Question

A case can be made that sound reproduction has become one of the areas in which technological innovations have made the most profound leaps forward. Leading the way are major competitors such as Sony, Philips, Tivoli Audio, and Bose. Many forms of sound delivery exist, some featuring earphones and headphones, and others through stand-alone speakers.

The Bose Corporation began operations in 1964. Amar G. Bose, a professor of electrical engineering at the Massachusetts Institute of Technology, became frustrated during his attempt to purchase a high-quality stereo system. He believed that the speakers that were available had impressive technical specifications but failed to reproduce the realism of a live performance.

Four years later, the first Bose product reached the market. In a very short time, Bose has delivered a series of innovations in sound.

Currently, the Bose Wave products are at the forefront of quality sound, including the Wave radio, Wave music system, and Acoustic Wave music system. Each is designed to deliver the most realistic sound through a compact, attractive device that will fit in any room in the home or office. The product can be linked with a dock that both plays and recharges an iPod. Another product allows the user to wirelessly play and store music from an internet radio station. Other Bose products include headphones, home theater systems, speakers, and sound systems for various locations, including boats and businesses.

Bose systems are on the high end in terms of price. For example, the most widely purchased Wave music system had a list price of $499.95 in November 2009. To entice buyers, product discounts are routinely offered, including a $100.00 price reduction when the Wave is purchased with the accompanying multi-CD changer. Also, Bose offers one-year, interest-free financing.

The Bose marketing program includes use of traditional media, most notably television, newspaper, and magazine advertising. The company’s website allows buyers to find and purchase all items online. The company employs a limited number of retail stores that feature the Bose line. The primary marketing emphasis remains focused on quality. For example, Fortune rated the Bose QuietComfort headset, which cancels outside noise, as the best-quality option for headphones.

Although a company’s reputation for quality may help to drive sales, outside factors can interfere. The recession that began in 2008 and continued into 2009 led many shoppers to cut back purchases, especially for more expensive luxury items. Bose was not immune to this trend. The company was forced to lay off nearly 1,000 workers, or 10 percent of its labor force, during the decline.

At the same time, Bose forged ahead, seeking to develop new technologies in areas other than sound. As the economy continues to recover, business analysts expect Bose to build on its core products while moving into new areas, furthering the growth of this innovative, energetic organization.

Questions

(1) Explain how the IMC planning process would apply to future marketing efforts for Bose Wave products.

(2)Identify the market segments that the Bose Wave products should continue to maintain.

(3) Should Bose continue to compete based on the high-price/high-quality positioning, or develop programs to reduce prices and entice a wider variety of shoppers?

(4) What should be the primary marketing communications objectives for Bose?

(5) What type of budget should be used for the Bose promotional program?

(6) Which IMC components best match the target market, position, objectives, and budget for Bose products?

Answer 1