Chapter 7: Business Marketing

  Microsoft's Business Marketing to their Xbox 360 is performed in different ways. One of the ways that they use business marketing is by giving their products to gaming companies such as IGN, Game Informer, Machinima and it's partners as well as other game magazine publishers for testing. These systems are then tested for there performance and are rated upon functionality, ease of use, performance, designs, graphical engine etc. After these systems are assessed they are given a rating out of 10 as well as critique on what could be improved as well as it's strong points. These critiques are then used by potential customers to choose which video game console suits them best out of the different Xbox 360 variants.  

Microsoft also participates in Business Marketing through it's sale of Xbox 360 consoles to other companies such as: Best Buy, P.C. Richards, Radio Shack, Toys R' Us as well as other organizations. These companies then sell them forward and make profit.

E-Commerce 

Microsoft has integrated the use of internet to it's product the Xbox 360 as well as to the their methods of operations. The Xbox 360 uses Xbox Live to connect users around the world. This in itself is Business Marketing as players are able to reach other players and spread the word about these consoles to other people, businesses etc. 

Some ways in which Microsoft has expanded their range as well as increased their sales is through the use of the internet. Through the use of websites, blogs, online threads and pod casts people are able to easily find information regarding this technology and what it has to offer. But this does not come without competition. Fellow game companies Nintendo and Sony have also incorporated the use of the internet to increase awareness and sales of their products the Nintendo Wii and Sony's PS3.

Microsoft has created strategic alliances with manufacturing giants: Flextronics, Wistron and Celestica. The alliance with these companies allow mass production of the Xbox 360 parts at a much lower cost. Some of the pieces made in China include the plastic outer shell as well as the wiring that runs within the console itself.

Due to it's long track record Microsoft is regarded as one of the most successful companies in America. The amount of trust that consumers have for Microsoft exceeds that of most companies around the world and therefore creates a loyal consumer base for years to come.