Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 4, 1995 TAG: 9507050096
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: SEATTLE LENGTH: Long
The legacy of Microsoft Corp.'s Windows 95 ultimately may be in marketing rather than technology.
The company, whose promotional work sets the pace in the hype-driven software industry, already has spent $70 million extolling the product, which won't go on sale until Aug. 24.
Most of that was for events and trade shows that stirred coverage in publications read by influential corporate software buyers and distributors. Now, Microsoft is ready to begin TV and other advertising aimed at the broader consumer market.
Analysts say the company eventually will spend $150 million to $200 million advertising the product. Other software companies, personal computer makers, wholesalers and retailers jointly will spend at least another $200 million, easily making Windows 95 the most heavily-pitched computer product.
Fearful the expectations they have set are likely to outweigh the technical performance of Windows 95, Microsoft's executives have started to backpedal a bit.
``It's clear that the hype factor for Windows 95 got out of hand,'' Brad Silverberg, the Microsoft senior vice president responsible for the product, started telling reporters last month.
``It's not a floor wax, it's not a dessert topping,'' he said, recalling an old ``Saturday Night Live'' joke. ``It's just Windows.''
But Windows is the program that runs the basic functions of 80 million existing personal computers and is installed on eight out of 10 new PCs. The company has not produced a major new version since 1990. Its August release will come just in time for the biggest selling period of the year in computers.
In an astonishing illustration of the stature Windows 95 has taken, a news story that Microsoft was delaying its shipment to PC makers sent the Dow Jones industrials average down about 22 points briefly last week.
Technology stocks have been leading the overall market and Windows 95 is viewed as key to continuing the growth of that sector. Stocks recovered within 30 minutes, when it became clear there would be no delay.
A Justice Department investigation into Microsoft's intention to include the program for accessing its new on-line service with Windows 95 has also caused some uncertainty about final delivery.
However, Microsoft has said it is prepared to take the on-line program out if that's what it takes to keep Windows 95 on schedule.
For industry insiders and computer enthusiasts, there are few surprises remaining about the product. Microsoft has had 40,000 people testing the program since early last year and it sold 400,000 $30 preview copies this spring. The final version is expected to cost around $100.
Articles in trade magazines as far back as summer 1993 contained details about features of Windows 95. The first glimpse of the program's look and style came in a trade magazine's cover story more than a year ago.
``This is a product that's been marketed by press release,'' said Al Ries, a marketing consultant in Great Neck, N.Y. Late last week, for example, one of the company's public relations agencies told Washington reporters about remarks Senate Majority Leader Bob Dole made that were critical of the Justice Department's review of Microsoft.
Through February and most of March, Microsoft issued a press release each day about a PC maker that planned to install Windows 95 into its future machines. Early last month, it hosted several hundred reporters for a three-day reviewers conference.
Other marketing efforts:
70,000 Windows 95 development kits sent to other software companies to encourage them to write programs that work in conjunction with Windows 95.
Thousands of ``migration planning kits'' and ``deployment kits'' were created to encourage companies and government agencies to update their computers with the program.
Midsized auditoriums and civic centers were rented this May in 24 U.S. and Canadian cities for a ``World Tour'' to promote Windows 95 to consumers. A similar tour targeted corporate software purchasers last year.
Microsoft rented 70 movie theaters across the United States on June 15 for software developers to watch a live eight-hour satellite telecast on the latest changes to the product.
`Traincast,'' a series of training programs, is broadcast to corporations and anyone else with access to a satellite dish. Some people have taped the programs and show them on local cable access stations.
Microsoft Press, the company's publishing subsidiary, has put out 16 books and programming guides about Windows 95.
Few products in recent memory come close to the marketing of Windows 95. Last year, a partnership of Procter & Gamble Co. and Syntex Corp. spent $100 million to launch Aleve, a new pain reliever. Their work allowed the product to grab a 5 percent share of a crowded, competitive market.
by CNB