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

    Three variables to monitor while analyzing its competitors - Share of market, share of mind, share of heart. Reaction patterns of competitors - Laidback competitor, Selective competitor (reacts to certain types of attacks), Tiger competitor (reacts to every move), and Stochastic competitor (no predictable behaviour)

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

    Chapter 2 SAMPLING PLAN AND RESPONDENT DETAILS This chapter highlights the followings.... 1. Study methodology & sampling plan 2. Highlights the respondents profile based on the socio economic classifications and Demographics Sampling Plan & Respondent profile Sampling plan The Field work was conducted using random sampling method.

  1. Market Segmentation, Targeting and Contexts

    Council terraces, unemployment, many singles 52 - Council flats, single parents, unemployment High Rise Hardship 53 - Old people in high rise flats 54 - Singles & single parents, high rise estates Inner City Adversity 55 - Multi-ethnic purpose built estates 56 - Multi-ethnic, crowded flats -Source: (http://www.caci.co.uk/acorn/acornmap.asp) -Source: (http://www.caci.co.uk/pdfs/PUK.pdf)

  2. Marketing Segmentation, Targeting & Contexts

    Individual circumstances - the role of the buyer will affect the buyers decisions, such as their training and experience. Just as there is the consumer buying decision making process there is also the organisational buyer decision making process, but there are different factors and more people involved.

  1. The concept of market segmentation , Propose segmentation criteria to be used of two ...

    In marketing mix in 4ps: Product, Price, Place and Promotion Product: in product, Levis Strauss can use the traditional cotton to make jeans, jacket, short and t-shirt they can even use other colour too, they can attain more customer to try buying a new products.

  2. Market Segmentation.

    It also results a rapid growth rate when the firm has a stable position on the market segment. 4) Market segmentation present measurable purchasing power and size. 5) It identifies and presents a segment or segments that exhibit good profit potential.

  1. Differing types of market research techniques.

    This would be useful for companies such as Sky who sell television to households. By looking at public records they will see that the amount of people found in a house is decreasing. This means more households with single people in them who will watch the television.

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

    front, consumers would be able to recognize the product easily just by looking at the picture, and it could make it easier for them to remember the product as well. There is also the Kraft logo, Kraft is one of the famous brands among the food industry, and thus could

  • Over 180,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work

Marked by a teacher

This essay has been marked by one of our great teachers. You can read the full teachers notes when you download the essay.

Peer reviewed

This essay has been reviewed by one of our specialist student essay reviewing squad. Read the full review on the essay page.

Peer reviewed

This essay has been reviewed by one of our specialist student essay reviewing squad. Read the full review under the essay preview on this page.