Xbox Marketing

Topics: Marketing, Video game console, Marketing research Pages: 10 (3085 words) Published: April 13, 2011
Marketing Report on Xbox.



1.IntroductionPg 3

2.Market SegmentationPg 4

3.The Marketing Mix

3.1.ProductPg 4-5

3.2.PricePg 6-7

3.3.PlacePg 7

3.4.PromotionPg 7-9

4.Market ResearchPg 9-10

5.ConclusionPg 10

7.ReferencesPg 11


This report focuses on the way in which Xbox, as a product, should, and does manage its marketing mix in order to meet the needs of its markets segmentations. The marketing mix is classically seen as the four P’s of marketing: product, price, place and promotion (Brassington and Pettitt, 2006). Each P must be looked at individually before being brought together, so Xbox can then respond to each segment accurately, keeping them interested and loyal, which is vital for Xbox due to the highly competitive market that it occupies. These high levels of competition are what make the management of the marketing mix so important. The report also looks at market research and how Xbox should be using it to find the preferences of its customers. Without strong and effective market research any product, including Xbox, can fall behind their competition and drift away from customers needs and expectations.

Xbox was established in 2001 as part of Microsoft and was their first attempt to move into the video game console industry. They claimed better graphics, faster game play and a better all around gaming experience (, 2000). The console market in 2001 was already dominated by Sony’s PS2 and Nintendo’s Gamecube, making it a risky market to try and enter and gain market share in. Xbox’s initial launch was purely focused on one market segment consisting of 7-16 year old males but soon found a need to expand and grow. They have since branched out into many different market segments that were not even considered during their initial launch including the female market, adults and families. Xbox have achieved the move to these segments using different techniques, which will be covered later. Since the launch of the Xbox 360 in 2006 Xbox’s market share has overtaken that of Sony’s PS3 and have kept a close second to Nintendo Wii according to NPD Market Shares for Game Consoles, January 2009 (TG Daily, 2009).

2.Market Segmentation.

Market segmentation is the process of identifying different groups of consumers in a market, that can be targeted with distinct products or marketing methods (Croft, 1997). After identifying these groups Xbox need to adjust their marketing mix accordingly to keep competitive advantage, appeal to each new segment and still keep their original segments interested. Each segment should consist of groups of people with related interests and characteristics, who, can be marketed to in a similar way. Numerous different types of segmentation exist, with the main groups for Xbox to focus on existing within the demographic sections of, Age, Gender, income and family structure. The information on these segments can be easily accessed through public sources, and worked into the marketing mix (Brassington and Pettitt, 2006:192-206). When Xbox are looking to move into a new segment it is important for them to evaluate the segment and decide whether it is worth working towards. There are three main factors to look at when making this decision; segment size, segment growth potential and the companies objectives and resources (kotler and Armstrong,2010). Once these things have been evaluated Xbox can look at their marketing mix and make the necessary changes.

3.The Marketing Mix.


A Product is everything favourable and unfavourable that is received in an exchange. It is a complexity of tangible and intangible attributes, including functional, social and psychological utilities or benefits according to Dib et al.(1997)(cited in Groucutt,2005:168). So for Xbox the console is the tangible form of the product they wish to...
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