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.  

  

Chapter 8: Segmenting and Targeting Markets

The Xbox 360 is a part of a rapidly growing Gaming Market that is expected to reach 117.9 Billion dollars by the year 2015 and is worth more than 74 Billion as of July 2011. In compliance with our text book MKTG 5 Student Edition the definition of a Market is "people or organizations with needs or wants and the ability and willingness to buy". This is only but one of the many interpretations of Marketing but it boils down to needs or wants and the ability to buy if these two requirements are met along with other factors such as successful market segmentation then a Market can strive.
 Marketing Segmentation- One of the major Marketing Segmentation's in the Gaming Market is made upon different age groups. The markets are divided by age. In reference to a chart that I presented in an earlier post (shown below) the ESRB rating group created a rating system to divide content amongst different age demographics.

 

ESRB rating chart for video games

Based on the content within each game Microsoft is then able to choose which age groups to target. The children will be targeted for the sale of rated ec games while ages 13+ will have rated T games marketed towards them. This way the segmenting and targeting of consumers is made in an effective and appropriate manner.

   

Chapter 11: Developing and Managing Products

Microsoft along with 24 other globally recognized companies (Apple,IBM,Google, etc.)  were mentioned by Business Week and Boston Consulting group as some of the worlds top leading innovative groups. The article expresses some of the perks that these companies have over many others including higher average stock returns and higher average revenue growth compared to other companies that lacked an innovative edge.
Microsoft's New product the Xbox Smart Glass (Compatible with the Xbox 360) is one of Microsoft's newest additions to Microsoft's Plethora of gaming products and innovation.

The Xbox smart glass is still in the introductory stage of the life cycle as it was just released a month ago. Some of the innovative features include:

-Data transfer

-Dual Screen Display

-Data Sync

As well as many other features of the Xbox Smart Glass that can be experienced through the use of Mobile Phones or Tablets running Operating Systems Microsoft OS, Android Jelly Bean 4.2, and Apple IOS 6.

Microsoft Smart Glass serves as a second screen which can be used to see additional information for TV shows and gaming.

Chapter 16: Integrated Marketing Communication

Promotion is key in a products marketing mix. Without it consumers would not be aware of current products/services on the market. Promotional integration in Microsoft's Xbox 360 is important due to the fact that the Xbox 360 is a technological product and needs promotional depth in order to shed light on the systems functions, specs as well as other properties that are not grasped at first by the naked eye.

The Microsoft Xbox 360's competitive advantage over it's competitors the Sony PS3 and the Nintendo Wii are the following:

Xbox 360's competitive advantage over the Sony PS3:

-High Grossing (Xbox Exclusive) Franchises such as: Halo, Gears of War, Fable, Kinect Adventures, and MineCraft which have combined sales that Exceed more than 70 million copies sold as November.

-First to the punch: The Xbox 360 was the first system to integrate Netflix as a part of the overall gaming experience. The fluidity of Netflix is therefore maximized due to the fact that it has been on the system longer and patches were created to fix any errors in comparison to on the Nintendo Wii and The Sony PS3 which experience lag from time to time.
-Xbox Live: The Xbox Live online service is the premier online service for gamers of all kinds. The Xbox Live service has dedicated servers that allow it to run smoothly and with minimal lag so that players can stream data and play games with other players across the globe seamlessly with no problem.
Microsoft uses different types of promotional tools within its promotional mix. Some of these include:
Advertising-The Xbox 360 advertises it's console the Xbox 360 through commercials, blogs, websites and word to mouth communication.  

Sales Promotion-The Xbox 360 is on sale for the holidays. On the official Microsoft website the Xbox is available in Holiday Bundles that start at $249.00 that is $50.00 off of the retail price. The holiday bundles come in 3 forms.
-Xbox 360 Slim 250GB console $249.00 with 2 games (Kinect not Included)
-Xbox 360 Slim 4 GB console $249.00 with 2 games (Kinect Included)
-Xbox 360 Slim 250 GB console $349.00 with 2 games (Kinect Included)

The methods in which Microsoft reaches potential and existing customers is through the process of communication.
Communication-The process by which meanings are exchanged or shared through a common set of symbols.
Mass Communication-The way that Microsoft is able to reach many of it's new and existing customers is through the web. There are more than 1 billion internet users across the world and with this huge pool of people to work with the world wide web serves as a very important tool in reaching potential customers.

Chapter 10: Product Concepts

Microsoft's Xbox 360 gaming system falls under consumers product. It is purchased to satisfy the individuals personal want's.
The Xbox 360 slim (shown below) is a product item by Microsoft within their video game product line. The Xbox 360 comes in two forms the original released in 2005 which comes in two color variants white and black with two storage capacitive options (20GB,120GB). The Xbox 360 underwent product modification to improve performance and to make it a more viable option over the Sony PS3 and the Nintendo Wii. Some of the modifications in the new Xbox 360 slim had were the following.
-Integrated Wireless WiFi integration allowing players to seamlessly connect to the internet at faster speeds.
-Touch activated On/Off button and Disc Tray sensor for gamer convenience.
-Kinect Capability for full use of the Kinect motion gaming experience.
-Modified slim design with more cooling vents to keep optimal performance and stability of the system constant. 
All of this as well as the fact that the memory variants are available in two versions as well (4GB,250GB). The 250GB version is 130GB greater than the previous systems highest capacity of 120GB. Within the width of Microsoft's product mix are computer software, online services as well as video games.
The release of the new Xbox 360 slim was in an attempt of planned obsolescence make it's predecessor the Xbox 360 (Elite) obsolete in the eyes of gamers.

The Xbox 360 (Elite) 2005 (Before)

The Xbox 360 Slim (2010-Present) (After)

The Xbox 360 is it's own brand under Microsoft. It is represented by a circle to represent 360 degrees and the X within the circle represents a new edgy take on gaming. The green surging the circle represents human energy.

The Xbox 360 Logo

 

Chapter 18: Sales Promotion and Personal Selling

Microsoft's Xbox 360 serves millions of gamers and tech enthusiasts around the world. But the Xbox 360 would not be as successful as it was without the loyalty of it's existing customers that upgraded from the last generation console The Xbox (2001-2004) as well as newcomers that just wanted a top quality gaming and entertainment system all in one.

Microsoft accommodates both it's existing customers as well as it's new customers with some perks that are hard to find on any other gaming platform.
Xbox silver (Xbox online service membership-Free)
With Xbox Live Silver members are able to:
-Communicate with other members online as well as video chat.
-Share media and online content to other Xbox Live members.
Xbox Gold (Xbox online service membership-$50.00 a year)
With Xbox Live Gold members are able to use all of the perks of Xbox Live silver members as well as:
-The ability to play multiplayer online with other Xbox Live members across the world.
-Entries into online raffles and contest for prizes ranging from games to vacations.
-Special online content such as Microsoft points which can be used to purchase games avatar items and customization items.
Special Sales:
Microsoft has on the Xbox 360 is the 50% off deal: When customers purchase Xbox Live Gold Service ($15/Month) for two years 50% is taken off the purchase of your Xbox 360.

Also available for the upcoming festivities are the Holiday Bundles. The Holiday Bundles available are great gifts for those who want to experience a premier gaming experience and Microsoft makes it more affordable for those who want to get their hands on exclusive titles such as: Gears of War and Halo by reducing the price of the Holiday Bundles by $50 dollars.   

With all of these sales Microsoft has made it easy to bring home the next generation of gaming and entertainment that is the Xbox 360.

Chapter 17:Advertising and Public Relations

Advertising: A form of communication for marketing and used to encourage and or persuade an audience to continue or take a new action.

Microsoft's Xbox 360's Advertising appeal: Fun and Pleasure- Microsoft has taken a fun and pleasure styled advertisement appeal under their wing. This is primarily due to the fact that the Xbox 360 is a entertainment console and this advertising approach is more involving. It relates to the gamers while advertising to new incoming potential gamers as well.

Microsoft Advertising on the Xbox 360's Xbox live Dashboard.

                        

            Advertisement for Microsoft's new feature Xbox Smart Glass

Microsoft's Xbox 360 Execution style for Advertising: Lifestyle, Fantasy, as well as Mood or Image.

Microsoft's Mediums:  Microsoft spans its Advertisements mainly through the web as well as broadcast TV. In a growing digital age Microsoft is able to advertise through these two mediums as well as on Microsoft's Xbox 360 online service Xbox live. Through Xbox live players are met with a number or advertisements pertaining to Microsoft and its offerings as well as other companies and franchises such as MC Donald's, Coca Cola, etc.

Trending Advertisements: Microsoft is advertising their product the Xbox 360 as well as it's consoles service Xbox live.
Microsoft's Pioneering Advertising: Microsoft will release its new app Xbox smart glass on October 26th. In turn Microsoft has started an advertising campaign touting the features and benefits that this new application reaps as well as the platforms that it will be available on. According to the official Microsoft website this app will be available on Windows 8 devices, apple iOS 6 and android 4+ operating systems.

Public Relations: Microsoft's public relations are condensed in the areas of press relations, product publicity and public affairs.
Press Relation: Microsoft's Xbox 360's new feature Xbox Smart Glass has released various information to the media regarding it's features and the ways in which it can simplify multitasking and maneuvering across various forms of entertainment. These include music, gaming, surfing the web, and media sharing. As explained in the video above. This as well as the key note speech for the Xbox smart glass has given the gaming and entertainment world something to look forward to, simplicity of technology through Xbox smart glass.