Microsoft's marketing follows Apple's playbook
At some point, clever marketing can backfire.
It's been quite a run for Microsoft of late. After sleeping for nearly three years while Apple successfully bashed it every night on network television with the Mac vs. PC ad campaign, Microsoft has sobered up and taken the offensive over the last several months with a series of marketing messages comparing the relative prices of Macs and PCs made by Microsoft's partners.
Make what you will of Lauren and Giampaolo's sincerity, there's no denying that the ads have struck a nerve. For years, fanboys of various stripes have fought vicious battles armed with HTML tags over the proper way to compare the prices of Macs and PCs, and by tapping into that, Microsoft's Windows marketing team has shown it has a pulse.
But perhaps someone at Microsoft should start to wonder what kind of branding message they are implanting in the public mind.
Microsoft's public-relations squad e-mailed reporters Thursday morning with another cutesy message regarding the "Apple Tax," because next week is Tax Day. (Get it?) My colleague Ina Fried has all the details on the maze of twisty passages Microsoft followed to calculate the Apple Tax, but the gist is basically the same as you've heard before: Macs are expensive, PCs are cheaper, and in these troubled economic times, won't you do the right thing for yourself and your family and save your money?
It's a reasonable tactic: every marketing student learns about the Four Ps very early on in their education, and price is an essential weapon in any business plan. But in continuing to push this strategy, Microsoft is inadvertently reinforcing every single branding message Apple has ever attached to the Mac.
Virtually everyone who has ever used a personal computer has used Windows, meaning that almost every single computer user on the planet has developed an association with Windows. Most of those current associations still center on Windows 95 and Windows XP, which got the job done but also introduced the world to massive security threats, software engineer jargon, and the concept of hitting the "Start" button to stop using the computer.
That's what Apple has so successfully exploited with the smarmy Mac vs. PC campaign. The ads positioned the Mac as not only a superior computing experience to Windows, but a hipper one.
Microsoft has essentially conceded that point. As others have noted, Microsoft's shoppers don't ever wonder about the relative merits of Finder versus Windows Explorer in its latest series of ads. Instead, they focus completely on trying to make a hardware-to-hardware price comparison between various notebooks.
Yet, Microsoft is a software company. And software, not hardware, is where you form a lasting relationship with a computer.
With its current ad campaign, Microsoft--perhaps the most dominant consumer software company the planet has yet to produce--is doing nothing to repair the damage done to the Windows brand by the Mac vs. PC campaign. One could argue the campaign is right for the times, as the company has (wisely) pretty much given up on trying to sell Windows Vista, Windows 7 isn't ready yet, and any rational person is watching their money more closely than they did in 2008.
But when Windows 7 is ready, Microsoft will have a bit of a dilemma on its hands. It could find it hard to sell Windows as a better experience than Mac--even if it is--because it has spent so much time and money on convincing people that Windows PCs are a bargain.
Argue all you want about the Apple Tax--it doesn't matter. There has always been, and will always be, a sizable group of people willing to pay extra for certain consumer goods simply because they carry an extra level of status. For years, the companies that sell those goods have profited quite handsomely from delivering two services: a quality product, and a status symbol.
Under Steve Jobs, Apple has almost always sought to position the Mac as an antiestablishment high-end computer, a computer for those who "think different" and get excited by their computers. Price is not a consideration for those willing to think different.
The only thing the PC industry is excited about right now are Netbooks, which they fail to mention are eroding their margins even more than they have already been eroded after decades of price wars. And now Microsoft is once again driving the price message, training consumers to expect ever lower prices from their computer salesperson.
Apple, meanwhile, with the best margins in the personal computer industry and two highly profitable consumer electronics products funding its growth, has now had its marketing message of the last two years--Macs are better than PCs--amplified by its rival's message--PCs are cheaper than Macs.
While the world needs Kias, the world wants BMWs, and anyone old enough to grasp a dollar understands that most times, you get what you pay for. Consumer confidence will one day return, and in taking the "Apple Tax" campaign to new heights (or lows) Microsoft has not only strained the bounds of credulity, it has cemented the idea that Macs are an aspirational product.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
Why spend more that you need for a tool whether it be a computer, car or watch. Unless of course you need that to make you feel or look cool.
whether it's Macs or iPhones or iPods
they go deep and try and bring the best experience in the service of the user
much like other Luxury brands
it's the way OSX is designed Apple goes to great lengths to make the software both Easy to use and stay out the way as much as possible unlike other OS'es !
add in all the nifty extras like Magsafe connectors magnetic latches slot load drives
and the great Customer service etc. etc.
Macs are Like Luxury Cars not in terms of computing power
but in terms of user experience
which is why we Mac users keep taking about BMWs etc.
you need to own a Mac to understand !
these are the reasons why I keep buying Macs not because they look Cool or as status symbols ! and they aren't really that expensive in the long run !
having said all this Macs are not for everybody IMO
cause Apple is not trying to be everything to everyone like Microsoft is !
which is why they have such a clean Product line-up of just 10-20 models !
In late 2006, I purchased my very first Apple computer - a 17" MacBook Pro. That same quarter, I also purchased for my wife the most expensive home biz Gateway setup available, with its Windows Vista OS.
Any "Apple is overhyped" argument doesn't cut it in my household. The Vista machine and its disappearing sound drivers and system freezes and video problems cause us scores of hours of downtime and tech support calls and a repair job. My MacBook Pro? After being a Windows devotee for as long as it was on the market, my MBP has become my primary machine. I haven't "looked back" since I purchased it.
Clint Bradford
Mira Loma CA US
Any software that Microsoft didn't create is not there liability.
And thats the problem with consumers.
Someones Nvidias drivers fail they don't say damn Nvidia can't write drivers worth a **** they blame the OS which isn't fair.
People in the know DO blame Nvidia, the uninformed don't even know what a driver is. Macs use Nvidia and ATI drivers too. It's a package deal: You get the Mac with software and you get the PC with software. And both have to operate third party software. One of them does it more reliably than the other. People who have actually used a Mac and aren't just spouting the usual ignorance recognize this.
To be honest, there seems to be some resentment in your post--as if you can't afford a Mac or a BMW yourself and are simply resorting to insulting everyone who owns one. Before you jump to these conclusions, you need to simply appreciate that there's nothing wrong with enjoying nice things when you can afford them.
This is all the Mac vs PC ads did too. Thats why they are Mac vs PC and not OSX vs Windows. So MS is just following suit. In the end, Macs are just an overpriced PC. There is nothing different about them other than the OS since Macs went Intel other than you pay more for less.
And no duh Sherlock, it's the OS. Why didn't anyone think to bring up this point before? /sarcasm
That's the main thing that makes a Mac a Mac. When the hardware was different, that's what made them REALLY different, and today it's still what makes Macs different. That the OS is tuned to the hardware is but one feature that benefits Macs. But in the end, the real differentiator of a Mac vs a PC is the OS and what it lets you do.
To say Macs are just overpriced PCs is like saying Apple pie is just overpriced apples sans peels.
This is all the Mac vs PC ads did too. "
Wrong - the Mac vs PC ads highlighted the difference between the Mac experience and the Windows experience. Remember the ad with the Japanese girl coming out representing a camera that could connect to the Mac without trouble? Remember the networking ad? Remember the ad focusing on the neat things iLife can do? These aren't hardware ads, they are usability ads and usability comes from the OS - or in the case of Windows, often fails to come from the OS
If you did not waste so much money on those Macs, then maybe you could own a Porsche. Besides, comparing a hipster Mac to a serious sports car like a Porsche is an insult. A Mac is more like a WV Beetle.
Hizzah!
Have you not seen the Windows commercial where the 5 year old girl uploads a picture of her fish from her camera and then emails it to her parents? She is using Windows Picture Gallery and Vista Mail for that task.
That sure looks like a demonstration of the software.
[Editor's note: Personal attack removed]
the hardware could be Intel,AMD,Nvidia or anything else
but in the end the software is wat we as users deal with the hardware matters little
Why do you think Apple is so protective of it's Software not only in Macs but also in iPhones and other products etc.
it's because software is the Real Killer feature in any Device !
and this the single reason why Macs are priced Higher than Pcs
the O.S and software are a luxury compared to Windows ! atleast IMO !
And whats up with the one-button-mouse?
Sorry to burst your bubble, but Apple's sale fell 16% in February while PC's rose 22%...hmmm, maybe the idea that paying a premium for the same parts has become more evident due to the recession...
And if you open up the inside of an Apple computer...you will not find Apple parts...you will find the same parts that you can find in a Dell, HP, or Toshiba machine...
No matter what Steve Jobs tells you..
Apple has been oddly quiet for months now- even their own Mac vs PC ads dropped off the planet just after New Year's. Not sure what is going on there.
They're not quiet -- just targeting a different leg of the stool right now.
Apple seems to always get there first. (say what you want, I know this is a very nice flame war trigger phrase). Sure, in a little bit their technology might be just like everyone else's, but Apple got the first round of customers and got to present the first impression on consumers.
And of course, the iPhone ads..
getting shot in the foot.
they should just give up and start selling Windows for $19.99. then they can argue
that they are cheaper and windows PCs are bargain! Thats a right price for crapware.
people who keep say MACs are overpriced are just plain ignorant!
What do you get out of the deal a OS that doesn't get viruses?
Thats about the only benefit I see.
"It just works" My ass it just works if it just works they wouldn't need a whole site section dedicated to problems would they?
My Acer just works too its going on 2 years now and I haven't seen one crash out of this thing.
not just a OS that doesn't get viruses or spyware
it's so much more {thats only a added bonus}
the best way to describe it is
is like comparing a pair of Klipsch speakers to a LG set
they both do the same thing but one does it better and with more
flair and efficiency !
Now we get into this series of ads from MS. So far, I've seen one girl who walks in and out of an Apple store so fast I'd think she just realized it was the wrong store and then turned around and walked out rather than looking at anything and I've seen one guy who proves how ignorant he is by not even looking at the software for a Mac before deciding it's not what he wants. He wouldn't even touch the hardware.
Tell me again, what's your definition of elitism? It's obviously different than mine if you call Apple elitist from their ads and aren't willing to call MS the same.
The only people who had issues were people pushing it with really old hardware I got my PC with Vista before sp1 and it ran fine. No bugs.
What's the difference?
The first one is because OEM is the most effective way to push new sales without investing hard on communicating with thousands of partners, etc.
The second one is because they want to say "PCs and Macs have the same components inside" as Hyunday has Mitsubishi engines (I'm not sure if that is true but is valid for making the case).
Don't forget that MSFT is now pushing a lot on OEM, even the new Windows Server Foundation is a new thing coming soon and available only for OEM.
I miss the days when Microsoft was worried on adding value to their products. Looks to me now that they transformed into a retail business.
You don't get it. The OS "is" the computer. And having a better OS makes all the difference.
Every OS has it's own strong and weak parts. There is no BETTER in this case, you like MAC, I like WINDOWS. The point is that if you put the same hardware side by side and say that the price difference is OS price, then MAC OS costs $400+
MS doesn't care if you use a mac because 80% of the users keep a windows installation in boot camp and buy office.
Its not sticking it to the man buying mac if your still going to buy there software.
MSFT still gets their licensing fee and thats all they truly care about.
Why do quite a lot of MAC users use boot camp if MAC OS is so great? "
Do you have some accurate figures as to exactly how many Mac (not MAC) users run Windows under BootCamp or Parallels?
didn't think so
Microsoft's latest ad campaign focuses on the price of PC's vs. Macs. This is an extremely relevant argument, especially given the current economic environment. I am not sure why you are questioning this tactic.
I also completely disagree with your statement that the Windows brand has been damaged by those Apple commercials. Despite all of the outrageous and humorous claims made over the past 2 years, Apple's market share hasn't broken 10% yet and has grown at a slower rate than overall PC sales. Meanwhile Netbooks running Windows are flying off of the shelves and Vista adoption is growing faster than Macs. Windows 7 will grow faster than all three on PC's, laptops, and Netbooks.
The only thing Apple has accomplished is to make Microsoft step up their game and make a better product with Windows 7. They have done a much better job with the iPhone. Why don't you concentrate on that instead of continuing to bring up this pointless discussion about Macs showing any signs of taking over the desktop because it is not going to happen.
And why should Microsoft need Apple to prompt it to "step up their game"? Are you admitting Microsoft is behind? You should ALWAYS be stepping up your game, not just when a company starts yelling at you.
It reminds me of the people in track/x-country who would walk when no coach could see them, then start jogging whenever they got caught.
And don't throw market share at people, everyone does (and for that matter specific statistics). You could debate with so many different numbers all telling different things you would just be running in circles between computers. Vista adoption growth makes sense. It'd probably be similar to an exponential graph. Slow to catch on, but as more people have it, more people will want it; that's exponential. Then it'll slow down. EVERYTHING goes through that cycle. Things will grow fast one moment, and slower the next. I really don't care at all for growth statistics. So what if Apple's or Microsoft's market share is growing or falling. Too often it changes too soon.
If you think "hipper/more visually appealing"="superior computing experience", then sure Macs may be better in that aspect, I guess.
I, however, define "superior computing experience" as being able to do more with the platform, and Windows beats out Macs hands down.
I'm also sick of the car brand analogy, it doesn't relate very well.
What if I want to run AutoCAD on a Mac? Wait, you can't, because Macs don't run AutoCAD. Isn't that like the BMW not being able to travel to Chicago, but the Kia can?
As for the car comparison. BMW makes superior vehicles and this quality is not just indicative in the drive, the EMS, but also the parts, which goes to a significant degree to explain why they have an exceptional reliability record even in the used car Market.
Cheap in no way indicates value at all. Never has done.
You still bought a Windows license MS still got paid so what the hell is the difference?
You have absolutely no idea what it means when they say OSX is based on a *nix platform, do you?
you resort to using Windows, how nice
my Toyota is supposedly more reliable than your BMW
there are hundreds of studies that prove this
isn't Scion, Toyota budget brand (if that is even possible) in the top 5 for reliability?
@daniel
"There is always an alternative"
isn't that what all the Linux guys have been trying to point out
or what all the Windows fanboys (if there are any) say when someone brings up the iLife argument
and the response by the people defending is: the alternatives aren't as good
Wanna bet my vista"pig with lipstick"
Will whoop your macs ass in performance tests down the block?
depends on the benchmarks you choose !
when it comes to multi-tasking Vista stinks
and benchmarks aren't everything
I'd rather have a Better designed O.S
that allows me to do things in half the no. of steps !
you overstated the importance of the said benchmark
the test where Macs are good at is "Multimedia Multitasking"
it is converting a movie to a format usable with an iPod with Quicktime happening while iTunes is trying to convert mp3 to aac
both are pieces of Apple software (which suck in Windows) and this situation isn't exactly common in real life either
Much better than the whole hog, which is what monolihic OSs are.
For those that do, PC's are very much the squiggly doodle that's great, fun, and cheap at first. The line is very much like the Mac where in it's an experience that while it may take some time to learn, ends up creating a much more grand experience.
For everyone else that didn't see that cartoon, continue on, I must be high or something.
What are they in allyways now? "Buy Windows or i'll blow your effing brains out!"
Microsoft is trying to cater to 90% of the audience, because the total purchasing power of 90% is much bigger compared to "elite niche" (in Apple words) audience. This should also be somewhere in those "marketing books" that you mentioned. Apple will never be the mainstream computer if they don't change the way they approach things... (same is applicable to iPhone by the way).
For all who wondered, that is the point of the article: Apple isn't trying to gain huge amounts of market share in the PC/Mac arena. It would be an almost impossible undertaking to even get 20 percent of the overall PC market; they'd have to introduce a ton of new models, slash prices (and therefore profits), and basically grow 20 percent a quarter for the next five years. It's just not going to happen.
So they are content to be in a profitable niche while they go after the next big wave in computing: mobile. By reinforcing the idea that PCs are the bargain alternative, Microsoft is letting Apple keep that profitable spot rather than trying to win it and put Apple on the defensive.
nsmoly: don't focus on metaphors, they almost never work. And also, Windows 7 isn't out yet, talking about it now is irrelevant. We're talking about the ads NOW. When Windows 7 comes out, Microsoft can advertise it and we can compare it to OS X.
the above command does the following in one single sweep:
1. Searches my current directory path recursively for all "files" named my_great_file.* and filters out the .doc files (I don't want them.
2. Sends the output to another file and displays the output file contents
3. Performs a checksum of the output file.
I have given an example of a shell script which performs multiple tasks in one single sweep. I have tried doing this on Windows and get frustrated. There is no shel interface and you have to go clicking to do things.
I do not say that I could not do the above on a cheap PC with Ubuntu installed. I can and I do. I use Linux too. Ubuntu beats the hell out of MS in terms of power and price. I use the Mac for elegance and here is a list for other things:
1. The best way to play my movies (Front Row)
2. iWorks - can't explain what you are missing
3. Time Machine - have you heard of painless backup and recovery
4. Parental Control - which means what it says. My child gets limited hours on the comp, I get the logs, and control what sites and content is visible.
5. XCode - developer tools for free and it is pro grade.
6. iLife - iPhoto rocks, iMovie (painless movie edits), GarageBand - I am a musician now, iDVD - pro level DVD authoring
7. perl, php, svn (version control) and ports (i am sure a Winders guy never herd of it).
8. the list can go on for me
I am sure you would have a tome to write if you wanted but i am happy with what I have.
I sure appreciate that you use what you like and I use what I love.
I love how all the MAC fanboys have the assumption that anything that isn't made by Apple is falling apart.
Apple makes a small computer on the go called iPhone. I believe you have never used one. :)
a small computer that is incapable of opening an attachment.
What kind attachments dude. ever try opening a doc, xls, pdf, jpeg. tell me. i use iphone to read all these stuff and more. you want to edit them. head to the App Store. spend a little $ or do i say rupees. wait i forgot in india people do not buy software. they take it.
Yes, indeed. I have a few professional Mac developers who are currently developing an imaging software for the iPhone. During the recent outage at AT&T in California, they had to use their iPhones to do most of the communications. Guess what ,they couldn't open any doc or xls file on it. I personally haven't looked into why not but they tried many times and even had a chat with Apple tech over the phone but still couldn't open them.
Now since we have the internet restored, the attachments open just fine on a regular PC and are regular documents that I believe an iPhone should be able to open.
One more thing, what gives you the assumption that I am Indian? If its the screen name. Then there isn't a bigger idiot than you. You have no idea as to why I have chosen this screename and you just simply imply that I am something that I am not.
And about you insulting any country. First look into the economic condition of that country, look up exchange rates and then calculate whether something is affordable for those people according to the salaries they get. In Russia, I have seen original copies of Windows (XP and Vista) go for around 2000 to 3000 roubles and a original OSX go for 3500 roubles which is about half or more than half the price in case of windows. I know they are offical copies because I confirmed my registration over the phone with Apple and microsoft as I do not buy pirated software.
You to me sound like a White Supremacist, just like the one who shot 4 Americans in Pittsburgh.
And they still run their Vista commercials as well for all those that claim MS has abandonded Vista. All those commercials with little kids showing how easy Vista is.
I use Vista on my Home PC and it runs great. I have no crashes, the system boots up faster then my Boss's wife's iMac and it shuts down in less then 10 seconds. It is sad everyone belives in the Mac Propaganda. I know people who say they do not want Vista because of what they have "heard". I tell people, Don't knock it til you try it.. It is a good, stable operating system that can outperform any Mac any time and has a ton more software and games available.
And for those that say Macs are not overpriced? Price the parts yourself. See how much Mac charges you for that memory upgrade and then go to Crucial.com and check the prices there....And Crucial is by no means cheap themselves, but they will blow away any price Apple gives you.
Not having viruses is not worth $500
This was the first and only time I will every use Vista. The laptop it was installed on is very nice, good keyboard, a bit too heavy for what it was originally designed to be (laptops should be portable). The problem has never really been the hardware with Windows. I'm using my old hardware with Linux right now and it runs beautifully. I used Windows with the same hardware and it ran decent with a lot of work.
I'm pretty sure if I'd done some work on that computer, set it up properly, made sure everything was running smoothly, it wouldn't have lost the photos. That's the whole point though, I shouldn't have to do all that work for the OS, it should work for me. OS X works for most who buy it, Ubuntu works beautifully for me. Vista didn't work so well for a large amount of people.
It's great that Vista doesn't crash for you and that it boots up faster than your Boss' wifes iMac. How old is her iMac, by the way? Is she still happy with it? Can she still do every last thing she's ever wanted to do with it? Those are the true tests of an OS, making the consumer content.
So far thats 6 People and thy all started of bashing Macs
a few arguments later !
all I did was pointed them to a few youtube Videos
and ask them about their Windows Experiences
and Boom they were convinced !
Some of them went all out and even bought iMacs and Macbook Pros even though I suggested Mac minis and used powerbooks !
and so far all of them are loving their new Computers !
the only reason for Apple's low marketshare IMO is ignorance !
So by bringing Apple's name into the picture
MS is doing Apple's job for them !
So this article is dead on atleast in my experience
and thx Microsoft for being as clueless as usual !
- by dpsavy April 9, 2009 3:17 PM PDT
- I guess in the end it all comes down to what your needs are. If you need to be coolest guy with the biggest toys than that?s what you buy, me I would prefer to spend the money on other things like my family but that?s just me. If you can?t seem to avoid plaguing your computer with viruses because of your browsing habits or whatever; you get the product that has the least risk. If you have to provide a computing environment for hundreds or thousands of people, you buy the product that provides the right functionality at the lowest cost. Which in the end may be neither a PC or a Mac but the whole my daddy can beat up your daddy campaign just seems a little silly to me.
- Like this Reply to this comment
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- by Sporlo April 9, 2009 9:32 PM PDT
- RIGHT THERE--> it all comes down to what your needs are.
- Like this
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Showing 1 of 2 pages (123 Comments)People love to compare the two company's products, but ultimately, much of the arguments don't relate to some people. Each trait will have a different appeal to each and every individual. Compare products with 1 other person, not a huge group. Otherwise you just get a huge gigantic jumbled mass of arguments of what's better and worse. Then you can't even compare them anymore, there's too much information.