Sales promotion is a short term incentive that motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. One way that Microsoft uses sales promotion is by selling xbox 360 bundles. The bundles can include anything from a T-shirt to a game to a limited edition style Xbox 360. For example when a new game comes out, depending on the popularity of the game, limited edition style Xbox 360s are made using designs that represent the game. The following two images are limited edition consoles. The first one is the Modern Warfare 2 style Xbox and the Grey one is the Halo Reach edition.
Another way that Microsoft uses Sales promotion is by offering discount that are only available for gold subscribers. The Xbox live 1 year membership as of November 1 2010, increased from 50$ to 60$. While being a subscriber you will be able to renew your membership for a low price of 45$ for a 1 year memberhsip.
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