To meet the needs of the segments, Nokia has recently introduced several innovative products. For example, for the Communicator segment, Nokia’s 7650 feature a built-in digital camera, an enhanced user interface, large colour display,
and multimedia messaging (MMS).Nokia’s 6340 phone allows Classic consumers to roam between various global networks; has a new wallet feature that stores the user’s credit and debit card information for quick wireless Internet e-commerce transactions; supports voice-activated dialing, control of the user interface, and three minutes of voice memo recording; and includes a personal information manager (phone book and calendar).
To target the Basic segment, Nokia provides very easy-to-use, low-priced phones that are likely to be used primarily for voice communication. Products designed for the Expression segment are still in the low price range but allow young adults to have fun while communicating with friends. Nokia recently introduced the 5210, a cell phone that offers a youthful and vibrant style with improved durability, for
this group. Features include a removable shell, a built-in stop watch, a thermometer,
downloadable game packs, a personalized logo, and a personal information manager. Nokia also designs phones for the Fashion segment – people who want a phone to “show off.” The Nokia 8260 and 8390 products are in this category. They provide basic communication and other features but are not designed for heavy use. In addition, Nokia offers phones for the Premium segment – people who also want a distinctive and elegant design, but as a fine item to appreciate rather than to show off. The Nokia 8890, a phone with a chrome case and blue back light, was designed for this group. In addition, Nokia recently introduced the all-in-one 5510, which features an MP3 player, an FM radio, a messaging machine with full keyboard, a game platform, and of course, the cell phone.(.
PROMOTION
Marketing theory differentiates between two main kinds of promotional strategy - "push" and "pull". Nokia is a good example of a company that engages in "push" selling, where the major handset manufacturer promotes their products via retailers. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes. This means the retailers can provide cheaper phones to consumers which thus encourages a higher volume of sales.
A "pull" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling phone insurance or mobile phones accessories directly over the Internet). With this type of strategy, consumer promotions and advertising are the most likely promotional tools. Nokia capitalises on its number one position in the mobile phone industry by continuing to target and enter segments of the communications market they believe will experience rapid growth compared to other segments.
Nokia’s advertising campaigns are innovative and diverse. Multiple versions of advertisements for one particular phone are created to target different market segments meaning greater exposure to all demographics of society. For example, in the January issue of British Vogue, there are two different ads for the Nokia 7210. One version of the advertisement features a fashionable blonde model. In the same magazine, just a few pages over, there is an ad for the same phone with a male model. Although both have the same captions and descriptions, both would target different groups of readers. The female version would appeal to young fashion conscious females. The male version of the ad, on the other hand, would appeal more to romantic females who are charmed by the model.
Nokia phones are featured on massive billboards on some of the busiest streets in the major cities all around the world.
Nokia also prints pamphlets for all its latest phones which retailers display in their stores. Company’s best ways to promote its product/service in the target market is
Promotion mix (advertising, sales promotion, personal selling, publicity)
advertising on billboards and television and in magazines, sales promotion, through media (television, radio, internet, newspapers, magazine and publicity.(brassington,1997)(Allen,1995).
PRICING
The reason why Nokia is so successful is due to its value for money and usability compared to other phones. When new mobile phone technology is introduced, Nokia tends to release phones incorporating that technology but at a reduced price compared to what its competitors charge for a phone using that technology in its phones. As technology becomes more widely available and easier to produce, costs are further reduced for Nokia which in turn reduces the cost for consumers to purchase a Nokia phone. New ways of manufacturing phones using a particular technology such as improving manufacturing equipment which hasten the production process also reduces the costs of manufacturing as they are producing a larger quantity of phones is less time which means labour costs for the company are less. Also, many of the features of the latest models of Nokia phones are standard for all phones made around the same time. This means that because Nokia requires more of the parts and technologies needed to manufacture this features in for their phones, they can purchase them at a reduced price as they are buying them in bulk. At the end of the day, these manufacturing savings allow Nokia to sell its phones to retailers at a reduced price who, in turn, can provide cheaper phones to its customers. For example - price of Nokia 7210 is £96. Nokia currently possesses 38% of the market-share in its industry making it the leading mobile phone manufacturer in the world (), (brassington, 1997).
Referencing:-
Books:-
Blythe, J. (2005) third edition Essentials of Marketing
Allen, P. (1997)
Kotler, P. Marketing Essentials
Brassington, F. and Pettitt, S. (1997) Principles of Marketing
Adcock, D. (1993) Marketing: Principles and practice
Keegan, W.j. (1995) fifth edition Global Marketing Management
Websites:-
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