Understanding the Principles of Marketing

Component B Re-sit

Individual Report and Critical Reflection

3 August 2021

Student No.:

Word Count:

1
Executive Summary

The main objective of this research paper is to scrutinize and probe Electronic Arts’
major segments. The major segments discussed in this paper are market segmentation,
competitors, and advertising mix. Different critical success factors of this brand are
discussed in this paper with latest and proper data and facts. EA’s 7P’s marketing mix
and CSF are briefly described. Recommendations to improve these CSF are properly
suggested in this research paper. In addition, this investigation provides
recommendations to Electronic Arts’ in response to its advertising mix.

Table of Contents

2
Executive Summary...........................................................................................................2

1.0 Brand overview............................................................................................................3

1.1 Perceptual map............................................................................................................4

2.0 Critical Success Factors..............................................................................................5

3.0 Market Segmentation...................................................................................................6

3.1 Product......................................................................................................................6

3.2 Prices........................................................................................................................6

3.3 Place.........................................................................................................................6

3.4 People.......................................................................................................................6

3.5 Process.....................................................................................................................7

3.6 Promotions................................................................................................................7

3.7 Physical Evidence.....................................................................................................7

4.0 Recommendations.......................................................................................................8

4.1 Products....................................................................................................................8

4.2 Price..........................................................................................................................8

4.3 Place.........................................................................................................................8

4.4 Promotions................................................................................................................8

4.5 People.......................................................................................................................9

4.6 Process.....................................................................................................................9

4.7 Physical Evidence.....................................................................................................9

3
Reference..........................................................................................................................9

Critical Reflection.............................................................................................................10

1.0 Brand overview

4
Electronic Arts (EA) is an American developer of manufacture of video games and
electronic games for Personal Computers. It was founded and integrated by William
Hawkins on May 27, 1982. Hawkins established the company with a sole investment of
an estimated US $ 200,000. Redwood City, California is the company's headquarters.

Electronic Arts (EA) is a game developer and publisher that creates and distributes
games, content, and online services for internet-connected consoles, mobile devices,
and PCs. EA today manufactures and publishes games from popular franchises
including Battlefield, Need for Speed, The Sims, Medal of Honors, and EA sports titles
like FIFA, Madden NFL, NBA line, NHL, and EA sports UFC.

Electronic Arts (EA) is the second largest gaming company in the Americas and Europe
by market capitalization and revenue. The major competitors of EA are Blizzard-
Activision, Take two interactive gaming companies. The total valuation of Electronic Arts
(EA) is 41.3 $ billion, whereas the total valuation of Blizzard-Activision and Take two
interactives are 71.1 $ billion and 19.9 $ billion respectively. Similarly, the revenue of
Blizzard-Activision is $ 48.1 billion, whereas Take two Interactive and Electronic Arts
(EA) is $ 3.4 billion and $ 5.6 billion respectively. The total number of monthly active
users of Blizzard-Activision and Electronic Arts (EA) is 390 million and 160 million.

5
 1.1 Perceptual map

2.0 Critical Success Factors

The video gaming market is very perilous and changes ensue very rapidly. It is very
obligatory for providers to be pliable when it changes, which makes EA effective. The
product created by EA can be played in the Personal Computers by vast majority use.
Electronic Arts creates various numbers of individuals who may have claimed
idiosyncratic PC fragments. (How EAs expanded around the world, 2019).

EA uses free gifts and discounted packages on games discharged. This is frequently a
clear action that is necessary to attract games in a highly saturated market with several
competitors and replacements since it allows for premium buy. Some bonuses don't
cost any more to provide because they're already included in the game's content. This
creates future opportunities for targeting a bigger audience to maximize revenues in a
very extremely competitive market.

6
 Ansoff Matrix (Daft, 2016)

3.0 Market Segmentation

3.1 Product

Electronic Arts EA sells a wide range of products, allowing customers to choose the
product that best meets their needs. It provides products that are significantly
differentiated, with features that competitors do not offer to customers (Marketing Mix,
EA, 2019).

3.2 Prices

EA has accounted for an income of $ 1.15 billion in the quarter which is an increase of
7.4% year-over-year contrasted with income of $ 1.07 billion in a year ago. It anticipates
that its gross margin was 72.1% in the year 2017. It was 69.2 % in 2016 and 68.3% in
2015. (Pricing strategy by EA, 2017)

7
 3.3 Place

EA games can be bought from websites easily. Users can purchase them via mobile
and desktop computers. It has an omnichannel distribution strategy, in which its online
and offline stores are integrated to give customers easy access to its products
(Marketing Mix, EA, 2019).

3.4 People

Electronic Arts employs personnel who have been trained in persuasion techniques and
who play an important role in the company's marketing efforts. It also has people
working in the customer service department. If there is a problem with the item, the
procurer contacts these people, and they advise the procurer through the process of
fixing the problem (Marketing Mix, EA, 2019).

3.5 Process

Orders are received through the computer system by EA's online delivery system.
Based on these orders, the necessary commodities from the inventory are dispatched to
the delivery service provider. To provide confirmation to EA that products are easy to
obtain in retail places, the system was implemented so that traders can notify their new
products if they are available. They are about to be unapproachable or they already are
(Marketing Mix, EA, 2019).

3.6 Promotions

EA promotes their products using a variety of media platforms, including television and
radio commercials. It creates its income from deals of computer games. Its biggest
piece in services provided which represented 68% of absolute income in 2019
(Marketing Mix, EA, 2019).

3.7 Physical Evidence

EA's products come in an understated color design that makes them stand out on retail
shelves. These square measures attract exceptional racks given by the organization
that to boot have a clear shading and arrangement. This helps buyers easier to look for
such retirees in crowded shopping establishments.

8
4.0 Recommendations

4.1 Products

EA is expected to introduce new items that are in line with current market trends. EA
needs to get better its product packaging such that it is more expedient to transport and
use; and also, be visually tempting so that customers are attracted to it. EA must make
longer additional benefits for purchasing its products which includes guarantees, after
sales services, helpline administration. It should test newly introduced products before
commercializing (Marketing Mix, EA, 2019).

4.2 Price

EA should provide discounts and allowances to be a focus for customers which can be
done by plummeting a percentage off the price of the products. It can use psychological
pricing where its prices products so that they seem to be lower. EA should introduce a
price strategy where it offers an initial lower price than other competitors to gain market
share (Marketing Mix, EA, 2019).

4.3 Place

EA can use the social media platform to sell its product which will help EA to engender
more sales. It should make sure that it sells its products to large retailers through
personal selling which will help in increasing its sales. It can open a company operated
retail store which will help in saving costs for the company as a merchant (Marketing
Mix, EA, 2019).

4.4 Promotions

EA should hire influencers or celebrities on social media and use them in its
advertisement commercials to increase the reception of the product. It should tolerate
an assortment of digital marketing techniques to perk up online traffic. It should collect
data of customers and make sure that products and services are being operated without
any interruptions (Marketing Mix, EA, 2019).

9
 4.5 People

EA should make available proper training for its sales force, customer service and other
peoples who play an important role in delivering value to the customer. It should provide
good payment to its sales force through bonuses for meeting targets or through
commissions for the sales made. Employees should show respect towards customers
and must be committed to the company (Marketing Mix, EA, 2019).

4.6 Process

EA should be convinced that its commodities are always obtainable at retail stores and
that frameworks are in place for retailers to let know them when their stock levels are
petite. It offers them a lot of things whereas requesting its creations to recharge its
stock. This guarantees that item square measures analytically within reach to procure
are considered necessary (Marketing Mix, EA, 2019).

4.7 Physical Evidence

EA ought to collect reaction from its customers concerning the products and services
with the intention that it could improve when needed. It must determine its own stores,
where it provides a friendly environment and ambience encouraging its purchasers to
shop for the item.

10
Reference

1. Arts.E, 2021, About EA. [online] Electronic arts Inc.

Available at: https://www.ea.com/about

[Accessed 28 April 2021]

2. ca.Indeed.com.2021. Working at electronic arts:employee reviews about pay and

benefits| Indeed.com. [online]

Available at: https://ca indeed.com/Electronic Arts/reviews?ftopic-=pay benefits)

[Accessed 3 may 2021]

3. Day Translations Blog. 2019. How Electronic Arts Expanded Around the World.
[online]

Available at: https://www.daytranslations.com/blog/electronic-arts

expandedaroundworld/)

[accessed 1 may 2021]

4. Essay 48. 2019. Marketing Mix Electronic Arts EA. [online]

Available at:https://www.essay48.com/term-paper/14003-electronic-arts-EA-
Marketing-Mix)

(Accessed 2 may 2021)

5. Fredericosei.blogspot.com, 2016, Marketing Mix; EA GAMES (ELECTRONIC

ARTS).[online]

Available at: https;//fredericosei.blogspot.com/2016/11/marketing-mix-ea-games-

electronic-arts.html)

[Accessed 2 May 2021].

11
6. Funding universe, com. 1995. History of electronic arts Inc.- Funding universe.
[online]

Available at: https;//www.fundinguniverse.com/company-histories/electronic-arts-

inc-history/)

[Accessed 3 may 2021].

7. Wilson, A., 2021, [online] Media. Content api.ea.com.

Available at:
https://media.contentapi.ea.com/content/dam/eacom/corporate/docs/2020-impact-
report.pdf)

[Accessed 30 April 2021].

12
Critical Reflection

I have been playing EA sports video games since childhood but never knew what EA
meant. While writing this report I got to learn a lot about Electronic Arts. I came to know
about various marketing strategies used by various business organizations for their
success. I mainly learned about the strategies made by EA to get success in the recent
market, which included a marketing mix strategy which is 7Ps. My knowledge before
writing this report and after finishing this report is very big. This experience gained much
more knowledge about brands, games which we play on PC and mobiles.

This report writing experience has been positive for me and I have learned very much
about report writing. I learned about how we used to look outside the circle and do
research on as many sources about the topic as we can. This has obviously increased
my writing skills. I Am sure that I am going to do better in my upcoming assignments as
well.

13