Home » Advertising, Analysis, Brand Management, Business, Marketing, Marketing mix, Projects, Related to MBA, Service Sector

Marketing Mix of Activision

Written By: Yogin Vora on December 26, 2009 No Comment

Introduction : -

In 1979, Activision opens its doors as the first independent developer and distributor of entertainment software. Activision, Inc. is a leading international publisher of interactive entertainment software products. The company maintains a diverse portfolio of products that span a wide range of categories and target markets and can be used on a variety of game hardware platforms and operating systems. The company has created, licensed and acquired a group of highly recognizable brands that it markets to a growing variety of consumer demographics.

Activision’s products cover the action/adventure, action sports, racing, role-playing, simulation, first-person action and strategy game categories. The company’s target customer base ranges from casual players to game enthusiasts, children to adults, and mass-market consumers to value buyers.

The company’s publishing business involves the development, marketing, and sale of products directly, by license or through its affiliate label program with certain third-party publishers. Its distribution business consists of operations in Europe that provide logistical and sales services to third-party publishers of interactive entertainment software, its own publishing operations and manufacturers of interactive entertainment hardware. Activision completed a number of acquisitions of both software development companies and interactive entertainment product distribution companies.

Product : -

Activision develops its products using a combination of its internal development resources and external development resources acting under contract with the company. It typically selects external developers based on their track record and expertise in producing products in the same category. One developer will often produce the same game for multiple platforms and will produce sequels to the original game. The company believes that selecting and using development resources in this manner allows it to leverage the particular expertise of its internal and external development resources, which it believe adds to the quality of its products.

The company has acquired a group of highly recognizable brands that it markets to a growing variety of consumer demographics. The company believes that the publishing and distribution of products based in large part on franchise properties enhances predictability of revenues and the probability of high unit volume sales and operating profits.

Product Line & Product Mix is detailed below:-

Place : –

Activision’s headquarters is located at 3100 Ocean Park Boulevard, Santa Monica, California 90405. Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Sweden, Spain, the Netherlands and South Korea. More information about Activision and its products can be found on the company’s World Wide Web site.

Activision believes that the company has successfully diversified its operations, channels of distribution, development talent pool and library of titles, and has emerged as one of the industry’s leaders. It intends to continue to evaluate the expansion of its resources through acquisitions, strategic relationships and key license transactions.

Price : -

Price is the one element of the marketing mix that produces revenue, the other elements produce cost. Prices are the easiest marketing mix element to adjust; product feature, channel and even promotion take more time price also communicates to the market the company intended value positioning of its product or brand.

Activision continues to focus on increasing its margins. The company has, for example, acquired certain experienced and specialized developers in instances where it can enhance profitability through the elimination of royalty obligations. Additionally, it often relies on independent third-party interactive entertainment software developers to develop some of its software products, thereby taking advantage of specialized independent developers without incurring the fixed overhead obligations associated with increased internally employed staff.

Activision’s sales and marketing staff work with its studio resources to increase the visibility of new product launches and to coordinate the timing and promotion of product releases.

The company’s finance and sales and marketing personnel work together to improve inventory management and receivables collections. It has instituted broad, objective-based reward programs that provide incentives to management and staff throughout the organization to produce results that meet its financial objectives.

Promotion : –

Activision completed a number of acquisitions of both software development companies and interactive entertainment product distribution companies. During fiscal 2006, the company continued to enhance its internal product development capabilities with the acquisition of two game developers, Toys for Bob, Inc. and Beenox, Inc. Additionally, in May 2006, it entered into an agreement to acquire video game publisher RedOctane Inc., the publisher of the popular Guitar Hero franchise.

Popularity: 1% [?]

Tags: 4 P's, Activision, Games, Marketing mix, Place, Price, Product, Promotion