Transcript of Presentation
Slide 1: Title
Hello. My name is Kimberly Reach and this is my final presentation for Marketing 457 at UMGC.
Slide 2: Agenda
In this presentation, I will be comparing the Bose Noise Cancelling Headphones 700 model being sold online at Bose.com and BestBuy.com. I will discuss the four P’s: product, price, promotion, and place as well as provide recommendations for these competitors and lessons learned from this analysis.
Slide 3: Executive summary
I will be discussing in-depth the target audience for this product, both on the Bose platform and the Best Buy platform. I will also be providing analysis on customer motivations, the marketing mix for each of the four P’s, and the customer experience. My presentation will conclude with my four recommendations. Each of the topics on this slide will be analyzed further during this presentation.
Slide 4: Product from Bose
To begin, the product is the Bose Noise Cancelling Headphones 700. On their website, Bose lists the features that benefits the user. These features include language such as “augmented headphones” (Bose, n.d., Smart Noise) and options such as an exclusive color offered as a bundle. Bose highlights features that differentiate this product from other wireless headphone options, such as the powerful Bose microphone system and the exclusive Bose augmented reality “for new audio experiences” (Bose, n.d., Smart Noise). Bose “Conversation Mode,” which provides adjustable levels of ambient sound, is also explained. This, as well as other customizable features, is done in the Bose app.
Slide 5: Target audience (Bose)
After analyzing the Bose website, the target audience for this product are professional millennials living in a city who enjoy traveling. These customers may or may not already have Bose products, but they are familiar with technology and pay attention to features such as combability with additional technology and easy-to-use apps. These users have an expectation that technology will not complicate their life, but will act as a support. They would rather pay more for technology that meets their needs and lasts then pay less for disappointing technology they have to quickly replace. The target audience may have children. If they do, their children are young. This buyer is aware of the product, has knowledge of the product, and is interested in the product.
Slide 6: Product from Best Buy
Now, the same product – the Bose Noise Cancelling Headphones 700 – is available on BestBuy.com. Upon reviewing the website, the product features are less specific than on the Bose website. For example, the headphones are noise cancelling, have improved sound, and offer touch control for assistants. They are also lightweight, comfortable, and wireless. Best Buy does mention the ambient sound “Conversation Mode,” but does not expand on the features or explain the app. In short, the features that differentiate these noise cancelling headphones from other noise cancelling headphones are not adequately highlighted.
Slide 7: Target audience (Best Buy)
After analyzing the Best Buy website, the target audience is again less specific than on the Bose website. There is less strong marketing centered around the lifestyle of an active millennial, which gives the impression that the target audience is older. Additionally, the features are not highlighted as strongly which makes this product appear more utilitarian than with the Bose target audience. Throughout the overview, there was strong language associating this product with supporting a work environment. Thus, the target audience for the BestBuy.com product is a professional their 40’s or 50’s, middle class, who needs this product for a specific reason. This buyer is aware of the product and either in the second stage of buyer readiness, where they are seeking information on its benefits, or in the third stage of buyer readiness, where they have an interest in the product. This buyer most likely does not have noise cancelling headphones already, but has a need for them and plans on using them often.
Slide 8: Marketing mix (Product)
This slide demonstrates one aspect of the marketing mix for this product: Instagram. Bose’s Instagram page has a strong balance between professional, created content and curated content by influencers and users. In the image on the right, posted on Bose’s Instagram account, a millennial man is sitting at a table working on a computer with a toddler sitting next to him. The caption of this picture says, “For all work from home distractions – furry or not – Bose headphones 700 give you powerful noise cancellation to help turn anywhere into the perfect place to get work done” (Bose, n.d., Bose @bose). This image and caption are powerful and extremely on brand. First, Bose employs the hashtag that is mentioned on the product webpage: #boseheadphones. Second, the caption appeals to the target audience, mentioning either young children or pets. Third, the caption educates customers on product features, and, finally, reposting an actual customer using the product functions as positive word of mouth. In contrast, Best Buy’s Instagram page, on the right, features all professionally created content. The individuals in the images are employees and there is almost no content focusing on one specific product. This type of content educates customer’s on Best Buy’s core values as an organization, but it should be important for Best Buy to consider the desired content from their target audience. Without reviewing the analytics and only casually reviewing posts, it appears that Bose is receiving almost 5,000 more engagements per post on this platform than Best Buy. This platform appears to be an opportunity for Bose and Best Buy to engage with their target audiences in a meaningful way, but it appears Best Buy is not utilizing the capabilities and reach of Instagram.
Slide 9: Value proposition
One way that Best Buy is connecting with their customer’s is with their value proposition. Prominently featured next to the “Add to cart” button is a graphic featuring two smiling people with the words, “We’re here to help” over them. There is a button to click that opens a chat box. Customers see this messaging all over the Best Buy website and the chat options are visible from any location on the webpage. From the customer’s perspective, it truly feels as though Best Buy would like to assist with any questions about a product. Bose’s value proposition, “Shop with confidence” is a theme throughout their webpage. The “Shop with confidence” message is placed next to the product and the product page likewise feels as though Bose is equipping each customer with the knowledge they need to make the purchasing decision.
Slide 10: Consumer motivation
Both Bose and Best Buy present the product as a self-actualization purchase. Both webpages use language to suggest that the customer can better engage with the world if they had these headphones. Bose presents two additional consumer motivations, a manifest motive to possess an exclusive product option and a latent motive of appearing sophisticated and trendy (Mothersbaugh, et al., 2016, pp. 361). Best Buy includes utilitarian themes in their consumer motivations for the product, presenting noise cancelling headphones as a need rather than just a want.
Slide 11: Anticipate consumer needs
For the final slide on the first P – that is, product – Bose and Best Buy both do a great job anticipating consumer needs. Both webpages prioritize customer support through chat options and highlight customer reviews, which act as positive word of mouth experiences. Additionally, Bose provides extensive product information in the form of frequently asked questions, and user manuals. This allows the customer to feel as though they not only have support from the company, but they are also equipped with information to make the best purchase for their own unique needs. This creates a positive customer experience.
Slide 12: Value of product
Now we will be discussing the second P – price.
Slide 13: Transaction costs
For this analysis, I made the decision to include the minimum protection plan offered by the organization selling the product. As a consumer, I would include this protection plan on a technology purchase of this size intended for medium to heavy usage. At Bose, the minimum protection plan was a 3-year protection plan for $49.95. At Best Buy, the minimum protection plan was a 2-year protection plan for $99.99. The initial price of the product on both websites was roughly the same. Bose listed the product for $379.95 and Best Buy listed at $379.90. Once calculating the protection plans and tax, the total for the product is $452.70 from Bose and $501.73 from Best Buy. While there is a price difference of $49.03, between the two webpages, there are additional factors to consider as well. Bose’s protection plan covers the product for 3-years, but does not include accident coverage or complete product replacement, whereas Best Buy’s does. Also, Best Buy offers faster shipping or local pick-up within the hour. These features may be more appealing to some buyers than a lower price point.
Slide 14: Pricing approach (sale)
Bose and Best Buy take the same pricing approach: advertising the $20 price drop.
Slide 15: Bose website analysis (price)
Finally, Bose offers a multitude of assurances to the customer to reduce post-purchase dissonance. This includes a 90-day risk free trial as well as free shipping for returns. Customers are reassured with links throughout the purchasing process that their information is secure and the footer of the website includes links to Bose’s privacy policies and terms of use and sale. All of this information is easily accessible and incorporated in the purchasing process.
Slide 16: Best Buy website analysis (price)
Best Buy’s website is far less forthcoming. While the footer includes the links to the privacy policy and terms and conditions, this information is in an extremely small font. Additionally, at no part in the purchasing process does Best Buy share security information nor are they forthcoming with their return policy. To locate their return policy, I Googled “Best Buy return policy” and found the page with the return policy information. I was surprised to see that not only do certain levels of members have different return policies, but also the products are divided by how Best Buy will accept returns. This is further influenced by whether or not consumers have receipts or packing slips. This product comes to a total of $501.73 at Best Buy. Customers would need to feel confident that they have return options if they purchase it online and does not meet expectations upon delivery.
Slide 17: Psychographics
The third P focuses on Promotion. The psychographics for the target audiences of this product vary on the two platforms. Bose focuses on the young professionals who enjoy traveling. This is reflected in their messaging, “Head up. Hands free. Ears amazed.” This captures the personality and lifestyle of the target audience. Additionally, the webpage focuses on visuals to provide product information. This is a highly effective way to communicate with the target audience. Best Buy appeals to their target audience of middle-class professionals in their 40s and 50s. This is reflected in their message, “Hear the world around you. On your terms.” They largely communicate product information through customer and expert reviews. However, this is achieved with moderate success because there are many steps to access this information, including scrolling and clicking menus. This requires the customer to realize they want this information and to seek this information.
Slide 18: Bose website analysis (promotion)
When comparing the two webpages against each other, Bose is strong in branding, visuals, and up-selling. One of the most well-done features is how Bose seamless up-sells accessories and compatible products in the product overview. This allows the customer to know that the headphones work with many products, but then also lets them purchase the additional products the headphones are compatible with. Bose treats each of these categories like opportunities to educate the customer on the product, its features, and Bose as a brand. It is remarkably well-done and highly appealing to the target audience.
Slide 19: Best Buy website analysis (promotion)
In contrast, Best Buy’s product webpage is extremely weak in branding, visuals, and chaotic in up-selling. The branding is inconsistent for both Best Buy as a company and Bose as a product. For example, the product overview begins with the sentence: “Turn any space into the perfect place to listen to music, make phone calls, or get work done” (Best Buy, n.d. Bose Noise Cancelling). This statement does not differentiate the product, clearly identify a consumer need, or educate the customer on Best Buy as a brand. There are few visuals on the page and most of the links go to other products, without reference. The biggest problem with this is that the product is generalized on the Best Buy webpage. Because of this, the consumer has no motivation to spend $501.73 on noise cancelling headphones when the Best Buy website features less expensive options.
Slide 20: Bose marketing mix (promotion)
Bose’s marketing mix is as comprehensive and targeted as the messaging and visuals on their webpage. Bose utilizes all platforms to connect with, engage, and educate their target audience. On the product webpage alone, customers are given options to consume and engage with: blog posts, customer reviews, sign-up for email communications, view social platforms, watch promotional views, view and use the product hashtag, and a visual for the product app. It is a robust promotional strategy and engages with their target audience how and when the target audience chooses to engage.
Slide 21: Best Buy marketing mix (promotion)
Best Buy’s marketing mix leans heavily on customer created content, such as uploading images and writing reviews. They also provide product videos, but these are not easily accessible. The product webpage provides an option to sign up for email communications, but links to social media and the Best Buy app are not readily found.
Slide 22: Place
This brings us to our last P – place. Both Bose and Best Buy are national organizations. Bose is the manufacturer of the product, while Best Buy ships product from their warehouse or their retail locations.
Slide 23: Customer service
Both Bose and Best Buy emphasize customer support during the purchasing process. They both feature chat options, customer reviews, and email sign-up. A notable difference between the two webpages is that Bose offers a purchase option throughout the webpage, while Best Buy’s purchase option is only available at the top of the webpage. This requires the consumer to scroll to the top of the page before adding the product to the cart, whereas on the Bose page this can be done at any time.
Slide 24: Marketing mix (place)
Finally, for the modern consumer, the customer experience encompasses social media. While it is important to offer chat support and feedback channels on product webpages, it is equally important to have these feedback channels open on social media. On this slide, Bose’s Facebook page is featured on the left and Best Buy’s is on the right. On the Bose Facebook page, the customer is immediately greeted with a chat box offering a series of prompted questions the customer can choose from. The customer is also presented with a visual of a role model using the product as Bose’s feature photo. This Facebook page shows the consumer that the organization is engaged on the social platform and ready to assist with customer support. On Best Buy’s Facebook page, the feature photo is a collage of products with the Best Buy logo. The chat box that pops up shows a blank screen with missing information, leading the customer to believe the profile has not been properly set-up. In addition, their last post was made almost a month ago. Overall, this gives the customer a feeling that Best Buy is not adept at social media and will not be able to assist with customer support on this platform.
Slide 25: Marketing mix recommendations
With that in mind, I propose the following recommendations. First, I propose that Best Buy engage with their social media channels. Their current social media practices do not appeal to their target audience and are missed opportunities for customer engagement. A challenge for Best Buy will be providing customer support across these platforms, particularly if these channels have not been utilized in the current customer experience. The success of this recommendation will be monitored by the analytics from their platforms. For Bose, I recommend leaning in to the product features on social media channels. Bose masterfully marries visuals with consumer education. Social media provides direct, meaningful, and measurable engagement with target audiences. This will be a way for them to differentiate their products from competitors. Sales following social media features will reflect the success of these campaigns.
Slide 26: Recommendation for manufacturer
My next proposal centers around the issues with Best Buy’s website. The brand identity, messaging, and use of links was weak, ineffective, and distracting for the consumer. I recommend that Bose provide specific language in the form of a promo packet for retailers like Best Buy to use on product webpages. This language will be search engine optimized and appeal to the product’s target audience. This will assist in differentiating the product at retailers while also capturing sales. I foresee challenges with the execution of this plan. For instance, manufacturers cannot be responsible for retailer’s webpages. I also see challenges with retailers properly executing the promo packet and requiring training on best practices. This could be time consuming for manufacturers like Bose. But, overall, I believe this will boost sales with retailers and provide a stronger brand identity on retailer websites.
Slide 27: Recommendation for website
My final recommendation is simple but critical. I propose that all links on websites are operational. As a marketing and events coordinator, I understand the challenges with this tasking. However, when customers are unable to find information, the customer experience is negatively impacted. Ensuring the product webpage is up-to-date with correct links will boost website traffic and establish the manufacturer as the product expert for all customer support questions, further building consumer trust.
Slide 28: Lessons learned
While some of these lessons I felt I understood before this assignment, I feel that I now have a deeper understanding of how they impact consumer decision making. For example, when consumers are shopping online, the product webpage and company social media channels may be the only consumer touchpoints during that purchasing process. This means that consumers are judging their experience based off of the information provided on those pages and how accessible this information is. Additionally, I felt that I understood how company policy impacted consumer decision making, but, in researching Best Buy’s return policy, I saw the direct impact of their return policy on this specific purchasing decision. As a consumer myself, I would feel their return policy was too complicated to make a $500 purchase unless I was absolutely certain this was the product I wished to own. Since I have not seen or held these headphones in person, I would not choose to purchase from Best Buy in this instance. Finally, the differences between the Bose website and the Best Buy website were astounding. I was surprised to see how different the target audiences were between the platforms and how different the messaging was surrounding product features. I feel that I now understand that retailers are not marketing a specific product, but rather are marketing the sale. Best Buy does care if a consumer purchases the Bose Noise Cancelling Headphones 700, only that the consumer purchases from Best Buy. As the manufacturer, Bose is far more invested in the product life cycle of the specific product. It was interesting to see it from that perspective, as this understanding will make a stronger digital marketer.
Slide 29: References
This brings me to the end of my presentation.
Slide 30: Final slide
Thank you for viewing and listening to my final project for Marketing 457 at the University of Maryland Global Campus. If you have any questions, please contact me on my student email address.
References
Best Buy. n.d. “Best Buy return & exchange policy.” Retrieved from https://www.bestbuy.com/site/help-topics/return-exchange-policy/pcmcat260800050014.c?id=pcmcat260800050014
Best Buy. n.d. “Bose Noise Cancelling Headphones 700 Luxe Silver 794297-0300.” Best Buy. Retrieved from https://www.bestbuy.com/site/bose-noise-cancelling-headphones-700-luxe-silver/6332175.p?skuId=6332175
Best Buy. [BestBuy]. n.d. Retrieved from https://twitter.com/BestBuy
Best Buy. n.d. “Best Buy (@bestbuy).” Instagram. Retrieved from https://www.instagram.com/bestbuy/
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Bose. n.d. “Smart Noise Cancelling Headphones 700.” Retrieved from https://www.bose.com/en_us/products/headphones/noise_cancelling_headphones/noise-cancelling-headphones-700.html
Bose. [Bose]. n.d. Retrieved from https://twitter.com/bose
Bose. n.d. “Bose (@bose).” Retrieved from https://www.instagram.com/bose/
Bose. n.d. “Bose.” Facebook. Retrieved from https://www.facebook.com/Bose/
Brands of the World. n.d. “Bose.” Brands of the World. Retrieved from https://www.brandsoftheworld.com/logo/bose-1
Chand, S. 2014. “Top 4 Bases for Segmenting Consumer Market.” Retrieved from https://www.yourarticlelibrary.com/marketing/market-segmentation/top-4-bases-for-segmenting-consumer-market/32293
Mothersbaugh, D.L., Hawking, D.I., Mothersbaugh, L.L., and Tom, G. 2016. Consumer behavior: Building marketing strategy. 13th ed. New York, NY: McGraw Hill Education.
Wikipedia, 2007. English: Logo of Best Buy, US-Based Retail Chain. Retrieved from https://commons.wikimedia.org/wiki/File:Best_Buy_Logo.svg