different language versions. . 3. 3 Price To ensure that the products are competitive on the market EAI have to offered games at the price comparable to the market rivals. In this segment Of the market most of the competitors are using similar pricing technique C price of the game depends on the platform it is issued for. Newly released games for new consoles like Plantation 3 and Oxbow 360 would be most expensive. It could be called a gentle skimming technique. Gamers who are prepared to pay big money for the new console would also pay higher sums for new innovative game.
Games and game consoles are complementary products so as long as the price of consoles is high, price of the games will usually stay up as well. 3. 3. 4 promotion Because of the huge competition in the industry there is a big emphasis on promotional efforts. Nowadays even best developed software without massive advertising may fade in the crowed of similar titles. Electronic Arts are prepared to spend big on promotion of their products. Sport games issued by the company are marketed with using the biggest names in the sport world.
Company is hiring football stars like Reinhold or Wayne Rooney to promote their football series VIVA along world champion Tiger Woods who is promoting interactive golf game. 33. 5 Customer Orientation The idea Of marketing approach is spread through out the entire company. Electronic Arts puts an emphasis on all staff to maintain highest standards of work and in order to deliver best possible product for the final customer _ Pro- active approach is in place and starting from software developer through sales people up to board Of directors all are treating they co-workers as they own customers.
This approach gave effect of $3. 09 billion revenue for financial year 2007 and over 24 titles which sold in more than one million copies. 3. 4 Customer Satisfaction Feedback trot customers and the way they are reacting to new releases is very important for proper implementation of the marketing approach. Marketing team in Electronic Arts is very closely analyzing any suggestions coming trot the customers. They know that it is much easier to keep the existing customer testified than gain a new ones.
They are aware as well that the customer who will be lost may never return and turn for the competitors’ product, 3. 5 Marketing Concept as Part of Company Objectives Prom “day one” the customer orientated approach is an integral part Of the Electronic Arts. Without looking at customer needs and successfully satisfying them it would be impossible for the business to achieve such high position in one of the most competitive markets of the world. For the company which bases their business “to be” in the hands Of gamers it is the most important to liver products tailored to their expectations.
Marketing concept in Electronic Arts evolved with the company becoming an example for the competitors. The company have a massive gain from applying the marketing values into their business strategy and it could not exist without it. 3. 6 Society Impact Games produced by the company are played by all age groups. Youngest gamers are aged five and that’s why the company has to be very carefully in the way the products for those young children are presented.
In the recent years EAI was in the group of companies’ accused that why they are transferring all of he customers’ wishes into world of games, they went a step to far in making them “to real” by applying excessive violence into their products, Although the company assignees strict age limits to selected titles, many pressure groups in likes of government agency Entertainment Software Rating Board US, and many children welfare organizations are blaming the EAI and other games manufacturers for aggressive behavior of teenagers. The issue is currently being widely discussed and LISA some parents are taking court cases against the EAI.
The company is limiting the violent content in their games but frequently t collides with what the older gamers wants, especially in the war and action games. 4. 0 CONCLUSION Electronic Arts, an entertainment software manufacturer, is the company which applied the principles of Marketing Concept. Kettle and Armstrong (2001) define the marketing approach as achieving company goals by determining and satisfying the needs footages markets, which is done more effectively and efficiently than competitors, Delivering on of the highest quality games EAI gained a position of a world leader.
Customer orientated approach is present in the organization from the beginning of the firm in 1987. By proper implementation to marketing values the company grew to become an international enterprise with revenue of billion and 7,900 employee’s worldwide. The company share price raised from bellow a $1 in 1990 to $60 in October 2007 (see App 2). Products are created to satisfy as much customer groups as possible 50 EAI is producing for all available gaming platforms.