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.