Business-to-business markets have a limited number of buyers, which creates a large purchase volume (Clow & Lascu, 2012). Most manufacturers sell directly to the retail stores because it makes the products cheaper and no one in between needs to earn a profit. It then provides consumers with a lower cost which in turn gives the retailer and manufacturer more profits. This is a direct channel of distribution because it does not have to go through any intermediaries before arriving to a retailer (Clow & Lascu, 2012).
Authorized retailers that do business with Microsoft are Best Buy, Staples, Fry’s Electronics, Micro Center, TigerDirect, Nebraska Furniture Mart, and Walmart. A consumer can ...view middle of the document...
(“Licensed Manufacturers,” 2013). All of these manufacturers make different parts for Microsoft’s array of products that resemble the Surface tablet.
The specific manufacturer of the Microsoft Surface is a company called Pegatron. Pegatron is a Taiwanese electronics manufacturing company that serves worldwide as one of the top original design manufacturers (ODM). This company is known for making netbook computers, game consoles, desktop computers, notebooks, handhelds, video cards, etc. The company tries to keep their products diversified, unique, and flexible. Their goal is to help customers with the future (“Who We Are,” 2008).
Two years ago in April, Microsoft Corporation and Pegatron Corporation signed a business agreement providing patent coverage for different Pegatron products. The products include different electronic devices that run off of Androids and Chrome platforms. This agreements added to Microsoft’s other top four Taiwanese ODMs. (“Microsoft and Pegatron,” 2012). Pegatron’s business operations extend globally. Facilities were placed across the globe which include the following locations: Indiana, United States; Ostrava, Czech; Suzhou, Shanghai and Chongqing, China; Tokyo, Japan; Taoyuan, Taiwan; Sao Paulo, Brazil; and Juarez, Mexico. They set up these locations according to strengths of the area and to make sure it would satisfy all their customer’s needs (“Business Operation,” 2013).
This particular product is manufactured in China (Ulanoff, 2012). The logistics of the Surface enhances the supply chain. Pegatron works closely with their partners to ensure the customers expectation are being met. A supply chain consists of the process of developing, producing, marketing, delivering, and servicing a product (Clow & Lascu, 2012). Pegatron intends to fulfill customer’s orders, have well organized material plans, and ensure supplier quality. If they reach these goals then Microsoft can have an on-time delivery of the product to their specific customers (“Supply Chain,” 2013).
Target marketing involves finding out who the product best suits (Clow & Lascu, 2012). Companies use this to find consumers who are interested in the same things and respond well to a certain product. Target marketing can narrow customers down to gender, age, race, location, etc. By doing so, a company can provide a certain group of people by satisfying their unique needs and preferences (Clow & Lascu, 2012).
Microsoft target marketing is mainly college students and people that design things for a living. The company designed the Surface do be used for both work and play. It’s sleek and sophisticated style is fit for a ----life style and style. It also is made for the future to push the technology envelope. It is designed to be productive and constructive for activities such as projects or something as simple as emailing. The Microsoft Surface is basically just an extension of Windows 8. It provides files that can be accessed anywhere, thousands of apps,...