Customer value creation: The case of Beats Electronics

Extract

[...] Both Iovine and Dr.Dre had to convince the market that purchasing the headphones was beneficial in the long run as it would make the music listening experience better by providing better audio quality (Helm, 2014). Application and Reasoning Customer value creation was seen as the most appropriate marketing concept as it enabled Beats Electronics to interact directly with the customer by providing a product that would appeal to them. Changing consumer trends are what provided the firm with the chance to bring the product to the market (Helm, 2014). [...]

[...] This paper will begin by discussing the consumer value creation in analyzing Beats Electronics. It will then examine why Beats Electronics used this particular concept and the extent to which it has been forced to accommodate changing trends in consumer trends and the resources that were deployed in marketing this concept and finally the analysis will consider how this concept enabled the firm to enhance on its business performance. Using theory to explain the nature of Customer Value Creation Increasingly firms are placing more emphasis on retaining their customers and often it takes a significant amount of effort, time as well as money in both attracting a new customer. [...]

[...] Customer Value Creation: The Case of Beats Electronics Name: Course: Course Code: Institution: Date: Customer Value Creation: The Case of Beats Electronics Introduction Value creation is one of the core aspects of any firm as it is linked to shareholder value. It is important to care about the manner in which customers place value in the brand. Customer perceptions of value are often unclear which creates a wide opportunity for companies to tap into. This subsequently enables a firm to achieve growth that is sustainable in terms of revenues as well as profits. As Jimmy Iovine and Dr. Dre found creating consumer value was an essential strategy in ensuring that their brand was more successful than their competitors. [...]

[...] The impact of advertising on creating customer value is becoming even more important especially as firms come to the realization that this is what determines success of a product (Helm, 2014). Beats Electronics used one of the most popular forms of advertising by encouraging celebrities from Lebron James to Will.i.am to P Diddy to the United States Olympic basketball team to endorse the headphones. This did not only give the product added exposure but also ensured an added level of reliability and validity that further drew in the customer and subsequently enhanced on the company's growth and success(Helm, 2014). [...]

[...] Conclusion Customer value creation is one of the most essential aspects for many firms as it enables them to cultivate customer loyalty which in turn has positive impacts on the firm's revenue. Beats Electronics integrated this strategy in their efforts to raise brand awareness of their headphones and to enter into a market that had for long been dominated by Apple Incorporated. Beats identified two major problems the core of which was the disintegration of audio quality from the use of plastic ear buds that Apple provided and sought to provide a solution to this by introducing their headphones. [...]