Marketing Mix Of Skype and 7Ps (Updated 2024)

The Marketing mix of Skype analyses the 7Ps of Skype, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Skype. Internet phones have become a popular and in-demand gadget because of rapid development and growth in the IT sector. Skype is an application associated with the Internet industry. It is a service provider enabling video, voice, and text messages and calls. It was released in August 2003 and was created by Janus Friis and Niklas Zennstrom. In September 2005, it was acquired by eBay but is currently under the ownership of its parent company, Microsoft. Skype faces completion from the following.

• Whatsapp
• Talk Free
• Line
• Tango
• Viber

About Skype

• Type: VoIP (Voice over Internet Protocol) software
• Industry: Telecommunications
• Founded: 2003
• Founders: Niklas Zennström and Janus Friis
• Headquarters: Luxembourg City, Luxembourg
• Area served: Worldwide
• Current CEO: Philippe Delavoux
• Number of employees: Over 6,000
• Major products: Skype software, Skype for Business, Skype for Teams

Skype Product Strategy

Skype offers dual-nature voice calling and video chatting services. Initially, it featured a Client-server and Peer-to-peer operating system together, but since 2012, it has been entirely powered by Microsoft-operated super nodes.

The new Product Mix of Skype in 2024 is as follows (Source).

1. Voice and Video Calling: Skype allows users to make voice and video calls to other Skype users globally.
2. Group Calling: Supports group calls with a maximum number of participants.
3. Calls to Landlines and Mobiles: Offers the capability to make calls to landlines and mobiles at competitive rates.
4. Integration Options: Although limited compared to Microsoft Teams, Skype does offer integration with some telephony apps.
5. File Storage and Sharing: Allows file sharing during calls, storing files in OneDrive for Business or SharePoint, depending on the file sharing context.

Skype Pricing Strategy

Skype has adopted a model of Freemium pricing policy. It offers free Video and audio messages and calls to individuals and groups from one Skype app to another. Skype provides integration of professional collaboration and meetings with an office app at a starting price of 120 rupees per month in India.

Skype’s pricing direct marketing strategy can be summarized as follows:

1. Freemium Model: Skype offers essential services such as voice and video calls between Skype users for free, a crucial aspect of its market penetration strategy.
2. Paid Services for Additional Features: Skype charges users for advanced features like calling landlines and mobile phones, typically through a credit system or subscription model.
3. Competitive Pricing for International Calls: Skype offers competitive rates for international calls, appealing to users who make frequent overseas calls.
4. Subscription Packages: Skype provides various subscription packages tailored to different user needs, such as unlimited calls to specific countries.
5. Skype for Business: Integrated into Microsoft Teams, Skype for Business follows Microsoft’s pricing strategy, offering various tiers depending on organizational needs.

Skype Place Strategy

Skype caters to a global market that includes countries like India, Egypt, Argentina, Brazil, Canada, China, France, Germany, Indonesia, Italy, Malaysia, United Kingdom and the United States. It has its headquarters base in Luxembourg. Many members of its development marketing management team are located in Tartu and Tallinn, Estonia. Communication is accessible via Skype as it uses a voice call microphone, a video call webcam, and an instant messaging system to send SMS.

Skype has a large customer base with nearly six hundred million users. It is written in Delphi, C++, and C and is available in one hundred and eight languages. Operating Systems of Skype include MacOS, Windows, Xbox One, HoloLens, Windows Phone, watchOS, iOS, Blackberry, Android, and Linux. Skype has a vast distribution network that offers support via a support community, a web support portal, a Skype Facebook page, and @skypesupport on Twitter. Direct contact is possible via live chat and email.

Skype’s place strategy can be summarized as follows:

1. Global Availability: Skype is accessible worldwide, offering communication services across various countries and regions.
2. Digital Distribution: The application is available for download on multiple platforms, including Windows, macOS, iOS, Android, and as a web-based service.
3. Integration with Microsoft Products: Skype is integrated with various Microsoft products, enhancing its accessibility for users of the Microsoft ecosystem.
4. Enterprise Solution through Microsoft Teams: For business users, Skype’s functionalities are primarily absorbed by Microsoft Teams, a comprehensive enterprise communication solution.
5. Retail Presence: Skype credit and subscriptions can be purchased through online and retail channels, making it easily accessible for users who prefer physical purchasing options.

Skype Promotion Strategy

Skype has an apt tagline: The whole world can talk for free. It has adopted several marketing policies to create awareness and visibility. Skype has the support of its parent company, Microsoft, which uses print and social media marketing platforms to gain exposure for its services and products. Skype also depends on word-of-mouth publicity, where a satisfied client is its best advertising tool. It offers vouchers, Skype credit, gift cards, and discount options as part of its promotional policy. The free version of Skype is in great demand amongst schools and teachers for education projects.

Some Recent Video ads and Print ads for Skype are:

Skype People Strategy

The “People” element of marketing strategies in the service marketing mix for a company like Skype is crucial, as it encompasses all human actors who play a part in the service delivery and influence the customers’ perceptions and experiences. Here are some key points regarding the “People” aspect of Skype’s service marketing mix:

1. Customer Support and Service Teams: Skype’s customer support and service teams are vital, providing assistance and support to users. Their efficiency, friendliness, and effectiveness in resolving issues greatly influence customer satisfaction and loyalty.
2. Development and Technical Teams: The people behind Skype’s software development and maintenance are crucial for ensuring the platform’s reliability, user-friendliness, and innovation. Their skills and dedication to creating a seamless user experience directly contribute to Skype’s market position.
3. User Community: Skype’s user community, including individual and business users, plays a significant role in service improvement and innovation. User feedback, forums, and community support contribute to service enhancements and the development of new features.
4. Training and Development: Microsoft, Skype’s parent company, invests in continuous training and development for its employees. This ensures that the people representing Skype have the latest knowledge and skills to enhance service delivery.
5. Company Culture and Values: The culture within Skype/Microsoft and the values they uphold influence how employees engage with customers and each other. A culture that fosters innovation, collaboration, and customer-centricity is reflected in the quality of service provided.
6. Management and Leadership: The strategic direction set by Skype’s management and leadership team influences how the organization serves its customers. Their vision for the company shapes the service offerings and the overall user experience.
7. Sales and Marketing Teams: These teams communicate the value of Skype’s services to potential and existing customers. Their approach to understanding customer needs and crafting messages that resonate with different market segments is critical to attracting and retaining users.
8. Global and Diverse Workforce: Skype’s ability to cater to a worldwide user base is partly due to its diverse workforce. Employees from various cultural backgrounds contribute to a deeper understanding of different market needs and preferences, enabling Skype to tailor its services accordingly.

Skype Process Strategy

The “Process” element of the service marketing mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Skype, a leading telecommunications application that offers voice calls, video chat, and instant messaging services, among others, the process aspect of strategic marketing is integral to its user experience and operational efficiency. Here are some key points regarding the “Process” aspect of Skype’s service marketing mix:

1. Easy Sign-Up and Onboarding: Skype has streamlined its sign-up and onboarding process, allowing new users to create accounts quickly using an email address or a Microsoft account. This simplicity encourages more users to join the platform.
2. User-Friendly Interface: The design of Skype’s interface is intuitive, making it easy for users to navigate through different features such as making calls, sending messages, and managing contacts. This user-friendliness enhances the overall service experience.
3. Multi-Platform Accessibility: Skype’s process includes providing a seamless experience across various platforms, including Windows, macOS, Linux, Android, iOS, and web browsers. This ensures that users can access Skype services from any device, anywhere.
4. High-Quality Communication Services: Skype uses advanced technologies to ensure high-quality voice and video calls. The process automatically adjusts call quality based on the user’s internet bandwidth, ensuring a smooth communication experience.
5. Security and Privacy Measures: Skype’s processes include end-to-end encryption for calls and messages, safeguarding users’ privacy and security. The platform also implements regular security updates and user authentication measures to protect accounts.
6. Customer Support and Feedback Loops: Skype provides various channels for customer support, including live chat, email support, and an extensive online help center. The feedback loop process helps Skype to gather user feedback and address issues promptly, enhancing service quality over time.
7. Continuous Updates and Feature Enhancements: Regularly updating the software with new features, bug fixes, and performance improvements is critical to maintaining Skype’s competitiveness. This includes beta testing with users to refine features before a full rollout.
8. Integration with Other Services: Skype’s processes include integration with other Microsoft services, such as Outlook for scheduling calls and meetings and OneDrive for sharing files. This interconnectedness provides a more comprehensive and efficient service ecosystem for users.
9. Account Management and Subscription Services: For users who opt for Skype’s premium services, the platform offers a straightforward process for managing subscriptions, adding credit, and viewing call history. This transparency and ease of management enhance user satisfaction.
10. Localization of Services: Skype’s process includes localizing services to meet users’ linguistic and cultural needs worldwide. This involves translating the app into multiple languages and adapting to local market preferences.

Skype Physical Evidence Strategy

The “Physical Evidence” component of the service marketing mix encompasses the tangible or physical proof of the service and the environment in which the service is delivered. For digital services like Skype, physical evidence may not involve traditional physical spaces or objects but rather encompasses the elements that users interact with, contributing to their perception and assurance of the service quality. Here are some key points regarding the “Physical Evidence” aspect of Skype’s service and marketing strategy and mix:

1. Brand Identity and Design: Skype’s logo, color scheme, and overall visual design provide immediate physical evidence of its brand. The consistent use of distinctive colors and design elements across platforms reinforces brand recognition and trust.
2. User Interface (UI) and User Experience (UX): The design and functionality of Skype’s interface across devices provide physical evidence of the service’s quality and reliability. A clean, intuitive, and user-friendly interface enhances Skype’s perceived value and professionalism.
3. Website and Landing Pages: Skype’s official website and related landing pages are critical physical evidence. They offer detailed information about features, pricing, and support, while their professional design and navigation ease reflect the Skype service’s quality.
4. Mobile and Desktop Applications: The appearance, feel, and performance of Skype’s applications on various devices are physical evidence of the service. The seamless operation, feature accessibility, and software stability contribute to the user’s trust in Skype.
5. Marketing and Promotional Materials: Promotional materials such as ads, brochures, email campaigns, and social media content provide tangible proof of Skype’s offerings and brand promise, contributing to its image and user expectations.
6. Customer Reviews and Testimonials: Published customer reviews, and testimonials prove Skype’s service quality and customer satisfaction. Positive feedback from users across various platforms enhances credibility and encourages new users to try the service.
7. Case Studies and Use Cases: Documented case studies and use cases of Skype, especially in professional and business contexts, are concrete evidence of its applicability, reliability, and performance in real-world scenarios.
8. Help and Support Documentation: Comprehensive help articles, FAQs, and support documentation available on Skype’s website and within the app provide users with tangible assistance and guidance, reinforcing the service’s reliability and the company’s commitment to user support.
9. Community Forums: Active community forums where users can ask questions, share experiences, and offer solutions serve as physical evidence of Skype’s user base and the vibrancy of its user community, indicating a solid and engaged customer base.
10. Security Certifications and Privacy Policies: Publicly available information on Skype’s security measures, privacy policies, and any relevant certifications or compliance with standards (such as GDPR) is physical evidence of its commitment to user safety and data protection.

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