Introduction
Marketing is defined as a management process that is responsible for the anticipation, identification and the satisfaction of the customer requirements profitably.
Marketing can also be understood as an organizational function and combined set of processes that are aimed at creating, communicating and delivering value to customers as well as the managing of customer relations in such a manner that will benefit the organization and the stakeholders. This essay will analyse the marketing concept of Nokia mobile phone Company in the UK.
Product Brand: Macro and Competitive Environments
Brand analysis
Nokia is considered to be an umbrella brand with a lot of products under it. It is considered to be a predominantly 2G manufacturer. Nokia is divesting its businesses and it needs to add value to its current products as well to shift to smart phone category to tap into the growing market. Nokia company ha various brands.
Macro elements are the uncontrollable variables. This involves the understanding of the new markets while at the same time monitoring the existing markets. In analyzing the macro environment, it is imperative that we place into consideration various environmental forces that have an impact on the Nokia marketing in the UK.
It has been established that Nokia has a strong market base in United Kingdom, and it is largely due to their product base, quality of the products and the powerful brand image. Nokia has the best brand value. Macro environment involves those factors that are beyond the direct control of the Nokia business but have an impact on the success of the business though minimal.
A change in the currency market can have an impact on the sales of the products as it was witnessed in 2007 when the dollar rose by 2 dollars to the pound hence making UK the most expensive mobile market. These macro factors have the capability to alter the business environment of the organization. The macro environment can be analyzed using PESTEL analysis.
Regarding product brand, consumers have maintained personal and permanent relationship with Nokia brand. Nokia has a brand reputation that ensures its market share increases. Nokia pays a lot of attention to their brands and competition in the mobile industry since brand reputation is becoming crucial for the purchasing behaviours of consumers (Forsyth, 2007, p. 71).
Effect of the Industry in General
With the innovations in the technological market, it is obvious that Nokia has several competitors; these include Sony Erikson, Motorola, Samsung, Siemens and Panasonic. With these competitors Nokia must be ahead of others in order to ups its strategies and it has emerged as the number one selling brand in the market.
Mobile technology has provided a platform of the delivery of new products that have been created to complement the existing ones or even to develop a new brand line of business. These advancements can take the shape of optimized website, services delivered through mobile phones and other mobile applications.
The UK mobile sector has drastically been liberated and the rationalization of retails stores, and retail networks has led to a considerable reduction in the number of stores per firm. In the UK, a mobile company has to satisfy the requirements that are established by the scientific and technical knowledge and the requirements of the UK consumer Act (Boone & Kurtz, 2010, p. 124).
PESTEL Analysis
These are the various factors that affect the decisions of the managers of organizations, and they include demographic changes, government policies and changes in taxations. PESTEL analysis concerns the analyzing of various factors, which include technological, social-cultural, economic, environmental, economic, political and legal factors.
Social-cultural
We live in a world of consumption where we only consume products, and the products have served to manifest or act as cultural tools of our materialistic society. These products have both materialistic and utilitarian value and are often sold to reinforce our cultural scene.
It is therefore, imperative to examine the products or the brands that are acceptable or not acceptable to humanity as well as analyze the advertisements that are appropriate and match the products. Changes in the social grounds have a lot of impact on the customers’ demand of the company’s goods and also influence the availability and the willingness of people to work in the company.
In the UK, the population is an aging one, and hence it has increased pension payment by companies because their staffs are living longer. This also concerns on how Nokia will blend with other societal components like social class and culture, lifestyle, demographic and psychological factors that form the society. Nokia produces different phone models into the market to satisfy all the individuals.
Technological
This regards the degree to which the technology is embedded in our society or the technological culture that has the powers to control the technical nature of the products in the market, and it can dictate the extent and the methods of the product communication and the acquisition. The acceptance and acknowledgement of technology in daily life is not just a matter of formal education, but it is also a matter of societal norms.
The change in the needs of the consumers and the preferences of fast technological development has been deemed to have a negative impact on the buying behaviour of the consumer in the Nokia market segment. Nokia has various advantages as compared with its competitors due to their economies of scale and highly innovative and advanced technology. New technologies lead to the creation of new processes and products.
Music, the internet enabled and HD screens are some of the products of advanced technology. Technology has reduced costs, enhanced quality, and it has also facilitated innovation. Technological development has a lot of benefits to the Nokia Company, and it will help provide its products. The success of Nokia products is founded on the constant and consistent innovation of human technology and by exploring various ways of exchanging information Nokia allows its users to get more out of life (Knowledge Base, 2012, p. 1).
Political Factors
These refer to government policies that are implemented like the degree of economic intervention and the extent to which the government wants to subsidize some firms or commodities and also the government’s priorities regarding business support. Political factors have a lot of impact on the health of the nation, workforce education and economic infrastructure. This is critical for Nokia because various governments have different legal and political platforms.
Nokia in UK has abided to the ground rules and regulations that govern the UK market and it has tried to prohibit some actions in order to withstand the demand of international trade. Nokia works with the UK authorities to to gain the competitive advantage of the UK market. The compliance of Nokia to the laws of phone usage and copyright keeps them ahead. Since UK is a deregulated market, Nokia operates free of government intervention.
Economic Factors
These factors include inflation, exchange rate, economic growth and taxation. All these have a lot of impact on the behaviour of firms. High interest rates can, for example, hinder investment because it will cost a lot to acquire a loan. Strong currency makes export business dealings to be harder since it leads to strong increase in price. Inflation has the effect of provoking high employee demands, and it raises costs.
Economy dictates the production and the consumption of goods and services. Concerning Nokia, the economic system is critical since it dictates sales, profits and production. For future planning and financial safety, Nokia should analyse the national economic system of UK. Increase in GDP is an indication that the people will have high disposable income which will make the consumers to be more selective when choosing their phones and price will be a factor here.
Environmental Factors
These include the changes in weather and climate; changes in temperature have a lot of impact on various industries. Consequently, some climate changes have occurred due to global warming, and greater environmental factors have taken place and have developed into a major issue that firms should consider. Most companies are moving towards embracing environmentally friendly goods and processes.
Legal Factors
This concerns the legal environment to which the firms operate in. There have been various legal factors that have influenced business and firms operation in UK. These legal changes include the introduction of age and disability discrimination legislation and an increase in the minimum wage threshold; all these affect the Nokia operations. Legal changes have the effect of affecting a firm’s costs and demand.
Using PESTEL does not inform the managers a lot, and it is upon the managers to think about the factors that are likely to change or affect their business operations or to identify factors for their own environment. In the UK, it is the Confederation of British Industry that serves to represent all British firms in the event of discussion with the government (Lamb & Hair, 2009, p. 56).
Perceptual Map of the Competitive Environment
Perceptual maps indicate the attributes that characterize the consumer decision making which later become focal points when designing the product and making advertising decisions. It also demonstrates the strength of the firm’s brand that makes it score in the mind of consumers. The perceptual market map of Nokia mobile product in the UK appears as demonstrated below:
Marketing Program, Elements Employed
The term, marketing mix is used to describe the set of activities that make up a firm’s marketing programs. Among the various elements of the marketing mix are: place, product, people, process, physical evidence, promotion and price. Marketing mix are the tools that are used to position the product into the target market.
Product
This product decisions begin with the understanding of the product in the market. Product offering is not the only thing but is considered as a total package of benefits that are obtained by customers. The product is analyzed from the perspective of customer value.
This value can be analyzed based on the following aspect of mobile phones: their physical product and shape, brand name, reputation of the company, convenience of operation, convenient availability and financial plans. It is also imperative to answer the following questions with regards to the product:
- Does the product satisfy the intended customers in such a manner that will guarantee profits to the company?
- Does the product provide an opportunity for differentiation from competitors just as the benefits are delivered to consumer and the impact of the product in the market?
It is necessary for the firm to continuously learn about the reactions from the consumers to make suggestions about the repositioning in the market (OECD, 1997, p.12). Summarily, the product deals with the design, features, packaging, variation, brand, quality and quantity. For a product to occupy a distinct place in the market, it should differentiate itself from its competitors.
This can only be achieved by positioning the product in such a manner that the customers can perceive the product differently. Any element of the marketing mix can be used to realize a differentiated positioning. The Nokia mobile phone company sells their products to the entire customers, but their distribution options vary based on the market segment (OECD, 1997, p. 234).
Place
This concerns marketing channels; a marketing channel is understood to be sets of mechanisms or the network with which the firm ventures into the market ranging from the demand generation to the physical delivery of the product.
The distribution of the product to the market can either be direct or indirect; direct distribution does not involve any independent party between the firm and its consumers while indirect distribution involves some third party or the middlemen who might have been contracted to work for the firm (Burnett, 2007, p. 19).
The marketing channels can be actualized through distribution which involves making the product available to the market. Examples of marketing channels are retailer, wholesalers, dealers, agents, franchisees and multiple stores.
Price
This is a monetary value that is attached to a product. Price transmits a message about the value of the product, its status and the perceived quality. Prices can be cost based or demand based.
Process
Process is a critical element of marketing that is applicable in the identification of opportunities, development of strategies and the allocation of resources. The company has established processes that are geared towards handling the complaints of customers and process of identifying the needs of customers and their respective orders. Nokia has a well-planned process that defines how the customers receive their services and check their accounts.
Promotion
These are understood to be activities that seek to expand the aims of the organizations through communication with the aim of eliciting a positive response. Promotions can be physical like offers or visual like advertisement and are only intended to deliver a specific message. It is considered those activities that the company indulges in to further their objectives.
Nokia associates with major mobile providers in the UK like the Orange and T-mobile that have launched their 3G services to enhance their market promotion. They also advertise their new products in the media, i.e. televisions, radio and newspapers. Due to the flourishing football sponsorship business in UK, it is necessary for the Nokia Company to sign sponsorship with major football clubs.
They should also create outdoor advertising like the use of videos and images. Nokia also sends messages, calls and emails prospective customers about its products in the market. Nokia also has adopted door sales strategy that involves visiting customers in their residences or place of work to inform them on new arrivals (Gillespie, 2007, p. 5)
Physical Evidence
Nokia has resorted to write some articles that are aimed at exciting the customers about Nokia prices and service. Nokia also provides after-sale services and support to their customers in order to make them comfortable and develop a better understanding of their products. Nokia has also developed a culture of complying with specific laws regarding their product quality and safety, which are geared towards protecting their consumers.
People
Nokia Company trains their employees to be customer cantered and to enable them to develop good attitudes towards customers. Nokia also has the attitude of recruiting native employees from UK since they know the tastes and the habits of the native customers. Nokia also emphasize training of its dealers to encourage them to serve their customers and clients well (Scribd, 2011, p. 2).
Recommendations
Profitability is the primary objective of various firms, and marketers are well aware that profits are the revenues of the company. Since pricing is one of the conspicuous components of the marketing mix of a company, various businesses may be tempted to apply it in gaining competitive advantage over its competitors.
Nokia, in order to meet price of its competitors, has applied strategies like enhancing the quality of their products, establishing consumer relationships and educating consumers about their products.
For the company to increase its market size and profitability, good marketing strategies and marketing planning are essential. It is imperative that the Nokia Company writes down a perfect marketing plan while examining the business environment. A good marketing plan should contain current and potential marketing points to exploit. The marketing manager should place a lot of focus on the resources of the organization like costs of production, the brand image, employee capability, available technology and financial resources.
Analysis of marketing environment is necessary since they directly affect the organization or might hinder the implementation of the organizations’ marketing plan. This is referred as an environmental scanning, and it serves to identify the market threats and the opportunities that are necessary in the designing of the market strategy.
In the UK markets, the brand or rather the product name is very important in terms of the brand image, and all that accompany it. In the case of Nokia, for example, the brand image begins from the technological design of the phones, and the features that the phone has and also its maintenance costs and the safety standard as well as the way it is presented in advertisement and sales promotions.
To achieve a marketing success, it is necessary for the customer to realize satisfaction, and they should be the company’s number one priority. Effective communication and gathering of information enable a company to develop marketing mentality. It should be mentioned that the primary reason for the existence of a company is the customer.
Marketing also demands that work should be distinct from the other business opportunities and it is considered central to the entire organization. Marketing is a critical aspect of business and if customers find something in their product they do not like then they look for it somewhere else and they may go to the competitors.
The company should also develop a strategy that is unique and consistent with its present circumstance. It is necessary to adopt major marketing principles that are unique to a product of a company.
Building a competitive and sustainable advantage
This means having the advantage and developing the capacity to sustain the advantage. This implies that Nokia should maintain its competitive advantage by producing and establishing quality products and laying stake in a market position that is unique. Nokia should build its own competitive advantages as opposed to imitating their competitors. Marketing managers should develop focus on the skills of the company.
Managers should also identify alternatives; this can be realized by using Ansoffs strategic matrix that exists to match products with the market. Nokia should adopt the following alternatives:
Market penetration: this involves the ability of a firm to increase its share among the clients, and it can be achieved by launching an aggressive advertising and well planned sales promotion.
Product development: Nokia should adopt this strategy of creating new products into the market. Managers should pursue this strategy by following the preferences and tastes of their customers. Managers should have a better feeling of the likes and the dislikes of their customers. Managers should also make use of the existing channels of distribution ((Mobile Beacon, 2011, p. 1).
Diversification: Nokia should endeavour to introduce new products into the market so as to attract new customers. They should introduce, for example, more twin SIM card-phones and 3G enabled phones to tap into the growing demand and to establish a new marketing niche that is dictated by the market trends.
Pricing strategy: this is a fundamental and strategic element, and it is related to the positioning of the product in the market. Pricing affects elements of the product feature, sales promotion and the channel decisions.
An effective pricing strategy can be developed from the following process: developing a marketing strategy, making market mix decisions and calculating of costs. Marketers price their products in a manner that receive fair value since price is the basic parameters by which the customers judge the product, and it also reflects the practices of the organization (Lamb & Hair, 2009, p. 56).
References
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