Ch 12 Services and Nonprofit Organization Marketing.

Intangibility

Beats by dr dre products is considered to be an intangible product on the market today, established and produced by by Dr dre in the year 2006. Beats audio brings to consumers what is called premium sound experience straight from the studio.

“People aren’t hearing all the music producers and artist work really hard perfecting their sound but people can’t really hear it with normal headphones. Most headphones can not handle the bass, the details and the dynamics. Bottom line is the music doesn’t move you. With beats people are going to hear what the artist hear and listen to the music the way they should: the way I do” Dr Dre.

Pricing strategy

Beats audio are set at a high price because of the high quality sound, beautiful craftsmanship and are endorsed by celebrities like Lebron James, not only does he endorse the headphones he actually wear them during warm up before the game. The company keeps the price range high in order to support the high quality image for their intended target market.

Service location

Beats flagship store is located in the heart of Soho they offer their consumer a chance at experiencing with live dj and limited edition products. You can also find beats headphones at other electronic stores like best buy, apple, and target just to name a few.

Target market

Beats audio targets people from the age of 13-30 this includes both male and female it doesn’t matter if you are married, single or divorced you can still purchased a beats headphone if you are passionate and love music.

Chapter 11 Developing and Managing Products

Beats by Dr Dre was founded on July 25 2008, rapper and producer Andre “ Dr Dre” jimmy lovine cofound beats headphones. These great pioneers realized that people would buy headphones that finish the music in the way they like. In my eyes Music is never finished; we can chop and screw, add bass, slow it down one hundred times, mash it up with something else it will still be music until you own a pair of beats headphones. These headphones were created for consumers who love music and wants to feel the music the way its being made in the studio. Before the innovation of these headphones they were none like it.

Product life cycle for beats by Dr dre

Introductory stage

Dr dre

·      Real name Andre Romelle Young

·      Producer, rapper & Entrepreneur

·      Co-founder of beats

Jimmy Iovine

·      Entrepreneur

·      Record and film producer

Growth stage

·      Wireless earphones

·      Tangle free and wireless ear buds for your electronic device

·      Released in 2009

·      Benefits are they are smaller than normal size headphone and cost less.

·      Wireless for workouts

Maturity stage

·      Noise canceling headphones made for electronic device

·      Released in 2008

·      These headphones made 309 million dollars

·      Problems: this was their first product so they were testing out the market and had a lot of competition

Decline stage

Beats pill

·      Problem no volume regulation and consistency

·      Too expensive

·      Considered as the problem child for beats “high cost & low sales”

CHAPTER 8 Segmenting and Targeting Market

Segmenting and targeting market

Market segmentation plays a major role in the marketing stratergy of almost all successful business segmentation helps decision makers to more accurately define marketing objectives and better distribute resources 

Demographic segmentation

Beats by dr dre headphones represent the sound attitude and culture of both males and females18-34 year old urban males who just wants to differentiate them. People who are seen wearing these headphones are considered to be fashionable and are very interested in music and the sound quality of the music over the cost.

Positioning

Since Dr Dre have such a high concentrated target market he now finds his product have a niche market which made them positioned themselves as the most “cool” and fashionable headphones on the market today almost a must-have for every young person as well as anyone who loves music.

Product differentiation “Beats vs. Bose wireless headphones”

Beats

Pros

·       Excellent sound

·       Good noise-cancelling capabilities

·       OK battery life

·       Slick design

·       Great microphone

·       Wireless

Cons

·       Very uncomfortable to wear

Bose

Pros

·       Excellent sound

·       Good battery life

·       Descent design (but not as slick as the Beats)

·       Great microphone

·       Very comfortable to wear

·       Wireless

·       Can be linked to multiple devices via Bluetooth

Cons

·       No noise-cancelling capabilities