Bose Corp.: Better Sound through Research or Better Sales through
Marketing?
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Case Details:
Case Code : MKTG161
Case Length : 16 Pages
Period : 1964-2006
Pub Date : 2007
Teaching Note :Not Available Organization : Bose Corp.
Industry : Electricals and Electronics
Countries : USA
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Excerpts
Marketing Sound: The Bose Way
An astute and consistent marketing strategy played a major role in Bose's
growth. There were several facets to the company's marketing strategy. To begin
with, the strategy's primary focus was on the product. Bose ensured that all its
products were simple and user-friendly.
"At Bose Corporation, our product
strategy is to offer not only superior sound, but to develop products that are
small, elegant looking and easy to use. As part of that strategy, we rely on
human factors - engineers to assess user needs, design user interfaces, and
evaluate the usability of our products," said David Aurelio, Interface design
group, Bose...
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Criticism
On the other hand, Bose had more than its share of critics, some of whom
lost no opportunity to run down the brand. Most of the criticisms against
Bose centered around its high prices, poor sound quality, low quality
components, and alleged marketing gimmickry. The most strident criticisms
were about the company's pricing. At a time when the prices of most home
electronics products were falling steeply, Bose charged a premium for its
products. However, this premium pricing meant that customers demanded more
from Bose products...
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Outlook
Bose Corp. was one of the most successful home audio brands in the US.
According to Dr. Bose, the secret of his company's success lay in the
fact that Bose products were able to recreate the feel of live music.
And, live music always had an emotional impact on the listeners and that
was why customers strongly recommended Bose products to their friends.
He said, "Most of our business comes from word of mouth. The thing about
live music is that the composer knew what he intended…When you do get as
close as possible (to live music), you begin to touch the emotions of
the person like the composer had intended."... |
Exhibits
Exhibit I: Dr. Amar Bose: The Person
Exhibit II: The Bose Wordmark and Caption
Exhibit III: Things Consumers Most Want to Change(Based on a survey of CE
consumers in the US)
Exhibit IV: Direct Response Advertising
Exhibit V: Dollars Spent on Print Ads by Bose (in the US)
Exhibit VI: A Bose Print Ad
Exhibit VII: A Comparison of Bose Products with some other High-End Products
Exhibit VIII: Some Expensive Consumer Electronics Products
Exhibit IX: Forrester Technology Brand Scorecard
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