Microsoft restructuring its marketing efforts

By Kip Kniskern | In News | Posted January 11, 2012 12 comments

News is out today that Microsoft is apparently planning a restructuring of its marketing operations, according to an article in Bloomberg News.  While the move may cut “hundreds” of jobs, it is apparently aimed primarily at restructuring the “CMG”, or Central Marketing Group, to better respond to increasing competition in corporate computing from Amazon, Google, and Apple.  Mary Jo Foley reports hearing that as many as 40% of CMG may be cut (a number she finds “crazily high”), but also hears that some of those cut from CMG may be absorbed into the Windows Phone and Server and Tools orgs, as they restructure with new leadership.

Microsoft spends billions on marketing yearly, and Bloomberg reports that Steve Ballmer “doesn’t think the company is getting enough return on the billions it spends annually on marketing”, according to the sources.  The company last year promoted Chris Capossela to Chief Marketing Officer, and he’s been conducting a review of marketing operations, working with senior marketing executives like Tami Reller, who just demoed Windows 8 during the CES keynote, and Yusuf Mehdi from Xbox.  The restructuring may be set to take place within the next 30 days, according to Bloomberg.

We’re certainly encouraged by the strong marketing push being brought to Windows Phone this year, both by Nokia, and apparently by TMobile, too, as they roll out a Windows Simple campaign for the Nokia 710, as noted by WPCentral:

tmoad

Windows Phone marketing by Microsoft has been less than effective, so far, and any efforts by Microsoft to revamp its total marketing strategy seems like a good idea to us.

Posted January 11th, 2012 at 11:47 am
Category: News
Tags: Corporate Strategy, Marketing
  • tN0

    Really? That wrong “Microsoft” logo again?

    • http://www.LiveSide.net Kip Kniskern – LiveSide.net

      So much for grabbing the first image off of Bing Images :P

  • Anonymous

    Really? That wrong “Microsoft” logo again?

    • http://www.LiveSide.net Kip Kniskern – LiveSide.net

      So much for grabbing the first image off of Bing Images :P

  • http://twitter.com/Dowawado_ Dowawado.com

    As a loyal reader, I respectfully disagree with your last sentence. Simply because reducing Microsoft’s image problem only to its marketing people is, according to me, missing the point.  Some thoughts on this subject:
    http://www.dowawado.com/2012/01/11/microsoft-is-reorganizing-marketing-and-cutting-jobs/

  • http://twitter.com/Dowawado_ Dowawado.com

    As a loyal reader, I respectfully disagree with your last sentence. Simply because reducing Microsoft’s image problem only to its marketing people is, according to me, missing the point.  Some thoughts on this subject:
    http://www.dowawado.com/2012/01/11/microsoft-is-reorganizing-marketing-and-cutting-jobs/

  • CustomComputers

    Kip, Keep glancing to the right on this page or check Bloomberg in coming weeks. Bet you a drink that the red ink continues on line one & line four last column.  You know what I think about the CEO mentioned in your post!  Throw a billion here (Yahoo/Bing)), a few billion there (Nokia), 8 billion for something you do not have a clue what to do with (Skype).  Offer 33 billion for something that is today worth less than half that number (Yahoo again). One begins to see where the real problem lies!
    While Larry Page just “gets it done” quickly and efficiently.

    • Guest

      Sort of like he quickly and efficiently put Google in Oracle’s and the EU’s crosshairs? Yeah, brilliant.

  • Anonymous

    Kip, Keep glancing to the right on this page or check Bloomberg in coming weeks. Bet you a drink that the red ink continues on line one & line four last column.  You know what I think about the CEO mentioned in your post!  Throw a billion here (Yahoo/Bing)), a few billion there (Nokia), 8 billion for something you do not have a clue what to do with (Skype).  Offer 33 billion for something that is today worth less than half that number (Yahoo again). One begins to see where the real problem lies!
    While Larry Page just “gets it done” quickly and efficiently.

    • Guest

      Sort of like he quickly and efficiently put Google in Oracle’s and the EU’s crosshairs? Yeah, brilliant.

  • Guest

    MS’s marketing has sucked for a long time. Why didn’t Ballmer do something about it proactively instead of trying to fix it after the horse has left the barn? The real problem here is Ballmer. The board can keep ignoring it, as they have. But MS’s Yahoo moment is coming. When it does, I hope we see a complete house cleaning from Ballmer to Gates. What they’ve let happen to this company over the last twelves years is contemptible.

  • Guest

    MS’s marketing has sucked for a long time. Why didn’t Ballmer do something about it proactively instead of trying to fix it after the horse has left the barn? The real problem here is Ballmer. The board can keep ignoring it, as they have. But MS’s Yahoo moment is coming. When it does, I hope we see a complete house cleaning from Ballmer to Gates. What they’ve let happen to this company over the last twelves years is contemptible.