Microsoft Ready To Reorg Marketing Big Time, Analyst Says

by Laurie Sullivan, May 25, 2010, 4:06 PM

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Evidently, Steve Ballmer, Microsoft's chief executive officer, has had enough. Maybe that's why Microsoft in February appointed David Webster chief strategy officer, and Gayle Troberman chief creative officer, -- both new roles -- after somewhat of a reorganization earlier this year.

Webster was previously general manager, brand and marketing strategy. Troberman serves as general manager of advertising. Both report to Mich Mathews, senior vice president of corporate marketing. The new appointments and strategy will allow marketing team to work across campaigns to unify the message for the Microsoft brand.

With any new appointments high in the organizational structure, typically new blood is brought in -- people who have the same concept and leadership strategy to carry out their vision.

Global Equities Research Managing Director Trip Chowdhry says Microsoft should have started the reorganization in 2009 to fix internal problems and improve profitability in 2010. "They are one year late, but better late than never," he says.

Chowdhry points to Ballmer's distaste for several "marketing blunders." They begin with late product launches, inadequate online marketing strategies, inflated prices, and incorrect names chosen for Windows Server and SQL Server. Sources tell Chowdhry that Ballmer believes the latest products should have been named Windows Server 2010 and SQL Server 2010, as initially decided, rather than Windows Server 2008 R2 and SQL Server 2008 R2.

Some say marketing for the Windows and server division interfere with the Entertainment division, which many expect will get a makeover as well. Perhaps a Microsoft spokesperson did not return inquiries to confirm the shakeup because they had to deal with the resignation of Robbie Bach on Tuesday. The president of Microsoft's entertainment and devices division will step down from the company this fall. The executive launched and drove innovation for products such as Xbox and Windows Phone.

Don Mattrick, senior vice president for Microsoft's interactive entertainment business, and Andy Lees, senior vice president for the company's mobile communications business, will report to Microsoft chief executive officer Steve Ballmer beginning July 1, the company said.

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