Marketing Assignment 1

Topics: Marketing, Hip hop music, Dr. Dre Pages: 6 (1402 words) Published: April 28, 2015


Marketing Assignment 1

Name: Kertna Tharmaraja
Student Number: 742220
Tutorial Day: Wednesday
Tutorial Time: 5:15pm-6:15pm

The positioning of products in an industry is a crucial process in market strategising as favourable positioning in the market over competitors has the potential to influence sales and revenue. Beats Electronics has achieved success in the early stages of the company’s start up, beginning with the release of high-end headphones, known as Beats by Dr. Dre. One of the major marketing concept implemented by Beats Electronics is the positioning of the company’s products. This essay will outline the concept of positioning deployed by Beats Electronics in terms of the company and it’s strategy, the reasons behind the application of positioning and the impact of positioning on business.

A major marketing concept derived from the success and sophistication of Beats Electronics in the market for personal audio electronics is the company’s apprehension of product positioning in the market. Solomon et al. (2014, p. 225) defines positioning as the “[development of] a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition.” This concept encompasses the company’s ability to tailor and manipulate marketing variables to successfully influence the target market of the product’s advantages over competitors and overall benefits (Soloman et al. 2014, p.225). According to Gerrit (2014, p.1), Beats Electronics is a company in the market of high-end audio systems which focuses on the three moieties; personal audio, audio software and online music streaming services. In conjunction with soaring product sales, it can be annotated that Beats Electronics monopolises the audio equipment industry targeted at today’s youth. With regard to positioning, Beats by Dr. Dre was positioned in the the remunerative industry of premium priced headphones targeted the youth. Brown (2014) states that this positioning eliminated the threat of competition from established audio companies because these companies were not contemporary. Beats by Dr. Dre is a bass boosted, tangle-free and fashion forward audio gear that has achieved a cachet that faces no adversary (Fields 2014, p.37). The company identified the influence of celebrities on impressionable youths and the significance of fashion culture; hence, the product was then positioned to accommodate these factors. The majority of promotion strategies utilised the industry connections of the founders of the company, Jimmy Iovine, founder of hip-hop label Interscope Records, and Dr. Dre, hip-hop icon (Brown 2014). The headphones were featured across Interscope Record’s music video roster and worn by Dr. Dre’s contacts in the sporting and music industry to successfully position the headphones as a product used to “…hear what the artists hear…”(Brett 2012).

Beats Electronics is a young, new company not renown for it’s products, however for the marketing strategy the company has executed to propel sales and sustain customer loyalty. It is maintained by Fields (2014, p.10) that Beats Electronics heavily implemented the notion of positioning of companies or products with artists and hip-hop combined because it incorporates cultural and societal norms whilst affixing non-correlated communities around the world. Fields also interjects that individuals who identify with hip-hop music adopt brands affiliated or placed in music videos or lyrics of their favourite artists. For instance, Beats headphones were advertised by product placement in music videos and celebrity endorsed commercials instead of traditionally advertised because platforms such as Youtube and MTV are avidly frequented by the youth (Fields 2014, p.12). Research done by Time Magazine (2014) ranked Beats by Dr. Dre 17th on a list of 18 headphones brands and was heavily criticised by Kleinman...

References: Brown, S (2014), The controversial story of beats headphones and how things got to this point, Digital Afro, (URL: http://www.digitalafro.com/the-controversial-story-of-beats-headphones-and-how-things-got-to-this-point/) [Accessed: 18 March 2015].
Campbell, M (2014), Apple buys Beats Electronics for $3 billion, Iovine and Dr. Dre to join company, AppleInsider, (URL: http://appleinsider.com/articles/14/05/28/apple-buys-beats-electronics-for-3-billion-iovine-and-young-to-join-company) [Accessed : 18 March 2015].
Chitty, B., Hughes, A., Marshall, G.W., Solomon, M.R. and Stuart, E.W., (2014), ‘Marketing: real people, real choices’, Pearson, New South Wales.
Fields, Brandi R. (2014), Selling the beat: hip-hop culture and product branding among young adults, Research Papers. Paper 517, (URL: http://opensiuc.lib.siu.edu/gs_rp/517) [Accessed: 18 March 2015].
Gerrits, A (2014), Circumstances for redesign of the Studio Headphone for Beats by Dr. Dre, Industrial design engineering, (URL: http://abelgerrits.nl/wordpress/wp-content/uploads/2014/08/Article_Abel_Gerrits_s1013653.pdf) [Accessed: 18 March 2015].
Helm, B. (2014), What ubiquity looks like, Inc. Magazine, p.65.
Kleinman, K (2014), Face the music: Beats by Dr. Dre headphones are ‘extraordinarily bad’, Huffington Post, (URL: http://www.huffingtonpost.com/2014/05/09/beats-headphones-reviews_n_5294628.html) [Accessed: 18 March 2015].
Lidell, D. (2015), Beats by Dr. Dre isn’t great design just great marketing, Fast Company, (URL: http://www.fastcodesign.com/3042776/beats-by-dre-isnt-great-design-just-great-marketing) [Accessed: 18 March 2015]
Phillips T. (2014), 5 Beats by Dr. Dre marketing strategies for entrepreneurs, Naijapreneur, (URL: http://www.naijapreneur.com/beats-by-dr-dre-marketing-strategies/) [Accessed: 18 March 2015].
Taylor, B (2014), 18 headphone brands ranked from worst to first, Time, (URL: http://time.com/74886/best-headphones/) [Accessed: 18 March 2015].
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