In order to generate a Microsoft Tag you must do so from this website: http://tag.microsoft.com/home.aspx. There the aspect of the Tag is explained and how to use it. You put in the information and url you'd like to link to by using their generator (as you would a qr code) then their site has specially made features for tracking the activity of the code called Tag Solution. It features free reporting on the success of each of you Tags.
Using a Microsoft Tag happens for the same reason that one would use a QR code: to link the physical to the digital. It's easy to load up a tag reader on your smartphone and instantly gain access to a further exploration of a company's add campaign. This can easily be used for promotions and advertising purposes. The addition of color to the tag, while increasing the data size the code can hold, also makes the code work better with the product by giving it a more pleasing look. What makes a Microsoft Tag perhaps even more convenient than a qr code is the fact that all your generating and tracking data can be found straight through Microsoft.
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| This is the Microsoft Tag I produced. |
All information was found at these sources:
http://tag.microsoft.com/what-is-tag/home.aspx (Generator found on same site)
http://en.wikipedia.org/wiki/High_Capacity_Color_Barcode

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