Abstract

This case is about the marketing and promotional strategy adopted by Microsoft Corporation (Microsoft) to support the launch of its Internet-based services package, Microsoft Office Live (Office Live). With Office Live, Microsoft sought to help small and medium businesses (SMBs) harness the power of the Internet to grow their business. Microsoft used Rovion Inc.’s proprietary and patent-pending InPerson technology for the online advertisement campaign of Office Live. The case discusses the reactions of analysts and marketing experts to the advertisement campaign and the pros and cons regarding the use of InPerson technology. The case also looks at the market for Web-based services and Internet-enabled software for SMBs as well as the competitive landscape in this segment. The case also looks at the reasons for Microsoft’s strategic shift toward providing Internet-based software and services and its growing competition with Internet-based firms such as Google, Inc., and Yahoo!, Inc.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges faced by IT companies in targeting the small and medium businesses market
• Understand the need for innovative marketing strategies to attract the attention of customers spread across different industry verticals and geographic regions
• and Discuss the pros and cons regarding the use of Rovion’s InPerson technology for the online marketing campaign of Office Live. Understand the issues and challenges faced by a mature business organization to keep itself abreast of the changes in a dyna

Keywords

Microsoft Office Live, Microsoft Corporation, Rovion Inc., Google Inc., InPerson Technology, Information Technology, Small and medium businesses, Marketing Communications Strategy, Internet-based software, Unique selling proposition, Strategic shift, Buzz marketing, Loss leader strategy, Pull strategy, Branding, Search marketing, Innovation, Business model, Target marketing, Microsoft Office Accounting Express