Chapter 7: Business Marketing

Razer products have not normally been aggressively marketed toward business and enterprise. Thus so far the thought and convention has been that Razer accessories were more expense products, but this they are changing though. Razer is on the way to expand their popularity and finally sees a market in enterprise and a chance to possibly compete with huge companies such as Logitech or Alienware, especially with the potential of the new generation of portable computer- Razer Switch Blade.

Razer sales have grown 84% since 2000, reaching $30 billion in 2008. Razer's gross margin increased to 52% in 2008. up from 50,2% and 51% in 2007 and 2006, respectively. Razer earned $3,4 billion in net income in 2008, marking a 100% increase since 2000. They operated at a 14,1% net profit margin in 2008, up from 10% in 2007, mainly because of increased prices.

With the series of Gaming Mice, Razer is one of the largest seller of Gaming Grade mice worldwide by sales. Opening a whole new era for gaming accessories, Razer are trying to appeal to gaming enterprise as much as the consumer, whereas in before the target was mostly the end consumer, as that was the core of Razer market. They reinvented the computer gaming industry by bringing this competitive edge to gamers when professional computer gaming was in its infancy. They are wrking with many winning pro-gaming teams to co-develop their line of gaming such as Team Pandemic, Serious Gaming, Mousesport, Team World Elite, Team Dignitas and many more.
They have been working on with many retailers such as BestBuy, J&R, even e-companies such as Newegg.com or Buy.com, etc. expanding their business all over the world. Razer is a company rooted i competition. With the finest Gaming Hardware in the world, they are continuously inproving their financial performance. They are dominating their competitors. Razer has helpded consumers and stakeholders alike to realize product and financial greatness. And they will continue to expand their product lines and marketing reach to become a more powerful global brand.

Chapter 8: Segmenting and Targeting Markets

A Market Segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Razer has combined strategies of selecting and segmenting target markets. The technology market is always changing and moving forward so Razer uses various of techniques to attract consumers all around the world.

Apple uses strategies for segmenting markets such as Geographic Segmentation in the placement of their main bases. There are over 10 stores in all around the world in order to concentrate consumer in one place. The concentration helps Razer to understand customers wants and needs. Beside, in some ways, they DO use Demographic Segmentation in order to define groups of people who are mostly like to buy their products. They are definitely focusing on a certain target market.Razer has used Concentrated Targeting strategy to select a market niche for targeting its marketing efforts. Razer has been working on developing different product lines and product mix that might bring more benefit. Obviously, they are targeting to a group of people-Gamers and it seems that they has been quite successful. Even though the market of technology is hard to target, but they always try to bring the competitive edge for every gamer all around the universe.

For Gamers. By Gamers.

Team Razer.

All L33T. All yours.

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Chapter 11: Developing and Managing Products

Managers have better chance of successfully marketing products if they understand how consumers learn about and adopt products. An innovation is a product perceived as new by a potential adopter. It really does not matter whether the product is "new to the world" or some other category of new product. If it is new to a potential adopter, it is an innovation in this context. Nowadays, Razer and its products have been described as innovative by delivering competitive edge to gamers.

Innovation is the key to new product development and Razer has worked on it. They don't necessarily develop products that did not exist before. Keyboard and Mice are the most important accessories for people who use computer. Razer is not the first company which is producing computer accessories. So what makes them so different from other competitors? What makes them so innovative?

The truly great products are based on technology, designed with extensive human factors and users ergonomic studies and then tested by the top professional gamers. In simpler terms, their own world class scientists and engineers develop cutting edge technology in-house or with partners, design phenomenal products around core technologies- and test them in the field with their pro-gamers before they launch them.

Razer Mamba

Razer's products are not only known by the attractive appearance but also the functional design. For instance, the new Razer Mamba has upgraded with gaming grade wireless technology and 4G Dual Sensor System which is outfitted with a laser and an optical sensor to accurately calibrate the mouse to any surface for exceptional pinpoint tracking. For many people, Razer's mouses and keyboards are just regular computer accessories, but for gamers, those are their best-friends.

Chapter 16: Integrated Marketing Communications.

The ultimate goal of any promotion is o get someone to buy a good or service or, in the case of non-profit organizations, to take some action. A classic model for reaching promotional; goals is called the AIDA concept. The acronym stands for attention, interest, desire, and action- the stages of consumer involvement with a promotional message.

Attention.
Razer attracts attention from potential buyers by creating attractive main site flashed with the signature black and neon green colors that have been accompanying, with plethora of advertisements in gaming magazines such as PC Gamers, by sponsoring countless gaming tournaments from around the world like e-Sports, and by recruiting a large army of provocative models. Every new product of Razer is always highly anticipated among the gaming community.

Interest.
By sponsoring gaming tournaments, Razor can introduce its new products for gamers to try in the field. These gamers after having tried these products first-hand would then served as voluntary advertisers for Razer during post-tournament interviews.

Games Convention Asia 2007

Desire.

By constantly integrating new technologies into and designing better outlooks for its products, Razer edges its competitors with palm-fitting mouse with mini numpads for better gaming performance, light-in-the-dark keyboard for late-night hardcore players, and superior designs accessories for art lovers.

Action.

Razer is working toward better popularity among the ordinary buyers by reaching out to new markets, better communicate with the public via social networks, provide offers and promotions for loyal customers to bring forth better satisfaction.

Razer is taking concrete and effective steps to prove its worth in the gaming community.

Chapter 10: Product Concepts

I have been working on Razer for more than half of the semester and discovering the strategy, advertising, retailing, and products, the way consumers view Razer and its products. Razer has the variety of products that support human beings, specifically, gamers. Therefore, it is really hard to define one specific type of product.

Razer Mouses

An Razer product can be called a shopping product rather than a convenience product because it is more expensive if comparing with other products. But Razer product enjoy the status of specialty products because of its selective. As i have stated before that Razer's target market is gamer, therefore not all of consumers know about Razer. But whenever talking with gamers, they definitely know about Razer. Try it! Rarely does a company sell a single product; more often it sells a variety of things. Razer does not sell only one specific product, but they do sell one type of product but different in appearance and performance. For instance, they sell many kinds of mouse such as Razer Mamba or Razer Naga Epic; it depends on the needs of customer.

Razer Switchblade

The way Razer has been marketed and branded consumers do have this concept of an Razer product being a specialty product. Those that are Razer users are very reluctant to accept substitutes and Razer definitely has an exclusive image. Razer is a brand that is totally different from the other lines. Razer is quality, is essential and exclusive. The direct experience from gamers all over the world can prove that message. Any customer ( including my self) would feel the differences. Although Razer products are more expensive and have this very stylish, elegant but customers still feel it's reachable and accessible. This brand has been successful for a few year; and now they are taking a big step into the technology world by releasing the Razer Swithblade-the true first portable laptop.

Chapter 18: Sales Promotion and Personal Selling

In addition to using advertising, public relations, and personal selling, marketing managers can use sales promotion to increase the effectiveness of their promotional efforts. Razer actually gives consumer many promotion. They do not have aggressive campaign like other companies such as Dell or Asus, but they do give the consumer what they expect from the promotion.

Many companies are using the method of giving customers chances to have free shipping. And Razer is doing that way too, at the moment they are offering the deal of free shipping for order above $50. There was one promotion that whenever we order anything from gosugamers.net, we will get a Free Razer beanie. One of their most popular promotion campaigns had been Free Razer Attitude T-shirt+ Free Shipping for order above $150. They also offer many exclusive promotions fro royal customers.

While most of Razer's products are selling online and retailers, they do not really have personal selling. But they do have customer services that help customers to be able to choose the right products.