Ch.7 Business Marketing

Although Beats by Dr.Dre is mainly a consumer product, it is also a business product.
Beats headphones are mainly consumer products because they are purchased for personal consumption. There are not many businesses which required the purchase of headphones, there are for  any person listening to music...unless you are a producer, artist, or even a DJ. And that's when Beats headphones becomes a business product, for example producers need quality headphones to listen to music they are creating, and will later be selling. Beats makes headphones that are specifically for people like these, they are called Pro High Performance Professional Headphones. They constantly promote their headphones as being so good that even musical professionals use it. They are always promoting by posting picture on Facebook of DJs who are working while using the headphones.
They also do business through re sellers like retail stores.... for example Best Buy, where all the products are available. Although Beats has open their first store, they will obviously continue to use re-sellers. They also authorized many only websites like Amazon, to sell their product.
Most recently they have partnered with the  HTC, and created a cell phone called HTC Rezound, thats uses The Beats Audio™  digital signal processing mode that delivers thundering bass, soaring mid-range and crisp highs.


(below~ DJ Diplo & Beats By Dr.Dre headphones)

CH.8 Segmenting and Targeting Markets

Beats Electronics' basis for market segmentation is the use of demographic information. They have a Beats Electronics' basis for market segmentation is the use of demographic information. They have a concentrated targeting strategy by selecting age as their niche market.


They target the age groups of Tweens and Generation Y. Generation Y is all about whats new, trendy and value brand names. Tweens who don't have any income, still spend millions of dollars through allowances , earnings, and gifts. They are technology savvy and want the latest. The main criteria is that they want to be like Generation Y.
Thus Beat by Dr.Dre targets these two age groups the same way, creating a marketing mix that appeals to both, understanding the needs and motives of the segment members.


Recently, they have use geographic segmentation for the selection of the their first retail store. The Beats Store  was strategically placed in NYC, the most populated city in the United States. NYC is prominent for music,arts and fashion, all the characteristics Beats by Dr.Dre represent.

CH.11 Developing And Managing Products

New Product: a product new to the world, the market, the producer, the seller, or some combination of these.

New product strategy: a plan that links the new product development process with the objectives of the marketing department, the business unit and the corporation.

Beats Electronics introduces new products that are new to their market. It consist of adding new artist series headphones,over the ear and in ear headphones.
For Example, for the artist series line, they add new collaborations of the Beats headphones with  heroic figures of music, fashion and sports. Their latest addition was a collaboration with Lady Gaga, to make the heartbeats High Performance In Ear headphones:

"An icon of music and fashion, Lady Gaga scored three #1 hits on her debut album. Visually,Heartbeats are designed down to the last detail by Lady Gaga. Working closely with Dr. Dre and Monster, they reflect her commitment to amazing "

Their latest new product strategy was the introducing the new limited edition colors. Compare to their normal use of the colors red, black and white...this is a new product.


It was also announced that there will be new wireless headphones. Wireless headphones is not a product that is new to the world, but a new product for Beats consumers.

Ch.16 Integrated Marketing Communication

Beats Electronics promotional strategy use a promotional mix  that consist of advertising, sales promotion and some sales promotion.


Beats ~Promotional Mix:

Advertising:
-Commercials/YouTube
-Interactive kiosk/ p-o-p displays


Public Relations:
-Official Website
-Press Releases
-Facebook
-Twitter



Sales Promotion:
-p-o-p displays
-discounted product at authorized retailer stores/websites


( CH 17 Advertising and PR-http://monstercable2011.blogspot.com/2011/10/ch17-advertising-and-public-relations.html)
( CH 18 Sales Promotion ---http://monstercable2011.blogspot.com/2011/10/ch18-sales-promotion-personal-selling.html )

Interpersonal or Mass Communication?

Beats Electronics had mainly been using mass communication, but with the opening of their first retail store, they will now also be using interpersonal communication.

Beats Store~http://monstercable2011.blogspot.com/2011/11/beats-store.html

Web 2.0 Marketing Communication:


Their key communication element is through the Internet. Beat Electronics main tool of engaging with the consumer/PR is through Facebook and Twitter, which are now the biggest social networks.
So far they have 834,717 people who 'Like' their Facebook page and are constantly updated with the latest news on Beats products and are able to comment and voice their opinions/concerns/ratings. There is also constant updates on their Twitter page, and consumer questions answered daily.

Facebook:http://www.facebook.com/beatsbydre
Twitter:http://twitter.com/#!/beatsbydre

The Beats Store

Beats by Dr.Dre is opening their first store! It opened today November 2 at 12pm in NYC SOHO. 

 At today's grand opening their will be a custom Beats cake. The first few people who purchase Beats headphones will be receiving VIP access to a private party tonight.

CH.10 Product Concepts

Type of Consumer Product:
Beats headphones can be considered as a shopping product-a product that requires comparison shopping because its usually more expensive than a convenience product and its found in fewer stores. 
Their product mix-all products it sells- consist of more than one product line.
A product line is a group of closely relater product items.
Beats has product lines of:
-Over Ear headphones
-In Ear headphones
-Artist Series
-New variety of colors --(Studio headphones)
Adding the new colors can be seen as product line extension-adding additional products to an existing product line in a n order to compete more broadly in the industry.


Branding:
Beats success is mainly because of their branding.
Beats by Dr.Dre has become a brand name through the creator Dr.Dre, who is a world known producer/artist/rapper. The brand mark used is a lower case B, this is easily recognized as the Dr.Dre brand name when people see the mark.
Although Beats Electronic has their trade mark over the product, their is also another brand mark on their products and that is of the Monster Cable Company. Beats Electronics are only a limited liability company and their main partnership is with the Monster Cable Company, so they are co branding.

Packaging:
"come in a beautifully designed carrying case with  anti-microbial cleaning cloths, a special Monster headphone cable, a mini-stereo to ¼-inch stereo cable adapter, as well as Monster’s iSonitalk, a microphone/headphone adapter for iPhones."

Warranty:
As long as your headphones were purchased from an authorized Monster Cable retailer and can provide a copy of the receipt, the warranty is valid from the original purchase date. The receipt validates the manufacturer's warranty, which covers any possible manufacturer defects. It does not cover abuse, lost or stolen product(s).