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  • Essay / Xbox: Marketing Audit - 1531

    Marketing Audit Approach: Microsoft Xbox 360 Company DescriptionMicrosoft is motivated and inspired every day by the way our customers use our software to find creative solutions to business problems, develop revolutionary ideas and stay connected to the best. important to them (Microsoft Corporation, 2006). Microsoft operates in various technological fields (computers, computer programs, IT solutions and gaming systems). This marketing audit will focus on the Microsoft Xbox 360. Currently, Microsoft has three goals for the Xbox 360: 1. Gain a considerable share of the rapidly growing video game market. Microsoft's core PC software business has slowed, making entry into a large and fast-growing market very attractive to the company.2. Microsoft would like to diversify beyond PCs by attracting consumer spending on home entertainment.3. Microsoft's reputation has suffered significantly in recent years due to litigation surrounding its Windows monopoly. The company hopes that the Xbox 360 will combat the perception that it is not innovative and change the public's opinion of the company (http://www.xb360info.com).Porters 5 ForcesTarget AudienceMicrosoft has several targets for the product. Mossberg and Boehert (2005) reported that Microsoft is attempting to attract dedicated male gamers by offering "...the most powerful computer ever sold specifically for gaming." Additionally, Microsoft chose to outline Nintendo's strategy to broaden console appeal to non-traditional demographics. Specifically, Microsoft targets single women and women who live with male gamers by integrating multimedia features. Not only can it play DVDs and CDs, but it can also play media stored on its own hard drive, on another computer's hard drive accessed via a network, or on an iPod when plugged in. Product Marketing Plan An interesting decision that Microsoft made is to offer two versions of Xbox 360 at the time of initial release. The $300 Core System feels more like a traditional console with wired controllers and no hard drive, making it incapable of playing original Xbox games. The high-end $400 version includes a wireless controller, headset, remote control, and connecting cables. The Core System is priced the same as the original Xbox at the time of its initial release, while the $400 version hits a new price point for gaming consoles. In addition, Xbox consoles will have interchangeable faceplates, which will allow you to personalize your console. For example, a single woman may prefer to look at a pink Xbox console, as opposed to the traditional silver one...