GOOGLE INC. MARKETING REPORT

GOOGLE INC. MARKETING REPORT

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Table of contents

Executive summary …………………………………………………………3

Introduction…………………………………………………………………..4

Goals and objectives ………………………………………………………..4

Stages in the planning process……………………………………………….5

PESTLE analysis……………………………………………………………6

SWOT analysis………………………………………………………………8

Marketing objectives …………………………………….…………………9

SMART marketing objectives ………………………………………………9

Marketing strategies ……………………………………………………….10

Control and evaluation …………………………………………………….13

Conclusion ………………………………………………………………….14

Appendix ……………………………………………………………………15

References ………………………………………………………………….19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Summary

This report aims at providing sustainable marketing strategies for Google Inc. Google Inc. is a multinational corporation that specializes in the provision of internet-related products and services. Advertising is the focal point of Google Inc. services. The company is positioned in the search engine industry with competitors such as Yahoo, Bing and MSN. The political, social, technological, economic relatively favor the company to increase overall market share. Google Inc. has more opportunities and strengths as compared to weaknesses and threats. Google also has unique advertising techniques and search solutions. The establishment of a firm and sustainable marketing strategy is important to increase the market share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

Google has been credited as the global leader among search engines. Millions across the world are connected with information by Google. Google Inc was established in 1998 with a mission to organize vast amounts of information that are available in the internet. Since inception, the company has introduced and enhanced innovations. The Delaware Corporation has grown to form a large collection of services and products. Internet users demanding accurate and fast internet searches are also on a steady growth worldwide. The company has also expanded to the hardware market with the sale of android phones. It has also broadened services through mergers and partnerships. Google records increase in revenue as competitors such as Yahoo decline. Google has also established an extensive marking strategy in order to promote products and limit competitors.

Goals and Objectives

Google’s mission is to organize online information and make it available to every individual. It also has the vision of being the most famous search engine globally. Google has formulated a strategy that aims at creating a suitable climate for innovation. The strategy focuses on users and establishes partnerships to increase potential. Google aims at making the internet searching experience the best consumers. In addition, accuracy of search results is guaranteed. The corporate culture adopted at Google is informal. The corporate philosophy aims at increasing productivity with less focus on formal styles of dressing and working. The company is also engaged in philanthropic programs through Google.org.

The goals and objectives are

• Improved infrastructure in order to boost productivity of engineers
• Promote the Google ad system
• Push content and opportunities
• Ensure Google tools are functional everywhere
• Focus on innovation
• Become the best in search globally

Stages in the Planning Process

The marketing planning process involves development of objectives and provides specifications for accomplishment. There are basic steps that are involved in the planning process. The basis of market planning involves the determination of the objectives of the organization. Objectives provide the description and direction of all aspects of the organization. In addition, they provide a system of evaluation of performance. Organizations should formulate SMART (specific, measurable, attainable, realistic and time-specific) goals. SMART goals instituted by an organization act as the foundation for the formulation of marketing plans and objectives.

Assessment of organizational resources is undertaken after determination of marketing objectives. Resources in an organization encompass capabilities in finance, marketing, production and personnel. Evaluation of these aspects helps in the determination of strengths and weaknesses. Strengths are useful to set and formulate plans to meet objectives and take advantage of prospects for marketing. Weakness in resources inhibits an organization from benefiting from marketing opportunities. Risks and opportunities are also determined after assessment of organizational resources. Marketing opportunities are influenced by environmental factors such as political, economic, social, technological and legal issues. Positive factors increase marketing opportunities. However, these opportunities are limited when there is a negative environment.

Opportunity analysis leads to the formulation of suitable marketing objectives. These objectives are designed for the development of a marketing plan and the achievement of general organizational goals (Kotler & Armstrong, 2012, p.124). Marketing planning should focus on the establishment of flexible, resource efficient and adaptable marketing strategies. The marketing strategy becomes the overall organizational program for selection of a specific target market. In addition, satisfaction of consumers of this segment of the market is part of the strategy. The final stage involves implementation and monitoring of the marketing plans. Feedback is used to monitor the plan.

PESTLE Analysis

 

 

Political	Policy issues by government complied with the creation of a Privacy Center. Unpopularity with governments such as China pressures Google to censor search results.	Threat	Chinese government may limit or create censorship mechanisms for Google leading to loss of the expansive Chinese market.
Economic	Highly targeted and measurable advertising boosts profits. Global recession and the Euro zone debt crisis. Economic growth in emerging markets such as China and Brazil.	opportunity	Increase in customer base from advertising programs. Financial stability and profit increase despite periods of financial crisis compared to competitors
Social	Increase in internet use across diverse age groups, gender and cultures. Increase in internet entertainment needs such as music downloads, fashion, social networking, online services and sports.	opportunity	Has the opportunity to expand customer base and the use of Google products. Google+ provides opportunity to increase revenue in the rapidly growing social media market.
Technological	Web applications and technology that are adaptable to changes Computers have become more affordable particularly in third world countries leading to increase in internet use worldwide	opportunity	Increase in intellectual property with the acquisition of Motorola Mobility. Boost for profits through sale of android devices.
Legal	The US Department of justice has mounted pressure on Google to relinquish search items that are in their archives. Copyright issues as the site contains copies from third party images and web pages.	threat	Legal battles may reduce popularity and strengthen competitors.
Environmental	Increase in global population provides market for Google.	opportunity	Growth and control of the massive internet market

 

Table 1.1 shows the PESTLE forces for Google Inc.

 

Despite pressure form China, formal institutions across the globe have not had negative implications on Google Inc. operations. Google has collaborated with the United States Copyright Office to provide links that are suspected of infringement. This has helped to address concerns from customers. Technology companies such as Google are an isolated case in the period of financial crisis because of the need to stay constantly informed. Internet search is neither gender nor age specific and Google will not be affected by social changes. Google has also joined the smartphone market with introduction of Android phones. This is essential towards maintaining relevance in a constantly changing technological environment. Innovative business model adopted by Google continues to promote success regardless of environment.

SWOT Analysis

 

 

Strengths Among most popular brand names worldwide Strong brand loyalty. Best search engine globally A search engine that is easy to use. Reliable and easily accessible with internet enabled devices. Google provides an ideal platform for advertising.	Weaknesses Dependency on search-based advertising to increase profit margins limits revenue. Multiplication of information increases cost of data storage. Lack of cooperation and compliance by some foreign governments has led to poor market penetration.
Opportunities Google Inc. has prospects to reach new segments and users. Opportunity for expansion with the availability of Google search on handheld devices. Google+ inclusion in social media will increase advertising revenue. Google has the opportunity to enhance innovation through acquisition of companies. Prospects for future expansion to new markets such as T.V.	Threats Google faces potential lawsuits that arise from privacy concerns.   Competitors such as Bing have prospects to increase market share.   Pressure form Chinese government may lead to loss of the Chinese market.

 

Figure 1.1 shows the SWOT analysis for Google Inc.

Google Inc. faces numerous threats and weakness. Pressure form China may risk loss of close to 16 percent of the market share. Failure to address these issues may increase opportunities for major competitors such as Yahoo. Broadening the opportunities is crucial towards maintaining dominance in the industry. Internet dependency has increased over time and Google will be part of this dependency. Google should be part of the global internet revolution in order to increase investment for the future.

Marketing Objectives

Marketing objectives provide a clear definition of the goals of marketing activities undertaken by an organization (Kotler, 2012, p.98). The four main factors to consider include product, price, place and promotion. Providing consumers with a product that suits their needs is important. Price should be determined based on wholesale, retail and the rates of competitors. Places where the commodities are sold are essential towards reaching the target market conveniently. All aspects of advertising such as packaging, brochures, sales methodology and sales people are included in promotion. These aspects form a combination of factors to form marketing objectives and reach the target market.

Google Inc. should focus on product and promotion. Google Inc. provides a wide array of products to consumers. These products supply advertising, educational and entertainment services. Some of the major products from Google include Google Scholar, iGoogle, Google Finance, Google Docs and YouTube. The objective of these products is to reach a wider market and suit the various needs of consumers. Evolution of the internet also enables Google to create products that are adaptable to changes. Promotion increases awareness of products. Google uses multiple promotion mechanisms such as AdWords in internet links, magazines, promotions and television. Public relations function is a key component of the organization. Product promotion is essential for the formulation of SMART marketing objectives by Google Inc.

SMART Marketing Objectives

SMART marketing objectives are used as blueprints for creation of efficient and effective marketing campaigns. SMART objectives are specific, measurable, achievable, realistic and timed. Google Inc formulates marketing objectives that are achievable and realistic. Specific objectives have helped Google to focus on particular goals and maximize efficiency. Google focuses on a product orientation strategy in order to increase market share. This has helped to identify market vacuums and manage customer relations. This marketing strategy is cost-effective. Marketing synergies incorporate customer-care points within and outside the organization. Marketing is undertaken through the existing network of operation that is realistic.

Marketing Strategies

The main types of marketing strategies are

1. Market leader strategies
2. Market follower strategies
3. Market challenger strategies
4. Market niche strategies

Market leader strategies are best suited for Google Inc. the company should focus on market leadership in the search engine industry. This is done through market expansion. The company has applied strategies that will increase customers over competitors such as Yahoo and Bing. Google has also developed language specific applications that have a global outlook. Google has also undertaken acquisition of over fifty companies to expand the service range. The establishment of global presence was a similar strategy by Yahoo when it previously dominated the market. However, the expansion strategies towards the android market also increase capability in market dominance. Market leader strategies also limit the opportunity for competitors to increase their market share. These strategies also help Google Inc. to capitalize on quality and retain customers.

Marketing plans are the basic instruments used in the direction and coordination of the marketing process. They operate on a tactical and strategic level.

The main parts of the marketing plan are

• Situational analysis
• Setting goals and objectives
• Formulation of marketing strategy
• Marketing tactics
• Formulation of budget
• Establishment of controls

The marketing plan aims to examine the macro-forces that exist in the environment. In addition, a SWOT analysis is undertaken to identify both internal and external factors that affect the organization. After the situational analysis, the company sets goals and establishes a timeframe for achievement. A strategy is formulated to carry out the market leader strategy. Specific individuals and activities are established as tactics for the marketing strategy. The planned activities involve costs, which lead to a budget for the realization of objectives. Review periods and measures are set to ensure progress and create control mechanisms. The objectives, actions and strategies are revised when performance is low.

Google Inc. financials

(In millions, except share amounts, which are reflected in thousands and per share amounts)

	Full Year		2013
			(unaudited)
Revenues	2011	2012	Q1	Q2
Google Websites	$26,145	$31,221	$8,640	$8,868
Y/Y Growth Rate	34%	19%	18%	18%
Q/Q Growth Rate	NA	NA	0%	3%
Google Network Members’ Websites	$10,386	$12,465	$3,262	$3,193
Y/Y Growth Rate	18%	20%	12%	7%
Q/Q Growth Rate	NA	NA	-5%	-2%
Total Advertising Revenues	$36,531	$43,686	$11,902	$12,061
Y/Y Growth Rate	29%	20%	16%	15%
Q/Q Growth Rate	NA	NA	-1%	1%
Other Revenues	$1,374	$2,354	$1,049	$1,046
Y/Y Growth Rate	27%	71%	150%	138%
Q/Q Growth Rate	NA	NA	27%	0%
Total Google Revenues	$37,905	$46,039	$12,951	$13,107
Y/Y Growth Rate	29%	21%	22%	20%
Q/Q Growth Rate	NA	NA	0%	1%
Total Motorola Mobile Revenues	NA	$4,136	$1,018	$998
Y/Y Growth Rate	NA	NA	NA	18%
Q/Q Growth Rate	NA	NA	-33%	-2%
Total Consolidated Revenues	$37,905	$50,175	$13,969	$14,105
Y/Y Growth Rate	29%	32%	31%	19%
Q/Q Growth Rate	NA	NA	-3%	1%
As % of Google Revenues
Google Websites	69%	68%	67%	68%
Google Network Members’ Websites	27%	27%	25%	24%
Other Revenues	4%	5%	8%	8%

 

 

Table 2.1 shows the financial tables from Google Inc. (Investor Google, 2013)

Advertising revenue

The following table presents our consolidated revenues by revenue source (in millions):
.
.		Three Months Ended				Twelve Months Ended
.		December 31,				December 31,
.		2011	2012			2011	2012
.		(unaudited)					(unaudited)
.	Advertising revenues:
.	Google websites	$7,294	$8,640			$26,145	$31,221
.	Google Network Members’ websites	2,880	3,436			10,386	12,465
.	Total advertising revenues	10,174	12,076			36,531	43,686
.	Other revenues	410	829			1,374	2,353
.	Total Google revenues (advertising and other)	10,584	12,905			37,905	46,039
.	Total Motorola Mobile revenues (hardware and other)	–	1,514			–	4,136
.	Consolidated revenues	$10,584	$14,419			$37,905	$50,175
.
.

 

Table 2.2 shows the advertising revenues for Google Inc. (Investor Google, 2013)

The total revenue for Google Inc. reached $50 billion in 2012. The Unites States online advertising market was dominated by Google to grow by 14.9%. Marketing costs are consistent with GAAP without deduction of traffic acquisition costs (TAC). In 2012, TAC amounted to $3.08 billion. Advertising revenues were $12.91 billion, which was 89% of total revenues within the fourth quarter. This was an increase compared to 2012. Overall advertising revenues increased.

Google should spend more on the next fiscal year with respect to marketing. Marketing revenue is set to increase by 10% within the first quarter. However, decline in advertising prices pose risks for increasing revenue. Competition will also reduce revenue as sites such as Bing increase in popularity.

Control and Evaluation

Implementation of an extensive marketing plan is enhanced through control and evaluation. Actual performance of the marketing plan is assessed and outcomes are projected. Marketing control involves the establishment of standards and appropriate course of action. This involves inspection of budgets. Deviations from the budget are also investigated. This is important for companies such as Google to prevent the misuse of funds. Positive and negative deviations from the budget should be a major cause for concern. The main types of control are the annual plan control, efficiency control, profitability and strategic control. Management has the responsibility to exercise control. The annual plan control process is essential to assess performance. Sales analysis, marketing expenses, market share expenses, efficiency and profitability are assessed to guarantee effectiveness.

Controls are important for the improvement of efficiency. Efficiency is assessed from various aspects such as sales force, advertising, sales promotion and distribution. Efficiency is tested with key indicators from the sales force with respect to cost, revenue and sales. Marketers should regularly track the progress of the advertising strategy. Research methods that are operational such as inventory control define the economies of distribution. An effective sales promotion campaign is reflected in the sales results. Controls are useful towards establishing the impact of the promotion campaign. Marketing control is crucial to management in establishing the effectiveness of the marketing plan and opportunities for improvement.

Evaluation involves the analysis of ongoing or completed activities within an organization. Absence of evaluation in the marketing plan to forces it to become inefficient. Marketing activities by an organization such as Google Inc. measure the results of the marketing plan against the original targets and objectives (Emery, 2012, p. 132). Continuous evaluation is important to aid the marketing team to concentrate on product modification. In addition, evaluation helps to introduce new approaches towards the achievement of objectives. This promotes flexibility to market changes. Evaluation results are essential towards improving market share of companies. New markets can also be created from the process.

Conclusion

The success of Google Inc. is dependent upon the marketing plan and strategy of the corporation. Market research and analysis sets the basis of understanding the market. Innovative solutions and product development has increased the market share. In addition, the approach has attracted millions of consumers globally. However, Google Inc. should constantly improve products and innovation to advance the opportunities available in the internet market. Threats from competitors such as Bing should not be overlooked. A successful marketing strategy is determined by core competencies and the marketing mix that is developed and implemented by Google Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix

 

Political	Policy issues by government complied with creation of a Privacy Center. Unpopularity with governments such as China pressures Google to censor search results.	Threat	Chinese government may limit or create censorship mechanisms for Google leading to loss of the expansive Chinese market.
Economic	Highly targeted and measurable advertising boosts profits. Global recession and the Euro zone debt crisis. Economic growth in emerging markets such as China and Brazil.	opportunity	Increase in customer base from advertising programs. Financial stability and profit increase despite periods of financial crisis compared to competitors
Social	Increase in internet use across age groups, gender and cultures. Increase in internet entertainment needs such as music downloads, fashion, social networking, online services and sports.	opportunity	Has the opportunity to expand customer base and the use of Google products. Google+ provides opportunity to increase revenue in the rapidly growing social media market.
Technological	Web applications and technology that are adaptable to changes Computers have become more affordable particularly in third world countries leading to increase in internet use worldwide	opportunity	Increase in intellectual property with the acquisition of Motorola Mobility. Boost for profits through sale of android devices.
Legal	The US Department of justice has mounted pressure on Google to relinquish search items that are in their archives. Copyright issues as the site contains copies from third party images and web pages.	threat	Legal battles may reduce popularity and strengthen competitors.
Environmental	Increase in global population provides market for Google.	opportunity	Growth and control of the massive internet market

 

Table 1.1

 

Strengths Among most popular brand names worldwide Strong brand loyalty. Best search engine globally A search engine that is easy to use. Reliable and easily accessible with internet enabled devices. Google provides an ideal platform for advertising.	Weaknesses Dependency on search-based advertising to increase profit margins limits revenue. Multiplication of information increases cost of data storage. Lack of cooperation and compliance by some foreign governments has led to poor market penetration.
Opportunities Google Inc. has prospects to reach new segments and users. Opportunity for expansion with the availability of Google search on handheld devices. Google+ inclusion in social media will increase advertising revenue. Google has the opportunity to enhance innovation through acquisition of companies. Prospects for future expansion to new markets such as T.V.	Threats Google faces potential lawsuits that arise from privacy concerns.   Competitors such as Bing have prospects to increase market share.   Pressure form Chinese government may lead to loss of the Chinese market.

 

Figure 1.1

 

 

	Full Year		2013
			(unaudited)
Revenues	2011	2012	Q1	Q2
Google Websites	$26,145	$31,221	$8,640	$8,868
Y/Y Growth Rate	34%	19%	18%	18%
Q/Q Growth Rate	NA	NA	0%	3%
Google Network Members’ Websites	$10,386	$12,465	$3,262	$3,193
Y/Y Growth Rate	18%	20%	12%	7%
Q/Q Growth Rate	NA	NA	-5%	-2%
Total Advertising Revenues	$36,531	$43,686	$11,902	$12,061
Y/Y Growth Rate	29%	20%	16%	15%
Q/Q Growth Rate	NA	NA	-1%	1%
Other Revenues	$1,374	$2,354	$1,049	$1,046
Y/Y Growth Rate	27%	71%	150%	138%
Q/Q Growth Rate	NA	NA	27%	0%
Total Google Revenues	$37,905	$46,039	$12,951	$13,107
Y/Y Growth Rate	29%	21%	22%	20%
Q/Q Growth Rate	NA	NA	0%	1%
Total Motorola Mobile Revenues	NA	$4,136	$1,018	$998
Y/Y Growth Rate	NA	NA	NA	18%
Q/Q Growth Rate	NA	NA	-33%	-2%
Total Consolidated Revenues	$37,905	$50,175	$13,969	$14,105
Y/Y Growth Rate	29%	32%	31%	19%
Q/Q Growth Rate	NA	NA	-3%	1%
As % of Google Revenues
Google Websites	69%	68%	67%	68%
Google Network Members’ Websites	27%	27%	25%	24%
Other Revenues	4%	5%	8%	8%

 

Table 2.1

 

The following table presents our consolidated revenues by revenue source (in millions):
.
.		Three Months Ended				Twelve Months Ended
.		December 31,				December 31,
.		2011	2012			2011	2012
.		(unaudited)					(unaudited)
.	Advertising revenues:
.	Google websites	$7,294	$8,640			$26,145	$31,221
.	Google Network Members’ websites	2,880	3,436			10,386	12,465
.	Total advertising revenues	10,174	12,076			36,531	43,686
.	Other revenues	410	829			1,374	2,353
.	Total Google revenues (advertising and other)	10,584	12,905			37,905	46,039
.	Total Motorola Mobile revenues (hardware and other)	–	1,514			–	4,136
.	Consolidated revenues	$10,584	$14,419			$37,905	$50,175
.
.

 

Table 2.2

 

 

 

References

Emery, B. (2012). Sustainable marketing. Harlow, England, Pearson.

Investor Google. (2013) Financial Tables. [Online]. Available at: <http://investor.google.com/financial/tables.html> ‎[Accessed 15 August 2013].

Kotler, P. (2012). Marketing management. Upper Saddle River, N.J., Prentice Hall.

Kotler, P., & Armstrong, G. (2012). Principles of marketing. Upper Saddle River, N.J., Prentice Hall.