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.

Chapter 15: Retailing

The Microsoft 360 availability nation wide is pretty common but only some stores are able to provide the full Xbox 360 hands on experience of allowing consumers to play and test out the system themselves. One of these places was Game Stop. Game Stop prides itself on the sale of vast amount of games made available to consumers of all ages as well as the sale of accessories, consoles, tablets, and software at the best prices available. I visited a local Game Stop and the First thing that I noticed were the games on the outer display. Which are usually the most recent releases of games that are currently out or are upcoming releases. These displays are a part of Game Stops marketing strategy to lure ongoing consumers to come in and find out more on these latest games as well as the consoles that pertain to these games.

Game Stop- is an chain specialty store that specializes in the sale of video game software, consoles, accessories and electronics.Game Stop uses in store and non store retailing methods.

In Store Retailing- For those who want a more hands on approach and like to see things for themselves and interact with the product of their choice.

Non store Retailing- Game Stop has their own website www.gamestop.com in which they sell all of their products as well as online exclusives*. This is their 

E-Commerce. They also have Mobile Commerce or M-Commerce where consumers are able to shop for their desired goods through the convenience of their phones. 

In Store Experience- The local Game Stop that I visited had a vast and well constructed visual display of products as well as hands on interactive displays of my product the Xbox 360. There I was able to play video game demos as well as watch trailers of upcoming games and movies. This was a great touch to the overall store experience and helps newcomers as well as existing players feel comfortable and welcomed to the gaming world that is the Xbox 360.

Note Online Exclusive*- The online exclusives include offers that are limited to those who shop online. These selected products are only available online and not in stores. Some items include bonuses for those who do not want to visit the stores themselves. 

 

Chapter 6: Consumer Decision Making

Which one should I pick?

Whether or not a product will be purchased is left up to the consumer ultimately. But it is important for companies to study and assess the behavior of consumer wants and needs to further satisfy them with a specific product/service. The Microsoft Xbox 360 uses various techniques to draw in consumers and increase the demand of their product. Some of the techniques used by Microsoft to ease the difficulty of choosing a gaming system amongst the flurry are the following:
The Slogan-The slogan for the Xbox 360 is "jump in". With this slogan comes with it social connotations. When people are wondering if they should purchase an Xbox 360 or not they wonder if their friends have the systems and whether or not they have a certain game that they are interested in. The slogan "Jump In" builds an inner social circle amongst the Xbox 360 online gaming community and this therefore attracts many other gamers to "Jump In" and be apart of this inner circle. This in turn eases consumer decision making and makes the gaming system a necessity in a constantly changing gaming market.

The Original Xbox 360 (2005)

The New Xbox 360 Slim (2010)

The Appearance-The sleek appearance of the Xbox 360 is appealing to hardcore gamers. With the release of the revamped (2010) Xbox 360 an even more sleek and resilient look and feel adds to the Xbox 360's need recognition.

Abraham Maslow's
Hierarchy of Needs

According to Abraham Maslow and the Hierarchy of needs our needs are recognized by the most important and works it's way up to the least important. The Xbox 360 being that it is a material good and is not needed for grave reasons is within the second and third tier (Esteem Needs, Social Needs). In reference to the slogan and the appearance; these two factors make it seem as though the Xbox 360 is more of a need than a want. In an ever changing technologically centered world people find themselves playing catch up with the latest and greatest tech gadgets in order to stay within social circles and norms.

Chapter 5: Developing a Global Vision

Microsoft is known as a very diverse company in terms of outsourcing jobs and global marketing activity.

"At Microsoft we recognize that the U.S. and global diverse markets represent tremendous sources of value in the workplace and marketplace. The growth of diverse populations worldwide and the potential of these segments make them important targets as prospective employees. By the year 2050, 85% of the entrants into the U.S. workforce will be people of color and women. Moreover, developing regions, such as China, Brazil, India, and Africa, make up an increasing share of the world population. They will account for approximately 88% of the global population by 2050, and increase in absolute size from 1.6 billion persons in 1950 to nearly 7.5 billion persons by 2050 Economically, the diverse markets represent a growing source of market consumption and buying power. They are an important customer group for Microsoft. Worldwide, diverse populations account for 44% of World GDP. Within the U.S., diverse populations generate over $9 Trillion dollars in buying power. By increasing the diversity of our workforce we will create a team that effortlessly designs products with the needs of these growing customers in mind".

Source: http://www.microsoft.com/about/diversity/en/us/vision.aspx

But not only does Microsoft outsource jobs to other countries around the world, they also participate in the process of importing and exporting. The Microsoft product the Xbox 360 is created in China due to a venture with Chinese leading manufacturers: Flextronics, Wistron and Celestica.

Materials such as plastic for the outer shell and metals for the internal parts are exported to China where the system is then created and put together then imported to the US.

The Xbox 360 is sold in many countries around the world including 

The United States, Canada, the EMEA region, Japan, United Kingdom, Australia, New Zealand as well as many others. In total the Xbox has sold over 67.2 million units worldwide (As of April 19,2012) and they do not plan to end anytime soon.
Another way that Microsoft's Xbox 360 is involved in global marketing is through their online service Xbox Live. Xbox Live is an online service available on the Xbox 360 that connects players with other players (With Xbox Live) around the world. Players are then able to play with or against other players from around the world as well as exchange messages, videos, information and more. This opens a big social aspect to the Xbox 360 by increasing connections and awareness of the Xbox 360 product and it's services to others around the world.

Chapter 4: The Marketing Environment

Microsoft's product Xbox 360 gaming systems primary target market consisted of two groups:
Teens: Ages 13-16
Generation Y: People born between the years 1979-1994
These two groups made up more than half of the sales volume of the microsoft Xbox 360's system sales as well as the video game software sales.
In order for Microsoft to appeal to a wider audience two new methods were introduced
-A wider variety of games across all platforms for younger players under 13 as well as more variety for the two already dedicated groups (Teens and Generation Y)

Rated E+10 for ages 10 and up

Games Rated (E-M Ages 6 and up)

-Another way that Microsoft has done this is through the Xbox 360 Kinect: The Xbox 360 Kinect is a motion sensor that was introduced by Microsoft in 2010. The sensor allows players to game on a more interactive level and has helped the Xbox 360 boost it's sales by making the system a more appropriate gaming experience across all age demographics by introducing more family oriented gaming designed to immerse players of all ages. Through this Microsoft was able to broaden it's range to a larger target audience.

Chapter 3: Ethics and Social Responsibility

Microsoft Corp. code of ethics were created "to help you make good, informed business decisions and act on them with integrity."

Microsoft's code of ethics is broken down into six values to guide employee conduct: integrity and honesty, passion for customers, partners and technology; being "open and respectful with others and dedicated to making them better"; also a "willingness to take on big challenges and see them through"; as well as being "self-critical, questioning and committed to personal excellence and self-improvement"; and last but not least being "accountable for commitments, results, and quality to customers, shareholders, partners and employees."

Microsoft has also set up a business conduct line in order to enable employees to report any breach of ethics within the company to help prevent any wrongdoing.

Microsoft Corp. was named #2 out of the top 3 most admired companies by US consumers. For it's consistency in higher ethical and moral standards among many other companies around the world.

Through the thorough process of strong ethical grounding Microsoft has helped improve itself not only from the outside, but also within.

Microsoft Corp. with the help of techsoup.org have set up a charity to non for profit organizations and libraries alike and are helping them by supplying free software to help them reach their goals. This is one of the many philanthropic things done by Microsoft to help those in need.