How Beats Electronics beat the odds

Beats Electronics got knocked on the quality of its headphones when they debuted, but thanks to smart marketing, the company now controls about 70% of the upscale-headphone market. The brand has also launched the Beats Music subscription service, co-branded smartphones and portable and wireless speakers, and Apple is reportedly considering a $3.2 billion acquisition of the company. "When we look at marketing for our year ahead, we don't look at what products have the best margin or which ones sell best -- that's detrimental to progress and innovation. We ask, 'What do we think the consumer should learn about?' " said President Luke Wood.

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