Concepts and Processes of Marketing Segmentation, Targeting and Positioning - Essay Example

Introduction Marketing can be referred as a management procedure through which goods and services are promoted so as to ensure that customer requirements are met, and an organisation maximises its profits. This process includes the harmonization of four elements referred to as the 4P’s of marketing that could also be used to market Nokia phones around the world. The first P represents the selection and development of the product that is supposed to be marketed. Products vary from different places depending on the demand of various geographical areas and various people selection of goods and services. The second marketing P in marketing represents the determination of a price for the product manufactured. Pricing of a product depends on various variables before the product is taken to the market. In marketing people try to maximize profits which makes it very important for prices to be determined before the products are taken to various markets in the different geographical areas. The prices can also be different depending on the demand of the product being marketed and their utility. The place or the destination of the product is the third P of marketing. Marketers have to monitor and evaluate the places where the products will be more appropriate and which segmentation will ensure that their marketing strategies will be useful and worthwhile. The last P of marketing explains the promotion strategies of the product. Promotion depends on various products and the marketers expectations of the same. Some products maybe more promoted than others because human beings have a unique taste of products thus promoting a variety of products increases the chances of the products selling of faster than those that are not promoted (Sengupta, 2005). The Marketing Process The marketing processes vary from one different nation around the world to the different types of products being marketed in the same. Marketing over the years has improved from being a door to door operation to something that has expanded to internet activities occurring on a 24 hour basis. Today Nokia mobile phones are being marketed in every corner making very easy for clients to learn about the product its services and other features that make it superior to other types of phones (McDonald, 2008). Various companies including Nokia mobile phone manufactures have decided to go digital with their marketing strategy with their main aim being to maximize their sells of the products as well as be able to maintain their customers loyalty. Marketing is about giving knowledge to the world about a company’s product, like why the Nokia products are better than other phone producers, why the clients should decided on settling on Nokia product and stick with it, the benefits of the Nokia products especially the phones on the short term basis as well as the long term and where the product best fits to be used. Marketing does not necessary reflect the product profit margin, but how well the product can be identified by various people around the world and the impacts it gives to various communities. Marketing is about selling the brand to as many people possible, giving details on any changes if about the product, updating customers on prices and the nearest stores they can access the products (McDonald, 2008). Marketing is about promoting a product to gain customers trust and liking to other manufacturer’s products that produce the same kind products. The more resources a company uses to market its product the better chances the company may be able to sell their product to a larger segmentation. Market Orientation and a Brief Description of Different Orientations That Could Be Adopted Marketing orientation can be defined as companies, organizations or firms reacting to the customers’ demands and the next products they produce will be to fit majority of the customer’s specifications. The decision for market orientation is based on the customers feedback and the companies concentrates more on the customer’s request to what they want other than what the manufacturers think is suitable for the same. Most successful companies have been able to maintain the customers because of adopting the marketing orientation. The reason behind such success is because clients of various products have become more conversant and require diversity and better quality of various products. For better and more successful competition, businesses need to be more perceptive to their clients’ needs, or they be at a risk of losing most of their sells to their competition (McDonald, 2008). Example, mobile phones have transformed from being a business accessory to becoming a consumer brand entry. The brand depends on technological changes that take place on a daily basis, which makes it important for business to create their products with the purpose of want rather need. Different Types of Orientation That Could Be Used In Marketing There are various marketing orientations that could be used to ensure that Nokia phones do well against other phone companies around the world. Though the marketing orientations are shifting from time to time there are those that have been useful for ages and will be resourceful for Nokia Company. Production orientation is the oldest type of orientation ever used by various businesses (Sahaf, 1994). This used the assumption that will prefer easily available low cost goods to those goods that were scarce and when available they were at high prices. The main purpose for this orientation was to improve on the production efficiency other than the quality of the product. Nokia can use this orientation to ensure that their customers will always be able to get their product anytime they request. They flood the markets with all kinds of phones and customers will choose which phones meet their needs or the amount of money they have. Product orientation assumes that customers prefer performance, quality and innovative features in a particular product leading to them buying the product. If Nokia phone manufacturers decide to settle on this orientation their priority will be to continually improve the factors of production. Their aim should be to ensure that the superior features that the Nokia phones have will defiantly make the customers go to their door steps. Selling orientation works on the assumption that clients are not buying enough products unless the sellers are selling the same. This makes the marketers to be aggressive while promoting the Nokia phones which will eventually enable them sell the phones to wider markets. Marketers are required to sell more Nokia phones to more people and the more profits gained they will be used to improve the functionality of the Nokia phones. Making sellers for the Nokia phones is what should count other than producing as per the market count (Hart, 2003). Market orientation should focus on why the customers may need the Nokia phones and what they should do to ensure the customers comfort with the same. This orientation of the Nokia phone should study what the customers want and be able to produce Nokia phones that best suits the customer’s request, which will eventually provide more value to the business value. Nokia marketers should be reactive and act upon the needs of their customers or proactive where they act according to the feedback of their customers’ requests (Hart, 2003). It would be advantageous to use both proactive and reactive in marketing Nokia phones and other product as both results to maximum innovations. Holistic orientation gives details on the management approach on ensuring that all market segmentation are catered for and that the Nokia phones and products are well promoted around the world. The process looks at marketing as a whole process that stars with reaching out for the customers while ensuring that the business still meets the main objectives. Explanation of the Costs and Benefits to Your Chosen Organisation of Adopting a Marketing Approach Supported By Evidence Adapting a marketing approach by Nokia will ensure that it remains competitive in the vibrant mobile phone industry. Nokia aims at producing different brands and distributing them all over the world with the aim of increasing the company’s sales (Nokia, 2012). With the competition from different companies such as Samsung, Motorola and other mobile phone companies, Nokia must keep ahead by implementing a successful marketing strategy that will see it benefit from increased sales and a greater market share. Adopting a marketing approach helps the company in knowing the needs of its customers through market research and tailoring their products towards meeting these requirements (Sengupta, 2005). Through market research, the company has grown to be one of the most popular mobile communication companies in the world as it has been able to satisfy their customers through new products and different brands that meet the needs of different consumers. Market approach is a method of determining the appraisal value of merchandise based on the selling price of similar products from different manufacturers. The approach is an evaluation process that can be used to calculate the price value of a product as well as the business ownership interest over the years to security of tangible assets. Marketing Audit of Macro and Micro Environment for Nokia Nokia is a market oriented company and thus it will tailor its products towards customer satisfaction by taking advantage of the emerging opportunities and aim at minimizing threats that may hinder growth of the company (Nokia, 2012). The marketing environment will consist of forces that determine a firm's capacity to meet the needs of its customers and these forces are classified into micro and macro environment. The micro environment of Nokia are its suppliers, intermediaries and customers competitors and the company ensure that it takes care of the welfare of all the three to ensure the company is effectively run. The micro environment will include political, economic, social, legal, technological and environmental factors also referred to as PESTEL. Nokia ensures that all these forces are taken care of by ensuring that its practices adhere to the requirements of all the environments, and this plays a pivotal role in ensuring the company grows. For example, the company ensures that it follows the political and legal issues in the country it operates so as to ensure there are no clashes with the law. Understanding of Segmentation for Nokia Market segmentation entails identifying key groups in the market that share the same characteristics from where the company concerned develops advertising campaigns for each segment, develop products for each segment so as to satisfy their needs. Segmentation allows the firm to target a specific group, and this allows the company to focus on specific customers. According to Nokia annual reports, the company has three main segments; Devices and Services, dealing with mobile phones and related services, for example, software applications. This segment will deal with phone designs and their manufacture as well as sales and marketing of these products. The second segment is the NAVTEQ geographical systems, which deals with providing digital map information and the associated services such as mobile phone and car GPS systems (Nokia, 2012). The third segment is the Nokia Siemens Network dealing with provision of communications equipment which makes communication with mobile phones possible. the company also participates in geographical, demographical, psychographic and behavioral; segmentation to ensure that it provides different and right products to the target population and this plays a crucial role in increasing the company’s profits and building the brand name. An Evaluation of the Costs and Benefits Together With Recommendations Researching and offering products that customers need has helped Nokia increase its sales as it is able to meet various needs of customers. Nokia chooses to record all their sells annually and compare them with previous years so as to analyse its improvement and come up with new ways of making it better than the competition. The company also engages in market research so as to know the needs of customers and tailor products to meet these needs. The company has been able to create a customer perception of a superior brand, and this is based on quality products value for their purchases and reliability of the products (Nokia, 2012). The different makes of mobile phones available have also given consumers a variety to choose from and this has given the company loyal customers as they are assured of superior quality of products for their money. Using the marketing approach is beneficial to the Nokia manufacturers as they have gained more customers over the years and their profits have increased. Costs used to adapt various marketing strategies have been catered for by the proceeds from the proceeds obtained from increased sales the company has gained through marketing their products. In order for Nokia to ensure that they remain competitive in the vibrant market, the company need to ensure that they improve technology used to make their products such as joining in the tablet market so that they can attract new customers and compete satisfactorily in the global market. The company could also invest in innovations so that they develop new products as the mobile phone industry is changing, and more companies are coming up and existing ones such as Samsung are producing superior products with unique features that have made the company develop. A new marketing strategy that could improve the sales of the Nokia phones and products will be setting up various stores around the world as well as ensuring that the online selling of the products is accessible at a 24 hour basis. Setting up as many stores possible for Nokia products around the world will ensure that its market is wide enough and that customers can be able to access different products from available stores. Creating new markets in new grounds increases the chances of success to other existing stores as more profits will be acquired from the new business ventures. Adverts and stores that allow customers to interact with phones will increase the knowledge of the product among various people, which eventually may lead to profit maximization of the Nokia products. Propose a New Market Positioning For One of the Organisations Existing Products or Services and Recommend a Targeting Strategy Marketing positioning is manipulating a brand so as to create a better perception to customers and the rest of the world. When a product is well positioned there ere better chances of increasing its sells as well as maintains the current customers because it will determine how customers perceive the product (Sengupta, 2005). The smart phone market is vibrant nowadays with many consumers streaming in shops to buy Smartphone from companies such as Apple and Samsung. Nokia manufacturers need to redesign its Smartphone the WinPhone 7 by adding to it a fantastic hardware design with a high power camera and more colours so that it can stand out and be different from those of other companies. Developing bright colours for their Smartphone would be ideal for the younger generation and this will help the company in targeting this population as it is the one that is demanding Smartphone in the market. This positioning of the Nokia Smartphone, WinPhone 7, will ensure that marketing strategies of the product is easier and more reliable as it will target the young generation through meeting their needs. 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