Marketing Audit

Grand Theft Auto

Group 8

Section 9

By: Christina Hoze, Jonathan Lund, David Cibrian, Fidel Oropeza, Kiersten Stafford

MARKETING AUDIT COMPONENTS/SECTIONS

I. Marketing Audit Questions: Initiating the Marketing Process (Chapters 1, 2, 3 and 4)

1. Company mission statement a. What is the company mission statement? “At , we focus intently on quality and content to proudly produce exactly the kind of games we would want to play ourselves.” Rockstar games main focus, based on their mission statement, is to create the highest quality possible game. b. Is the product you chose to analyze in line with the company's mission statement? Absolutely, GTA V is Rockstar’s biggest online game that has produced more than $1 Billion in microtransaction sales. This game has also sold more than 115 million copies world wide, and is still consistently generating microtransactions. GTA V is able to do this because they’re creating the highest quality games for their consumers to enjoy, they’ve been successfully implementing their mission statement into every game they make since they were first founded.

2. The present status of the company/product a. How is the company/product situated in terms of its competencies, customers and competitors? is situated very highly for customers, past players know to expect a high quality game every time that Rockstar releases a new one. ’s biggest competitor is the game Witcher 3 which sold nearly 10 million copies world wide, far behind Grand Theft Auto’s 115 million copies sold.

3. Product(s) position within the company. a. Is the product a star, question mark, cash cow or dog in terms of the BCG matrix? Grand Theft Auto is a cash cow in terms of the BCG Matrix. The game has been out for over 6 years and in the gaming world this is a very long time. The game is certainly reaching maturity and fans are asking for another to be released soon. They dominate the market share for games and continue to bring in revenue through microtransactions.

4. Company/product growth a. How will the company/product grow in the future? Use the Market Product Strategy Matrix (Figure 2-5) to determine future growth. Products grow in multiple ways. The Grand Theft Auto product will continue to grow through product and market development. Grand Theft Auto continues to consistently roll out updates for its online platform so they can continue to receive microtransactions. The game itself remains the same but the players now have an option to pay for packages that include in-game currency, cars, and character skins. Grand Theft Auto has is also constantly working on other versions of the game so countries that have previously banned the game will remove the ban. The US and Japanese versions of the game are slightly different because of the amount of character violence. This video shows many more differences between the US and Japanese versions of the game, https://www.youtube.com/watch?v=wmZgOfBRZn0. ​

5. Environmental scan (5 environmental forces) a. How will the following environmental forces affect your company/product? Describe them in terms of opportunities and threats to the company/product. i) Demographic shifts and cultural changes Demographic shifts would significantly impact the Grand Theft Auto franchise. The games are rated M by the ESRB, so as the demographics get older more people would be able to purchase a game from the Grand Theft Auto franchise. The Grand Theft Auto games portray fictional cities and cultures that parody our real world cities and cultures. As our real world culture changes, new opportunities emerge for content to make new games in the franchise; however, Grand Theft Auto is no stranger to controversy. If our culture changes in a way so that games that are rated M are massively frowned upon and boycotted, the Grand Theft Auto franchise would be massively threatened. ii) Demographic conditions and consumer income There is an opportunity for the Grand Theft Auto franchise to attempt to appeal more to the female demographic. Consumer Income affects who can purchase a title in the Grand Theft Auto franchise. Older titles in the franchise are more economically friendly for consumers, and thus accessible to a bigger audience; however, when a new title in the franchise is released, it will most likely be priced at $60 retail, which alienates those that cannot afford the price tag. iii) Changing technology and technology’s impact on customer value With changing technology, the Grand Theft Auto franchise can continue to improve its already impressive visuals and . The impact these changes have on customer values will greatly improve the pre-order sales and premium edition sales for any future titles in the franchise. iv) Type of competition faced in company’s/product’s industry and how this might change in the future Grand Theft Auto is a unique video game franchise that doesn’t tend to have much competition in the ; however, there have been video games in the past that attempt to replicate the Grand Theft Auto formula. These so-called “GTA Killers” always fall short in sales and ratings. In the future, I don’t see the franchise running into any competition as the major companies in the video game industry tend to avoid releasing new games around the release date of a new Grand Theft Auto game. v) Regulation impact on the industry/company/product Since Grand Theft Auto is a video game franchise, it has to conform to the ESRB and their regulations. In the past, the Grand Theft Auto franchise has had to carefully tip-toe around the ESRB in order to successfully release their games. These regulations also limit what kind of content can be put into new titles of the video game.

6. Situation analysis for strategic marketing a. What are the company/product strengths, weaknesses, opportunities and threats? Provide a SWOT matrix for your company focusing specifically on your product. – Note: ​ You should have numerous strengths, weaknesses, opportunities and threats. ● Strengths Most games in franchise boast vast open worlds, numerous awards won in the industry, great name recognition amongst demographics ● Weaknesses Heavily criticized by media, massive development and marketing costs ● Opportunities Upcoming release of next generation of video game consoles will lead to increase sales for future releases in the franchise, can continue to add content to the massively popular to entice more players to purchase the game ● Threats Every new release causes outrage in certain communities and with certain parent groups, franchise is banned in numerous countries b. How has the company used strengths to take advantage of market opportunities? The Grand Theft Auto franchise features vast open worlds which are very popular amongst the gaming community, which has led to the breaking of numerous media sales records by the Grand Theft Auto franchise. Numerous awards in the gaming industry attract a bigger audience to the franchise. Grand Theft Auto’s name recognition allows the opportunity of saving money in marketing.

7. Ethical and social responsibility a. Does the company have a published/visible code of ethics? From that code, what appear to be the important values of the company? The Grand Theft Auto franchise does not have a published code of ethics. Furthermore, the franchise tends to be highly controversial as it does not shy away from featuring adult content or controversial topics. b. What ethical issues face the company/product? Each new release in the Grand Theft Auto franchise brings controversy and debate. In the past, several groups have come out against the franchise. In the most recent release, Grand Theft Auto 5, the franchise has been criticized for depicting graphic and interactive scenes of torture and for its unfavorable depiction of women. c. What would a social audit tell us about the company/product? A social audit of the Grand Theft Auto franchise would tell us how much it cares about its fans. Grand Theft Auto 5 features the “Social Club”, which allows players to earn in-game items, rewards, and achievements. It also rewards players for their loyalty to the Grand Theft Auto franchise by offering free content in the games exclusive to members of the Social Club.

Sources Question 1 - Rockstar Games Mission, Vision & Values - https://www.rohttps://www.pcgamer.com/grand-theft-auto-onlines-new-casino-update-in- inaccessible-to-more-than-50-countries/ckstargames.com Question 2 - https://www.tweaktown.com/news/68622/gta-still-revenue-monster-115-million-copies-s old/index.html - https://www.pcgamer.com/the-witcher-3-has-generated-dollar50m-in-revenue-on-/ Question 3 - https://www.tweaktown.com/news/68622/gta-still-revenue-monster-115-million-copies-s old/index.html - https://www.neowin.net/news/gta-online-continues-to-be-a-significant-cash-cow-for-take -two-interactive/ Question 4 - https://www.youtube.com/watch?v=wmZgOfBRZn0 - https://www.pcgamer.com/grand-theft-auto-onlines-new-casino-update-in-inaccessible-to -more-than-50-countries/ Question 5 - https://socialclub.rockstargames.com/ - https://medium.com/super-jump/the-appeal-and-intense-boredom-of-grand-theft-auto-bff 310783eb9 Question 6 - https://www.gamesindustry.biz/articles/2018-04-09-gta-v-is-the-most-profitable-entertain ment-product-of-all-time - Triple Rewards in the Arena War Series Question 7 - https://www.forbes.com/sites/insertcoin/2014/12/11/gta-5-and-the-ethics-of-mass-murder /#74b5a38f734d - https://www.startribune.com/the-ethics-of-gta-5/224271491/

II. Marketing Audit Questions: Understanding buyers and markets and targeting market opportunities (Chapters 5, 7, 8 and 9)

8. Consumer decision process a. Assume you were a typical new buyer of your audited product. How would you go through the five steps of the purchase decision process (the five steps shown in Figure 5-1)? 1. Problem Recognition I’m bored and just finished the video game I bought a few weeks ago. I need to buy a new one to fulfill my need for entertainment. 2. Information Search I only have money to buy one new video game so my purchase needs to be a good one. Grand Theft Auto 5 is the newest game in the best selling media franchise of all time. It has won numerous awards such as Game of the Year from numerous sources. It came out years ago, so the price is down from $60 to $20. It is an open world game where the player can do whatever they want and it includes a 100-hour long single-player story campaign as well as an Online game mode that is continuously updated to add new content. 3. Alternative Evaluation There are many other video games out there. I don’t want to pay more than $20 for a video game, so that eliminates all of the recent releases. A lot of $20 games are rated much lower than Grand Theft Auto 5. Very few $20 games boast an open world and a 100-hour long story to play through. It doesn’t look like any other game has an online mode that is still being updated years later and boasts thousands of daily active users still. I don’t think any other $20 game can offer me as much entertainment as Grand Theft Auto 5 can. 4. Purchase Decision All brick-and-mortar stores that stock video games have Grand Theft Auto priced at $20 since it came out many years ago, but still has a large fan base. I can buy it now for $20 or I can wait to download a digital copy of the game during a sale. The last time Grand Theft Auto 5 was on sale, it was priced at $9.99. However, I do not know when the next time a sale will be, so I’ll just go to the closest video game store and pick up a copy of the game. 5. Postpurchase Behavior I have been playing the game for a few days now and I am enjoying every second of it. I can now see why the game has won numerous awards and why the popularity of the game has not diminished since its release. I am very satisfied with my purchase of Grand Theft Auto 5.

9. Involvement with product a. What type of purchase process would you use to buy the product (see Figure 5-3)? Grand Theft Auto products tend to lean toward the high involvement purchase. If I were a consumer of their products, I would highly rely on word of mouth from friends and influencers to help evaluate alternatives like the limited problem solving process. b. Are there lower and higher involvement groups for the product? Who are they and how do they differ from you? A lower involvement group would be a first-time video game consumer influenced by passive information or in-store display . A higher involvement group would be an early adopter such as a video game reviewer on Youtube or a loyal consumer of the Grand Theft Auto franchise who would purchase any and all associated products.

10. Other influences on consumer behavior a. Examine any psychological, sociocultural or situational factors that influence the purchase of your product. Grand Theft Auto is known for its controversial and violent content. This can influence certain groups of people (older, religious those who have moral values) and those who are worried about what others might think of them if they purchase it. Opinion leaders like professional gamers or gaming reviewers are knowledgeable about our product and influence potential consumers to complete a purchase. Word of mouth from friends and peers are the driving force of influence to purchase our product. Once purchased it can also satisfy a psychological need for social connection with a group of peers and feeling in control.

11. Global marketing presence a. What type of global presence does your company/product have? Our products have a big global presence, especially throughout the and United Kingdom. “ was the sixth biggest selling game of 2018 in the US, the third biggest game in the UK and Europe..” “GTA totally deserves to be recognized as an icon of modern British culture, and we’re thrilled to be able to feature the game in the [Guinness World] record book.” However, some of Grand Theft Auto V’s features have been banned from more than 50 countries due to governmental restrictions, including: China, Greece, North Korea, etc. Listed countries in the link below are only allowed to enter and walk around the game’s casino but are not allowed to purchase chips. b. What is the overall importance of global sales to the company/product? Be specific, Global sales have accounted for the large market share in the video game industry and high total revenue. Grand Theft Auto V has sold over 120 million units worldwide, ultimately making over $6 billion in sales. As long as Grand Theft Auto maintains their global market, it will only increase viral marketing efforts, sales/revenue and establish widespread brand loyalty. c. Is your product marketed differently in different countries? How is it different? Grand Theft Auto V was not marketed differently in other countries. The product was promoted the same with press showings, cinematic trailers, television advertisements, viral marketing strategies and street art/murals. initially announced the production of the latest product of the Grand Theft Auto franchise years prior to its official release date in 2013. The hype created from marketing strategies increased anticipation for consumers and led to the success it still has 7 years post-release.

12. Marketing research a. What types of marketing research is the company involved in? Be specific and thorough here. Do they do qualitative research? Quantitative research? Primary? Secondary? What types of studies? Grand Theft Auto’s marketing research played a role in their production research as well. The marketing research found to promote upcoming products was often just the surface of the content that would be included in that which is being released. For example, primary quantitative research is used to capture over 250,000 photographs and countless hours of footage of multiple cities around the world just to use as the base content of the game. The results of their research is now multi purposeful and researchers can evaluate the quality of the footage and determine where the material can be used in upcoming projects. b. How will the research affect the marketing activities of the company? Again, be specific. What strategies and initiatives will be impacted by their research? This primary research is helpful to make the content seem more realistic and specific to audiences with big-world imaginations; the content taken from large cities such as , Salton Sea and the majority of Southern ’s countryside have a large role to play in this. Marketing with video trailers and press demonstrations really sell the wow factor. These marketing techniques were not limited to wall murals taking up 3 buildings in the downtown area. While there are some larger marketing techniques - such as the wall mural - Grand Theft Auto also uses viral marketing to reach potential buyers. Publishing advertisements to existing social networks to promote their product has been proven to be a successful marketing technique for the company's products and audience.

13 Positioning – Note: This is a critical component and should be at the core or your ​ ​ analysis. Consider answering this section first and then make sure that all other sections align with this. a. How is the market (buyers) for your product segmented? The gaming society has their own set of product segmentation due to the varying genres and social groups in the society itself. There’s competition here, room to grow and the ability to continue to push the standards: the complex marketing strategy Grand Theft Auto uses allows them to be at the top of the competition. The social integration in this product has multiplayer mode and encourages users to enjoy the game by virtually playing with others. Segmenting this product into age groups and other attributes gives us an understanding of the demanding audience. b. Who is the main target market for your product? Because Grand Theft Auto is a game based on violence and uses pictures of promiscuous women on covers, I would suggest that they are targeting males 16 years old and up. This is an important game in the virtual reality social group. Therefore, even though most versions of Grand Theft Auto are rated as 18+, it would not be difficult for an underage teenager to have someone purchase the product for them. The figure to the left shows a “bull’s-eye” pie chart visualizing the concentration of teenagers from 16-19 years old for this particular target market. The violent physicalities of the game draws the attention of those going through struggles and being in different classes - working through the classes throughout the game. c. What is the size of the target market? What is the size of the other market segments? The audience involved in this 16-19 years old market segment can also be subcategorized because of the complexity involved in this society. Other market segments are comparable by portraying real world events that include but are not limited to: social status, power, tecism, authority and crime as a whole. There is always the competitive pushing for new material; covering all new territory to create a new edge for the upcoming products. d. What is the potential for growth of the company's chosen markets? While new cities can be explored, the same idea of the product remains. There is potential growth in modifying communication software, heightened experiences, or climactic scenes. Working in the entertainment industry, there are endless opportunities to recreate emotional release for players acting in a fictional world. e. How is your product “positioned” in the minds of consumers? Write a positioning statement for your product following the format you learned in class. For 16-19 year olds, Grand Theft Auto is the action-adventure crime packed video game that provides an alternative reality for their audience so they can participate in crime related stimulations virtually because they want to experience being able to accomplish different levels just as they would in life. f. How are the competitors’ products positioned compared to your product? Grand Theft Auto supersedes other products in the market. Loyalty allows customers to continue to buy the new versions released regardless of cost. g. What would a positioning map look like for your products compared to competing products (provide at least one positioning map as an exhibit)? This positioning map on the left can be used as a guide to create one for Grand Theft Auto. Although this is a positioning map for a gaming console competitors; gaming consoles can be essential to playing any sort of video game. Therefore you can use this example to visualize how a positioning map would look like for video game competitors. Contenders such as or Red Redemption would also play a role on an action-adventure video game positioning map. h. What is the market share breakdown for your product and your competitors? Grand Theft Auto has a complex market share breakdown. Amongst its competitors, Grand Theft Auto has a variety of ways to invest in their company and the sub investments made inside the game as well. The Liberty City National acts as a shareholding stimulus in this video game and can be broken down based on the levels completed in “story mode” and other activities available throughout. i. What is your company/product competitive advantage in the marketplace? Based on the viral marketing that Grand Theft Auto uses with basic versions of their product, they use loyalty as an advantage. They can upcharge more than their competitors because of their unique content availability.

Sources Question 8 - https://store.playstation.com/en-us/product/UP1004-CUSA00419_00-GTAVDIGITALD OWNL - https://socialclub.rockstargames.com/events Question 9 - FACTORS CONTRIBUTING TO THE BUYING DECISION OF PC AND VIDEO GAMES - GTA 5 - All the Trailers Question 10 - FACTORS CONTRIBUTING TO THE BUYING DECISION OF PC AND VIDEO GAMES - GTA 5 - All the Trailers Question 11 - GTA V is the most profitable entertainment product of all time - Countries That Have Banned the New GTA Casino and Why - Grand Theft Auto 5 smashes 7 - https://www.forbes.com/sites/paultassi/2020/02/15/the-enduring-mystery-of-how-gta-5-h as-sold-120-million-copies/#25f52f091c7b - Marketing for Grand Theft Auto IV - Grand Theft Auto 5 Marketing Campaign Question 12 - https://en.wikipedia.org/wiki/Development_of_Grand_Theft_Auto_V#Research_and_ope n_world_design - https://en.wikipedia.org/wiki/Viral_marketing Question 13 - https://www.slideshare.net/liamrig95/product-and-target-audience-28666333 - https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.slideshare.net%2FEsmir3 2%2Fnintendo-wii-u-marketing-plan-49235061&psig=AOvVaw1YAwF8ytJ6aIRIa9mqucN R&ust=1586499701638000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCOCb2Yva 2ugCFQAAAAAdAAAAABAj - https://www.ign.com/wikis/gta-5/Stock_Market#GTA_Stock_Market:_Prime_Directive

III. Marketing Audit Questions: Developing, managing and pricing products (Chapters 10, 11, 12, 13 and 14)

14. Classification of products a. Is your product a good, service or idea? You should use the goods-services continuum to help you classify the product. Grand Theft Auto is considered a good because of the tangible process of using the software and interacting with friends/associates virtually. Having power to use the product and manipulate the software in any way available also somewhat provides a service by letting you interact with your social network virtually. b. In what category would you place your product: convenience, shopping, specialty or unsought? This video game can be considered a shopping product as well as a specialty product. The characteristics of the game classify it as a shopping product because people spend time comparing and carefully deciding with the action-adventure video game they will purchase. Specialty product demands such as the required gaming console can target a specific and even limited audience. c. How is your product classified within the company in terms of the company’s product line and product mix? Provide an exhibit that illustrates this. Grand Theft Auto has a long line of products. There are a variety of versions that have been released since it’s original. As each version is released numerically, the most recent example would be the release of Grand Theft Auto V. d. How would you characterize your product when it was introduced in terms of its innovativeness (Figure 10-2)? We can characterize Grand Theft Auto as unique because there is a specific combination of content taken from chosen areas. For example, not every virtual video game uses their unique combination of serial footage. e. How did the degree of innovativeness of the product impact how the product was first marketed? There was a large level of innovativeness based on the preview of released content. Ratings were positive and focused on the detailed work and reality of the game itself. Showing teasers of the almost life-like characters involved in the game only made the market more interested. f. Were there any problems with the introduction of your product? An unintentional promotion of violence did cause controversy in some households that were battling the nagging of younger children wanting to participate. Although it has become a household name, the controversial racial profiling, inapproriate treatment of women and high-risk virus software is infamous to a specific audience.

15. Managing the product a. Where is your product in terms of the product life cycle (Figure 11-1)? The Grand Theft Auto series is reaching the stage of maturity. This is quite impressive considering it’s been on top-selling lists since it’s original launch in 2013. Consumers of the latest product, Grand Theft Auto V, will soon be anticipating a new launch, if they aren’t already. b. Use the PLC graph of Figure 11-1 to describe how the stage of the life cycle impacts your product in terms of marketing activity In the maturity stage, the firm’s marketing action is to maintain brand loyalty, defend their market share through further product differentiation, and finding new buyers and uses. In regards to the Grand Theft Auto franchise, marketers should begin to harvest the declining product (GTA V) and develop a new release to branch off into a fresh product life cycle. This release should have modifications for global consumers and work to get around the in-game gambling ban in those restricted countries. c. Where is your product in terms of consumer adoption (Figure 11-5)? Who were the innovators and early adopters of your product? Grand Theft Auto V was adopted by early adopters who became the opinion leaders in their friend groups. They influenced the early majority and word of mouth spread to the late majority and laggards. The innovators are the Youtubers who post gaming content on their channels or review new releases of video games. The early adopters of Grand Theft Auto V are the viewers/subscribers of the Youtuber’s channel, who are sold on their reviews and the content of the game that they display. d. How has your product been modified or repositioned at any point to better serve customers? Did the company try to go after different customers by a modification of the product or a repositioning campaign? Yes, Grand Theft Auto V was modified to better serve customers in countries where the government controls content. For example, in Japan the product was modified in a way where its gameplay scenes that contained pornography or violence were either changed or cut completely. It was also modified to restrict in-game gambling for more than 50 countries (previously mentioned in #11). These modifications were made to access the global market. Since the launch in 2013, the product has been undergoing new feature updates consistently. The updates can modify settings, props, and add story scenes. Players can also customize modifications on dedicated servers. e. Describe your product’s brand personality? Grand Theft Auto V’s brand personality is fun, adventurous, satirical/humorous and expressive. Most people could argue that it’s rebellious as well. f. How has your product created brand equity? Grand Theft Auto V has created its brand equity by providing an open world where players can literally do whatever they want, including theft of cars. The anticipating hype from varying marketing strategies, controversy, and size of revenue and market share have proved to any curious consumer the premium price worth paying for. g. Describe your product in terms of its present and past branding strategy(s). Products prior to the latest release have always had the storytelling aspect of the game, following a single character throughout their day-to-day lives and trying to achieve success through missions. Grand Theft Auto V has a total of three characters intertwined in one fluid story plot. The concept of the game is the same but developers have made GTA more expressive and entertaining for the consumers. h. Are there any packaging qualities that distinguish your product (provide exhibits to illustrate your product’s packaging). Grand Theft Auto V’s packaging is informative. In the disc case you receive a code for the Criminal Enterprise Starter Pack, a manual and a map of the city that the game is based on (both for Playstation and One). The series of images portrays the endless opportunities the product may bring, including: danger, rebellion and suggestive content. Special editions are given to lucky/loyal consumers and Youtube influencers who create video game content. The packaging contains either a branded black box or a tote bag full of collectors items and props based on the product’s story plot.

16. Pricing strategies a. How is your product priced compared to the competition? Provide an exhibit comparing your product’s prices to the competitors. Grand Theft Auto is more expensive than some of its competitors; has been a popular comparison with the action-adventure video games. There are also several versions of Grand Theft Auto and there will continue to be updated versions released in the future that average at about $50 more than basic versions. Even then, Grand Theft Auto has been thought to be costing twice as much as Minecraft. b. What type of pricing policy did your product use: penetration pricing, prestige pricing, odd even pricing, target pricing, standard markup pricing, etc. There are some stores that Grand Theft Auto sells to that agrees to use market penetration. This allows the company to have a competitive price on the shelves and when the new version comes out, customers are more likely to be loyal and purchase it at a higher price. c. What are your products points of differentiation or points of difference? How have these points of difference affected the price of the product compared to the competition? Provide an exhibit that compares points of difference. An important point of differentiation is the overload of competitive content being collected during the research period. Competing action-adventure video games such as Redemption 2 are made by the same studio, Rockstar, but GTA still supersedes their level of freedom. d. Describe how your product creates value compared to the competition. The value of staying current and up to date with the version available increases the valued market share. Loyal customers will stay up to date simply due to the curiosity of the new content being released. e. Is your product classified as price elastic or inelastic? Explain. Discuss the price sensitivity of different market segments for your product. The inelastic demand of the video game category forces the market to stay competitive. Grand Theft Auto is no exception to this standard; their average market price stays along with other companies but they do have some leverage due to loyalty when it comes to new releases. f. Describe the product line pricing strategy for your product. The company focuses on engaging their audience in the pricing strategy. While investing in viral marketing, Rockstar is able to make their product well known across social networks. By offering preordering and bonus discounts, there is more incentive for loyal customers to keep up with the irresistible new version.

Sources Question 14 - https://marketing-insider.eu/4-types-of-consumer-products/ - https://www.youtube.com/watch?v=WdKI_og70VU - https://www.thegamer.com/problems-grand-theft-auto-choose-to-ignore/ Question 15 - Grand Theft Auto V was the best-selling game of the decade in the US - Grand Theft Auto V Premium Online Edition Unboxing! (PS4/) - ULTIMATE GTA 5 ROCKSTAR GAMES GIFT BAG UNBOXING! - Grand Theft Auto: V Gift Box from Rockstar Unboxing! - Grand Theft Auto Is Undergoing Major Changes On Steam Question 16 - https://gearcraft.us/10-reasons-minecraft-better-gta-v/ - https://www.youtube.com/watch?v=2eXOAdcZdGc - https://www.gamesradar.com/games-like-gta-grand-theft-auto/ - https://predictableprofits.com/market-like-rockstar-lessons-gta-v/

IV. Marketing Audit Questions: Managing marketing channels and communicating product ideas: Chapters 15, 17, 18, 19 and 20

17. Channels of distribution a. How would you describe the distribution channel for your product (direct and/or indirect channel)? Provide an exhibit illustrating channel levels (See Figures 15-3,4,5 for common channels) Grand Theft Auto uses an indirect distribution channel. They use Rockstar Games and other companies in order to distribute to their consumers. The order of distribution begins with Grand Theft Auto, then Rockstar Games, and it finally ends with either Xbox, Ps4, or PC. b. Does your product have an electronic marketing channel? If so, describe it. Yes, Grand Theft Auto incorporates an electronic marketing channel. They have made it so their product is available via internet or downloads. Consumers are able to purchase the product online without ever receiving a physical copy and disc, thereby utilizing an electronic marketing channel. c. Does your product have a dual distribution strategy? If so, describe it. Yes, Grand Theft Auto uses dual distribution strategies. Examples of marketing channels they use include platforms such as Youtube, commercial advertising, and promotion through console websites like Xbox and Ps4. d. If your company has a vertical distribution strategy, describe it. Grand Theft Auto uses a vertical distribution strategy with each level adding more to the product. Essentially Grand Theft Auto incorporated a strategy where they create the game, Rockstar publishes it and makes it playable for customers, and distributors like Xbox make it available for purchase. e. Does your product exhibit intensive, exclusive or selective distribution? Describe why your product was classified in one of the categories above. Grand Theft Auto exhibits intensive distribution. This is due to the fact that Grand Theft Auto tries to sell their product through as many outlets as possible. Grand Theft Auto is available on many platforms such as , Xbox Marketplace, Gamestop, and many other platforms. f. What are sources of tension or conflict in the distribution channel for your product? Why? The main sources of tension and conflict that arise in the distribution of Grand Theft Auto mainly lie in social issues. There have been many complaints and protests directed at distribution channels regarding the social issues that Grand Theft Auto encompasses. However, this hasn’t affected the product greatly and has had a minimal impact in sales and growth. g. In terms of supply chains, how does your product get to its final customers? Provide an exhibit to illustrate your supply chain (like Figure 15.9) The product reaches the final customers through convenient distribution channels. This includes being able to purchase the product directly on their selected gaming platform, or they are even able to purchase the disk through stores such as Gamestop and Best Buy. As far as supply chains, the price remains relatively the same wherever the consumer chooses to purchase it and luckily for the consumer, there are many different platforms they can choose to buy this product.

18. Marketing communications and direct marketing a. Does your product rely more on push tactic, pull or both? Describe the push and pull channel strategies for your product. Grand Theft Auto mainly relies on push tactics to advertise to their customers. Although they use pull as well, there is mostly a focus on using push tactics to lure in consumers. This is because Grand Theft Auto has appealed to a certain audience since its creation and they rarely venture out to a different consumer base. The reason for this is because a product such as Grand Theft Auto appeals to a certain group of people and there are many other people who strongly dislike this product. Some push strategies include making fans part of the game and offering pre-order bonuses to those already interested. One pull strategy they use however is guerilla style marketing where they use low cost marketing strategies, such as graffiting their product on walls, to reach out to new audiences.

19. Advertising, sales promotion and public relations a. Does your product exhibit both “product advertisements” and “institutional advertisements?” Give some examples of each. Grand Theft Auto exhibits mostly product advertisements. They promote their game through commercials and other media outlets. However, the Grand Theft Auto brand is owned by Rockstar, so institutional advertisements include anything Rockstar does to promote their brand such as advertising other games they have published. b. What media does your company use to advertise? Give some examples of each. Grand Theft Auto uses a variety of media to advertise. You can see their ad campaign on media such as , YouTube, Billboards, and other typical resources available to marketers. Since Grand Theft Auto is a video game, the majority of the media they utilize is based electronically and they rarely use physical forms of media to advertise. c. Based on your personal observations, what are some of the most effective ads for your product? Provide ad examples that illustrate your product’s position with specific target markets. Why do you think these ads are so effective? A few of our group members bought GTA V when it was released back in 2013. One of the most effective ads we noticed was simply through TV commercials, although they are not as effective today, back in 2013 we would always see commercials about GTA and be enticed to purchase the product. Since we were teenage kids, we fell into the target market and hence the ads were much more effective. GTA was a big hit when it was released and part of its popularity rose from kids wanting to play with their friends, requiring them to purchase the game to feel included. d. Does your company use consumer sales promotions for your product? If so, what promotions are used and are they effective? Provide illustrations. Yes, Grand Theft Auto uses consumer sales promotions. Some effective use of this is when they release an update for a game or extend the original game for the original or discounted price. In fact, GTA uses discounted promotion frequently to entice customers to finally purchase their product if they were unsure about it at first. e. Are public relations a part of the promotional mix for your product? If so, describe an example of a public relations piece and state how effective you think the piece was in terms of affecting the target audience. Public relations does not really have a big affect within Grand Theft Auto. Besides their customer service, Grand Theft Auto realizes that parents dislike their product and they definitely don’t have public relations at the top of their priority list. f. Describe your product’s social media platform. Grand Theft Auto encompasses a wide social media influence. Their main social media presence is on Twitter, in which they use to keep consumers up to date with their game and any changes they plan on making. Although GTA V was released in 2013, they still update it frequently and they use social media as a main platform to inform their customers of what is going on.

20. Personal Selling & Sales Management a. How does your company use personal selling? Be sure to include any sales efforts used to get distributors and retailers to carry your product (if relevant). Grand Theft Auto does not incorporate personal selling directly. However, indirectly customers advertise the product to their friends by influencing them to buy it so they can play together. Although GTA didn’t do this intentionally, it has proven to be very effective in increasing their growth. b. What kind of personal selling is used? Relationship? Order taker? Grand Theft Auto indirectly uses order-getting. This happens because customers influence others to purchase their product. c. Describe the sales process (steps in the sale) for your product. How would you sell the product (face to face) to a customer? Is selling more or less important in other parts of your distribution channel? Although Grand Theft Auto is typically sold without the use of a salesperson, there are times ​ where this can occur. The most likely scenario is a salesperson must convince a parent or guardian that the product is ok for their child to play. The sales process would go like this: Salesperson shows the product, salesperson explains the product, salesperson addresses customers concerns, salesperson handles objections, and lastly the salesperson will close and follow up with the customer. d. What is the USP (unique selling proposition) for your product? Grand Theft Auto’s USP is that it is different from any other video game. In this game you have much more freedom and you are not forced to play a certain way. This was a huge selling point for them and it is really what made their game such a huge success. e. How do your salespeople “create value’ for the customer? The salespeople are able to create value for the customers through entertainment purposes. The purpose of the product is to entertain consumers and therefore it is the salesperson’s job to show that to the customer.

Sources Question 17 - Grand Theft Auto: Sacrificing social issues for gameplay - https://thebrandgym.com/grand-theft-auto-v-criminally-successful-marketing/ Question 18 - https://predictableprofits.com/market-like-rockstar-lessons-gta-v/ - https://mpk732t12016clusterb.wordpress.com/2016/05/09/grand-theft-auto-v-and-its-adv ertising-campaign/ Question19 - https://blogs.uoregon.edu/j350grandtheftauto5launch/2013/12/10/pr-in-practice-the-emph asis-on-the-bad-to-generate-awareness/ - http://todhigh.com/clickandbuilds/WordPress/wp-content/uploads/2018/02/Rockstar-Ga mes-Marketing-GTA-V.pdf Question 20 - https://econsultancy.com/12-sales-tips-from-grand-theft-auto-s-hilarious-fake-adverts/ - https://rosssimmonds.com/business-lessons-gtav/