MARKETING CONCEPT IN ELECTRONIC ARTS
1.0 TERMS OF REFERENCE
The report will present an implementation of the marketing concept into business strategy of Electronic Arts. 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 HNC course co-ordinator on 25th October 2007.
2.0 PROCEDURE
In order to analyse how the marketing concept elements are incorporated into Electronic Arts (EA) overall business plan the following steps has to be taken:
2.1 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 EA policies and analysed
company production, sales and promotion activities.
3.0 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 analysing and satisfying customer's needs and the management team in EA knows well that the business would not survived if those needs where not meet. Commitment to the customer is expressed in the company Code of Conduct as one of the "Action Values" which are the principles on which the entire business idea is based (see App. 1).
3.1.1 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. EA is not leaving any users without the access to their products and the company titles are available on all gaming platforms like Xbox, Playstation, Nintendo and PC.
3.1.2 Software Developers
Many of existing staff in the company used to play the EA games when they started creating their own pieces of work, so back in the days they where the customers 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.
Key Changes in the Video Game Industry The first wave of home video games was launched nearly 30 years ago. By the early 1980s, this electronic entertainment medium had emerged as a cultural phenomenon, thanks to classics such as Asteroids, Centipede, Donkey Kong, and Pac-Man. The world of video games has, of course, changed drastically since then. For starters, Microsoft, Nintendo, and Sony are now the key players in the console industry, having replaced Atari, Coleco, and Mattel for those top spots. Advances in technology are making game worlds more realistic and interactive than ever before.
The structure of the Video Gaming Industry is comprised of several stages. The first stage is the Development Stage. (3) Currently there are three giants in the gaming world. Microsoft’s Xbox 360, Sony’s PlayStation 3 and, Nintendo’s Wii. For these consoles, there are companies that make agreements to release exclusive games. For example, one company can make games solely for Xbox 360. Another company can make games for a particular series offered by the Platform, such as Mario for the Wii. The most common companies are the ones that create games for all consoles, and have no agreement with any particular console.
Instead of the franchises popularity having a positive impact, overtime, it infected the gaming market along with it’s consumers and developers such as Microsoft Game Studios and EA. It has become an aggrandized cancer on the face of video games everywhere, destroying franchises a...
Kotler P., Armstrong G., Saunders J., Wong V. (2002) Principles of Marketing, Pearson Ed.Ltd, pp.185-188
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Armstrong, G, Adam, S, Denize, S, Kotler, P, 2010, Principles of Marketing 5th Edition, Pearson Australia Group, Frenchs Forest
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