Business Report Microsoft Xbox. Marketing concept and strategy

Seminar Paper , 2004 , 12 Pages , Grade: High Distinction

Business economics - Offline Marketing and Online Marketing

By launching the game console Xbox, Microsoft did not only introduce a new
product but stepped into a totally new market where there company did not have any
experience yet. Although they had a huge marketing budget, they focused on
spending it as effective as possible. Therefore Microsoft’s marketing team had to find
out, who their target customers are and with what marketing strategy they could reach
their challenging goal to become leader in the game console market. But has their
way of segmenting the market and choosing a marketing mix for the Xbox really been
successful? The Marketing concept consists of three principles that hold that achieving
organizational objectives require determining needs and wants of targets markets and
delivering the desired satisfactions more effectively and efficiently than competitors
do (Hoffman et al 2003, pp.10-11). Microsoft took advantage of all three principles. Microsoft did put enormous effort
in identifying potential customers’ needs. The research was concentrated on so called
“hardcore gamers” who spend more than 25 hours playing a week. This group was
seen as early adopters as well as opinion-leaders. Of high importance were an
appealing design to young customers and performance like speed of the console and
high quality of audio and graphics. [...]

Table of Contents

• Introduction
• Marketing Concept
  • Microsoft's Application of the Marketing Concept
  • How does Microsoft create Value to the Customers?
• Target Markets
  • Market Segmentation
  • Target Markets of the Major Players
  • Comment on Major Player's Choice
• Marketing Strategy and Marketing Mix
  • Strategy and Positioning
  • Marketing Mix
    • Product
    • Place
    • Promotion
    • Price
  • Evaluation of Microsoft's Marketing Mix
• Conclusion

Objectives and Key Themes

This business report analyzes Microsoft's marketing concept and strategy for the Xbox game console, a new product and market for the company. The report examines how Microsoft targeted consumers, created value, and implemented their marketing mix to achieve their goal of becoming a leader in the game console market.

• The application of the marketing concept in the Xbox's launch.
• The identification and targeting of the key customer segments for the Xbox.
• The development and implementation of a comprehensive marketing strategy for the Xbox.
• The evaluation of Microsoft's marketing mix in achieving their objectives.
• An analysis of the competitive landscape in the gaming industry.

Chapter Summaries

• Introduction: This chapter introduces the Xbox as a new product and market for Microsoft, outlining their ambitious goal to become a leader in the game console market.
• Marketing Concept: This chapter discusses Microsoft's application of the marketing concept, emphasizing their focus on identifying customer needs, creating value, and exceeding competitor performance. It highlights their research on "hardcore gamers" and their investment in product design, speed, graphics, and game selection.
• Target Markets: This chapter explores the concept of market segmentation and how Microsoft targeted "hardcore gamers" with the Xbox, offering a console designed for their needs. It also discusses the target markets of other major players in the computer games industry, including Sony and Nintendo.
• Marketing Strategy and Marketing Mix: This chapter delves into Microsoft's overall marketing strategy and its components: product, place, promotion, and price. The chapter examines how Microsoft positioned the Xbox in the market and discusses the decisions made regarding each aspect of the marketing mix.

Keywords

This report explores the key elements of Microsoft's marketing concept and strategy for the Xbox. The central focus is on understanding how the company targeted "hardcore gamers" through market segmentation and created value through its product design, game selection, and marketing mix. Key themes include competitive analysis, value creation, and market leadership.

• College: Deakin University (Faculty of Business and Law)
• Course: Marketing Management
• Grade: High Distinction
• Authors: Stefan Lacher (Author), Florian Roth (Author), David Schumacher (Author), Florian Keller (Author)
• Publication Year: 2004
• Pages: 12
• Catalog Number: V25484
• ISBN (eBook): 9783638280938
• Language: English
• Tags: Business, Report, Microsoft, Xbox, Marketing, Management