• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

market segmentation - nokia

Extracts from this document...

Introduction

MARKET SEGMENTATION - NOKIA - World's 5th most valued brand (Interbrand, 2007) #1 brand in Asia (Synovate 2006 and 2007), and #1 brand in Europe (European Brand Institute, September 2007). (www.nokia.com). Nokia has A Phone for Every Individual." While practically everybody today is a potential mobile phone customer, everybody is simultaneously different in terms of usage, needs, lifestyles, and individual preferences," explains Nokia's Media Relations Manager, Keith Nowak. Understanding those differences requires that Nokia conduct ongoing research among the different consumer groups throughout the world. The approach is reflected in the company's business strategy. Based on its information about consumers, Nokia currently defines and operates with six clusters or segments: "Basic" consumers who need voice connectivity and a durable style; "Expression" consumers who want to customize and personalize features; "Classic" consumers who prefer a traditional appearance and web browser function; "Fashion" consumers who want a very small phone as a fashion item; "Premium" consumers who are interested in all technological and service features; and "Communicator" consumers who want to combine all of their communication devices (e.g., telephone, pager, PDA). (www.highered.mcgraw-hill.com),(kotler,1998). NOKIA'S PRODUCT Nokia performs regular consumer surveys to understand the needs of the user giving them the ability to fulfil the expectations like providing user-friendly, highly functional personalized products and solutions. ...read more.

Middle

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.(www.highered.mcgraw-hill.com),(www.nokia.com). 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. ...read more.

Conclusion

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 (www.nokia.com), (brassington, 1997). Referencing:- Books:- Blythe, J. (2005) third edition Essentials of Marketing Allen, P. (1997) Marketing techniques for analysis and control 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:- http://www.nokia.com/NOKIA_COM_1/About_Nokia/Sidebars_new_concept/Nokia_in_brief/InBriefJuly08.pdf, august10,'2008. http://highered.mcgraw-hill.com/sites/0072410752/student_view0/chapter9/video_cases.html, august10,'2008. http://www.nokia.com/A4126368,august10,'2008. http://www.nokia.com/A4126317,august10,'2008. ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    Small sellers concentrate on reaching the key buying influencers whereas the large sellers go for multilevel in depth selling to reach as many participants as possible. Major Influences The major influences on buying behavior are: Environmental, Organizational, Interpersonal and individual.

  2. Market Segmentation, Targeting and Contexts

    * Consumer behaviour models - These are practical models used by marketers. They typically blend both economic and psychological models. Nobel laureate Herbert Simon sees economic decision making as a vain attempt to be rational. He claims (in 1947 and 1957)

  1. Free essay

    influence of tv ad,s

    No. Duration Morning Afternoon Evening Night Total 1. 2 hours - 3 2 5 10 2. 4 hours - 3 1 2 6 3. 6 hours - - - - - Total - 4 3 7 16 Question regarding the duration of watching TV was asked to the parent (mother or father)

  2. Differing types of market research techniques.

    These objectives are to improve the quality of its healthy food range. Walkers shouldn't define the problem of their hot food too narrowly or they may miss vital clues. In other words if Walkers only focus on improving the Original crisps in their range then they miss that all the other ranges like Doritos need improving as well.

  1. Kraft Tiger Market Analysis - how Kraft Tiger uses market segmentation in Singapore.

    help in increasing product awareness and consumer's confidence towards Kraft Tiger (Kotler et al. 2009, 288). 1.2 Current Pricing Kraft Tiger is engaged in a monopolistic competition market, monopolistic competition is a market situation where many buyers and sellers trade over a range of prices, rather than at a single market price (Kotler et al.

  2. GSM Mobile Study - the mobile phone market in India, and research into phone ...

    Other areas where India is expected to make progress include manufacturing, construction of ships, pharmaceuticals, aviation, biotechnology, tourism, nanotechnology, retailing and telecommunications. Growth rates in these sectors are expected to increase dramatically. Over the years the Indian government has taken an economic approach that has been influenced, in part, by the Socialist movements.

  1. Marketing Segmentation, Targeting & Contexts

    Should this be the case then the business should be careful not to become complacent and allow for other competitors to enter the market easily. Concentration is beneficial to management as it is low in cost, due to there only being one marketing mix to arrange.

  2. New Brand Equity: The Merger of Nokia Siemens Networks

    of customers, and a deep presence in both developed and emerged markets. The merged company would be better suited to compete with both Alcatel and Ericsson in the market for both fixed and mobile telecommunication services. The partnership will be the most effective way to build the scale and broad

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work