Microsoft’s Brilliant PR Strategy for Xbox 360: The Benefit of Untapped Social Environments
Microsoft is teaming up with a charity foundation to deliver Xbox 360 kiosks to children’s hospitals across America. Each of these kiosks will come with games, movies and access to a private nationwide network that’ll allow hospitalized children to play or chat with one another.
This is great news because I think it will really make a lot of kids happy, especially when some of them easily get bored or depressed within the dreary hospital environment. I can imagine the much-needed thrill of playing video games with new friends.
I’m not doubting Microsoft’s altruistic motivations at all because I think they really did good. But I also think this is a brilliant marketing strategy for the following reasons:
- It penetrates the target market. While video games are enjoyed by people of all ages, children are an ideal target market because marketers want to plant the seeds of brand recognition from early on: their end goal is to develop long-term consumer loyalty. Kids discharged from hospitals might continue playing the Xbox or recommend it to friends through word-of-mouth.
- It improves the company reputation. When businesses ‘give back’ to the community or practice philanthropy, they inevitably improve their reputation. Consumers generally think better of a company if they know that it performs charity or cares about the less fortunate. This initiative is one way to improve perceptions of Microsoft’s brand.
- It creates beneficial long-term brand associations. By entering into the hospital environment, Microsoft has created an association between therapeutic treatment and video gaming on the Xbox. This may be subtle initially but most parents or family members who visit a hospital may view the pleasure derived from video games as a supplement towards the well-being or happiness of their children.
Video game marketing starts from the initial idea for each specific product. Game designers are sent to trade shows to talk about the story behind the game. Sneaks peaks and demos are given to major game publications and made available online for hardcore early adopters.
But apart of these gimmicks, how do you increase your product exposure? By having a presence in untapped social environments. In other words, by taking the Xbox out of the home and into the hospital. And if you can improve your reputation along the way, why not?
Online marketing is the same. Seek out untapped social environments, create and promote customized products, articles or landing pages of the highest consumer relevance. Work on partnerships with others (e.g. Microsoft and a charity foundation) and focus on improving your overall reputation by conscientiously developing the most favorable brand associations.
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Companies do a lot of good deeds like this that are never noticed so respect for pointing it out. For example, even though Land Rover are known as ‘gaz guzzlers’ they have given away lots of free land rovers and set up projects in africa.
Thought-provoking post as always
PS3 > XBOX
Thats pretty cool tho, haven’t heard of Microsoft doing that before.
This strategy would be easier to do with physical products however.
This is great. I am with you, not only is it great for the kids, but Microsoft found a great space to market themselves as well as the word of mouth advertising that blogs and websites like doshdosh.com give it when you talk about it
A+ for Microsoft.
Oooh now this is genius from MSFT indeed. Plus, it’s very cool that they’re setting up a private network for only inter-hospitals. Very cool stuff, thanks for the find!
Now to figure out a way to take this gem of knowledge and transfer it to my content-less blog.
Bonus points to Microsoft for hooking up the systems to the internet, thats how they deliver ads via the home page of the system. My home system shows ads for cars, new games, and several other somewhat related products[tbh its a small annoyance].
I hope they take full advantage by serving targeted ads, kids tend to get what ever they ask for when they first get out of a long hospital visit.
I think the interlinking to other kids who are also in the hospital is the clincher- I mean it really gives them their own community where they can emathize with other people in truly the same situation. Good Job Microsoft!
very smart indeed. this is very similar to what they do on military bases.
@lipton - no way. xbox LIVE blows doors!!
Not a big fan of Microsoft technologies but having said that, Microsoft usually does a good job with all the charity work…Now nothing really is for free…The press coverage it will get from this (an the blog coverage) is worth the donations.
I guess it’s the nature of business to look for ways to improve your brand, reputation and so on. I still say “good for them”. It’s nice to think that sick kids will benefit from their tactics.
I Dunno…Seems TOO calculated to me. Shouldn’t this kind of thing be more viral?
I an see the backlash against marketing to a captive audience already, even before the “Last Post” scandal even hits.
This is great news. I applaud Microsoft for this act of kindness. I think video games have the same potential to be therapeutic as movies do. The excitement of video games may be particularly relevant when one is in the confines of a hospital. I agree with your article. An act of kindness which brings with it a good business move.
I wonder if this story will show any success at Digg? Probably not your “evil, spammy” marketing coverage, unfortunately but perhaps the original story? It would be well deserved, in any case.
Also, regarding untapped social environments …. just made me think that placing these in bus stops could potentially be HUGE. The gaming equivalent to ice cream shops’ sampler cones etc. Nice untapped environment there while people are bored, waiting for the bus.
It is a great pr strategy since a lot of business charities are done for the sake of publicity (and maybe because of karma as well).
Cancelled Microsoft’s brilliant idea was acquiring Yahoo
I guess this is just another form of corporate social responsibility. Other big corporates donate to poor 3rd world countries, give scholarships etc. Microsoft happens to choose to donate XBox. That’s all.
When companies give back to the community, it almost solidifies their place in the world. Bill Gates is a smart business man and he has to know the great benefit that this bestows on Microsoft.
Good for the kids? Definitely.
Effective marketing? Difficult to say now, but positive in any case.
Brilliant idea? Not that much… Rather basic I’d even add… Makes me think of the artists that don’t have success and are looking for exposure… they do charity concerts…
XBOX is crushed by the Wii and PS3, so it’s not surprising they do such thing…
Next move is: You buy the Xbox, and you are part of a ten million dollars lottery
If they want to sell more consolesm they’d better concentrate on having killer games… Why not an exclusive deal to have Diablo 3 only on Xbox?
I believe this strategy is called the “Blue Ocean Strategy” It’s what Nintendo used to create the Wii (not to mention Apple and the IPod). It basically says it is wise to create new markets yourself, as you will have that “Blue Ocean” to yourself for a period of time. Microsoft didn’t do this with the creation of the 360, deciding instead to fight it out in the red ocean with Sony. Apparently, however, they’re doing it with their marketing now.
This post has been featured in FullTiltBlogging.com’s Daily Blog Summary today. Great post!
Though I would have loved an Xbox 360 to play on during the times I spent in hospital as a child, I also appreciate the frustration when another kid wants to play…you’ve frustrated a generation microsoft!
Hello Maki - first time commenting on here. Love the blog!
This is a perfect example of how making a win-win situation always works. This strategy is proven time and time again. I only wish I could make as big contributions as Microsoft, but for now I do what I can
Makki,
Thank you for the props given to a great company that unfairly has a bad image. Microsoft does an amazing amount of charity work, and as a community the employees donate almost 100 million dollars per year which the company matches on top of this kind of effort. For instance, in the aftermath of hurricane katrina, Microsoft engineers volunteered and created software that help lost and separated families find each other. The website was create and available in under 24 hours.
And since there appears to be a sony fanboy base on your blog, I would love to post this link:
http://nexgenwars.com/
That’s a really great idea… and smart, because which parent is going to deny their sick/recently recovered child an Xbox? How are they going to show the kids how to use them? Something like the Xbox Pocket Guide ebooks version?
Hey Maki, while I’d like to point out that Nintendo was well ahead of Microsoft or any other console maker - at least 15 years to be exact, it still makes for excellent PR.
Having been a former patient at the Hospital for SickKids in Toronto, Canada for over a month back in June 1993, I had the joy of playing Super Mario World on the sole and only Super Nintendo they had in the play room. I’m sure that it wasn’t an isolated incident that was exclusive only to that one hospital.
Recently, I’ve visited the “Marnie’s rainbow” playroom at the Hospital for SickKids and it’s pimped out featuring at least a 40″ LCD HDTV and the latest of consoles.
It isn’t a “groundbreaking” since others have done so before, the only difference is that Microsoft offers their XBOX Live service, but a smart move to create longlasting goodwill with the public.
- Will
Will any of this Microsoft “goodwill” come across as transparently to non geeks as to me that Microsoft is capturing the attention of sick children. Their donations of medical equipment or medicines would impress me more. Having said that it does strike me as odd that nobody has done this lately.
I guess that I’m a little less cynical than others when it comes to Microsoft and their philanthropic efforts. I know it’s de rigueur to bash MS, but it’s important to keep in mind how much Bill and Melinda Gates have contributed to charities over the years. More so than one would only to keep up appearances.
Sure, you can’t totally equate the B&M Foundation with MS, but I’m sure that Bill influences such things to a degree. I’m not so naive as to think that this move is totally without benefit to their public appearance, but I’m not so cynical as to think it’s only for that reason.
Its been years that the xbox is out in market, and i always love those gadgets, till date, i can’t even have a chance to play on it.
Great, thought provoking post… PR is all about connecting with your audience at their level… XBox is definitely hitting the mark on this one.
Maria Reyes-McDavis
XBox will definitely ride the wave to their target audience.