Marketing Products and Services in a Dynamic Environment-Nokia - Report Example

Marketing Products and Services in a Dynamic Environment2-Nokia By: Marketing Products and Services ina Dynamic Environment2-Nokia Introduction The need to satisfy wants is often curtailed by the scarcity of resources, which is further made complicated by the recurrent nature of these wants. When faced with a variety of alternatives, a consumer or client is often bound to make a rational choice of the products or services being offered, usually guided and limited by his budget constraints. He thus goes with a product choice that would tend to optimize his/her utility. In this regard, marketing plays a vital role in informing the consumers about the product and convincing them to buy the product. A well-marketed product will attract more consumers hence more sales to the firm. Therefore, marketing is a strategy that cannot be ignored by any firm that wants to maximize profit. With the sale of the Nokia’s device and service business to Microsoft-a deal worth € 4.5bn where Microsoft would get to use the mobile company’s name in connection with future mobile phones for 10 years-one would easily think that it would be hard for the mobile phone company to re-enter the market for its future products. The deal as it is stipulated, would not allow the mobile phone company to license its Nokia brand to anyone. This is because they might use neither it to sell mobile phones for a 30 months period nor itself from re-entering the device market by production of its own kits, not before the period starting October 2016. Microsoft also bought licenses to use its mobile patents and the right to license them to others for royalties. In addition, it also acquired its mapping patents and data which have been considered much comprehensive and to cover several cities around the world. Arguably under this deal, Microsoft would tentatively accomplish stopping the mobile phone company from dropping windows as it OS or adopting Android or Firefox to its handsets. With the perceived slow market response to its windows 8 OS for PC’s, this would be considered a boost for them as they try to enter the mobile marketing industry. In consideration to all these, the company would in essence have to wait for a period not less than two years to be able to launch its own mobile phone devices together (FERRELL 2014, pg43). This is in addition to the Microsoft-Nokia branded feature phones. A further six months would be required for them to able to license its name to other manufactures, making them more than two outlets selling phones under the Nokia brand, theoretically. For this to happen, they would need to start from scratch to hire new people and developing new products to introduce into the market. This process would take into consideration a lot of business environmental factors and sound marketing research and strategies. A background research would be needed to establish the standards for these products to enable a successful re-entry into the mobile production industry. Nokia, over the past decades, has been very successful and has produced a variety of products and services to its consumers. Its brand has been peculiar over the years and has stood out among its competitors in the industry (MUKERJEE 2008, pg24). Notably, before it’s this acquisition is its entry to the production of windows phones with a lot of viable applications to its users. Should Nokia choose to restart its brand in 2016 and enter the Oman market, there would be several branding approaches that would be considered to make the undertaking successful. This is so especially, if these approaches are taken and developed based on the current Lumia phone devices that contain a lot of features that can be built on successfully. An image of the current Lumia phone device: This windows phone as currently developed by the Nokia mobile phone industry has a lot of inbuilt features, most of which are in line with the consumer’s need including among other things: a) Contain live tiles displaying latest social posts, news and more; these live tiles enable the user to personalize the start screen making it his/her reflection. One can enable real-time viewing of status updates, timeline posts and tweets through these live tiles. b) Enabled with a personal Smartphone assistant, Cortana, which can learn ones interests with time providing useful and proactive recommendations to the user. This helps in keeping one closer to the activities, people and opportunities of high regard to the user’s life. c) It also comes with preinstalled applications usually regarded as important for the users including the Facebook, twitter and the office apps accustomed to most of the windows phones. These plus many more apps are usually stored in the windows phone store. In addition to all these, it has room usually for the installation of other application as desired by the user. d) Contains powerful cameras that enable users to take great photos of great moments. It is enabled with features i.e. action shots and motion focus that enables the users to capture and edit their photos to reveal their best looks. e) Acquainted with voice call clarities, a feature highly considered by most mobile phone users f) Have a relatively longer battery life, music and superior volume level g) Has an easy to use the keyboard and better texting capabilities As noted in the marketing field, fundamental changes in the business external environments always implore fundamental changes in its internal environments (SWAN, K. S., & ZOU, S. 2012, pg 21). With no particular exceptions, industries that experience dynamic external environments situations are often guided by fluctuations in the demands of their products. In addition, these companies experience ever changing consumer behaviors, availability of technology and the access to information about various products and services. These uncertainties have been a huge component in the various firm’s strategies in their endeavor to introduce their products and to market them successfully. In Nokia’s pursuit to enter the market with a new a new mobile phone device, a lot of considerations will be made regarding the branding approach to be given to the product. Most of its product prototype would be based on its earlier version of Lumia phone device. The features of the Lumia device will have to be incorporated in a fashionable way to help match the consumer’s need come the year 2016 (OLDROYD 2006, pg64). Being that Nokia as a brand name already has a huge customer base and has its products spread in various parts of the world, a new product would not need much orientation and marketing for its target market (FERRELL 2014, pg52). With the changing nature of the global markets, the marketing strategy has to take a newer look for its products to sell successfully to its customers. The phones needed at the time would be able to incorporate a wide range of applications and adequate internal storage to enable the running of these applications (MUKERJEE 2008, pg31). The interface would have to be improved to match the requirements of these products and services at the time. The introduction of the new device as its product essentially would undergo the product planning process usually used for new products to be introduced into the market. It involves different stages which would include: Idea Generation: This is normally the systematic and continuous search for new product types to be introduced into the market. It involves finding out the sources for new ideas and their evaluations. These sources usually used to generate from both the internal environments and external environments of the business. Nokia mobile company has its current Lumia as an internal source in enabling them come up with a newer market product. In its pursuit to re-enter the market, it must produce products in line with its previous products in order not to lose their brand customers. Consumers, especially of these services tend to attach particular attributes to the different brands available. Once these attributes have been developed and enshrined in their minds, the service providers should not work on anything to change them as this would make them loose their customers. The company would evaluate itself regarding its resources, financially and their existing human resource (OLDROYD 2006, pg71). The external environments usually considered involve the customers, competitors, their suppliers and distributors. All these factors should be carefully considered in any idea generation in case the company decides it wants to launch itself back into the mobile market with a newer product. Product screening: At this stage of the product planning process, the set of products identified are screened. In coming up with the product ideas, a set of alternatives should be given. After screening is done successfully, all these alternatives are considered, and the less viable ones and those that do not meet the company objectives are eliminated. Nokia mobile phone products have been known to have cameras that produce quality photos, and with clarity when it comes to voice calls. When it comes to screening, these core values and attributes of the company should be carefully considered so that the products passed to the production phase are those that are agreeable with the company policies (BALDEGGER 2012, pg 65). Concept development and testing: After an idea of the product to be introduced into the market is developed and screened, the product image and concept should be developed so that it is tested before a prototype for the product is developed. This phase of the product planning involves procedures used in measuring the consumer enthusiasm regarding the product. It involves finding out the initial reactions of the potential buyers to an image, written a statement or oral presentation of the product in question. This analysis is normally important so that a product that would encounter an outright rejection by the consumers is identified earlier enough before the prototype development phase begins. Marketing strategy development: This stage of the product planning process involves the design of market strategy for introducing this device into the market. It would often consist of the following parts: The initial part usually defines the scope of the market the product would serve, its expected positioning, both the sales and the market share, and the expected profit margins in the initial years of its introduction. In this case, having a predefined market already gives the Nokia Company the target market for its products. Nokia devices are normally unique to its users and with the brand name already a household name; product positioning would be a simplified task. The second part of this phase involves the planned price of the product, its distribution and the marketing resources to be allocated to it for the first year. The third part outlines the planned long-term sales and profits projections, and the market mix strategy for the product. In order to establish a successful market mix strategy for the new product, the mobile phone company needs to verify the right product production. Verification of the right production will help in ensuring that the product isn’t sold at a price that would result into losses for the company, and that it is sold at place that would be convenient to the customers. This would also help in ensuring that the best promotion strategies are applied so that an appropriate awareness of the products’ availability is created. Business analysis: Once a company has decided on the product concept and the subsequent marketing strategy, it evaluates the proposal for its effectiveness. This involves the review of the production costs, sales and profit projection of the product to ensure that it meets the company objectives. If this is satisfied, then the product is taken to the product development stage. Product development: At this phase, the product concept is converted into a physical product that can be sold to the consumers. It involves incorporating the engineering designs necessary for its production, and this stage normally calls for a huge capital injection. Test marketing: This is the phase where the product is introduced into the existing market settings. It offers the marketer a bit of some experience with marketing a product before the product is fully introduced into the market. Test marketing enables the company normally to test the product regarding all its aspects, its positioning in the market, the pricing, advertising, and distribution and budget allocations. Commercialization: After making a final decision to launch the product in the market ; finally, the company moves ahead to proceed with commercialization. Considering the Nokia Company in question, this would not involve a lot of cost incurrence because it would still have the facilities for this production. This process is also usually used for entirely new products. In this case, it would involve advancement of the existing version of the windows phone, adjusting its components and features to come with an entirely different and new phone device under the same Nokia brand name. For a successful branding and promotion of the mobile phone product to be launched by the Nokia Company in the coming two years, and then the company would involve a bit of persuasion and engage of the customers. The marketing theory of the current dynamic environment demands that the customer relationship is maintained. Proper relationship will ensure that there exist a lot of competition and generation of more customers has become a hell of a task (RUGRAFF, E., & HANSEN, M. W. 2011, pg 34) Some of these strategies that would enable the successful launch and in the creation of an effective relationship between the company and the customers would include: Relationship marketing; this marketing theory helps in establishing long-term relations with the customers and focuses its efforts on client acquisition and retention. This helps in increasing the customers of a particular product and an increase in the customer loyalty. If this in inculcated in the policies of the mobile phone company, client retention would be improved and Nokia would emerge as a strong contender in the industry. Customer loyalty; creation of customer loyalty is also beneficial to the company as these loyal customers are more likely to recommend the company products to other customers. Companies should focus more on building their customer databases and lay down plans to reward loyalty to their products. With this customer, retention is increased, and allegiance is created between the company and its clients (SWAN, K. S., & ZOU, S. 2012, pg 44). If the mobile company is to be successful and expand its customer base for its newer products, then such plans have to be put in place so as to attract both its regular and new customers. Client Satisfaction: This normally is difficult to measure often by companies due to the unpredictability of the consumer behavior. Design and production of company products should, therefore, be able to match the customer expectations and needs. To successfully meet the demands and needs of the customers, adequate market research should be conducted to ascertain the product features that would be able to meet the consumer’s expectations. Market segmentation is also key in meeting the expectations of the different segments of the market (RAMESH KUMAR, S. 2009, pg 54) Of the various brand design and possible approaches that could be applied in coming up with the new mobile phone device, due diligence could be accorded to the following product aspects in relation to the increasing client demands and expectations: Minimalism; minimalism especially on the user interface makes the interface easier to digest and appeals to a wide range of customers (NARULA 2006, pg44). i) Provision of laser focus. This helps in putting the focus on a single, straightforward task to do once the user of the product opens a web application instead of the provision of other several equally important options. It has been preferred by most users due to its simplicity. ii) Collapsed content; another way increasing the products usability and preference is by cluttering its interface by hiding non-essential options and probably placing them under one link that expands and collapse on a user’s request. It is more beneficial especially for those pages that have a lot of interface elements for options and settings (WRIGHT 2004, pg77). Hiding such information makes the system appear simpler and appealing to the end users and also helps with the context-sensitive navigation. iii) Content chunking; this is particularly essential for the various interfaces that contains a large amount of visual chunks that need to be reduced to improve their readability and makes them appear simple to the end users. In addition to these interface improvements, other aspects such as the operating systems used should be improved to enable the new products have the ability for increased operations. The company should also re-invent itself through the provision of more preinstalled and advanced phone applications. These applications which normally increase the utility and usability of such phones could be categorized broadly into: · Business Apps · Social networking Apps · Utility Apps · Education Apps · Gaming Apps · Retail Apps and · Travel Apps Conclusion In comparison to other mobile production industries, Nokia’s brand has elicited a lot of success. Since its launch, its sales have always been high. The factors that have helped in the contribution to this are its market strategies and the promotional services. Due to stiffer competition it faces though, its marketing strategies have to be designed in a way that it effectively elicit similar interest it has with its usual customers and other more potential customers. It has to work ways that would ensure a diversified market for its products. They could apply the differentiated marketing strategy which would also help inform them mostly of their customer preferences. The success of any given firm will be determined by how much a firm plays its marketing role. To become a leader in service provision, then a company has to give due consideration to is clients’ needs and provide the best marketing and promotional products and services to ensure that their customers are reached. Reference CHAWDHARY, Z. (2012). Windows phone 7.5 building location-aware applications : build your first Windows phone application with location and maps. Birmingham, Packt Pub. http://site.ebrary.com/id/10583711. RAMESH KUMAR, S. (2009). Consumer behaviour and branding concepts, readings and cases : the Indian context. Chennai, Pearson Power. http://proquest.safaribooksonline.com/?fpi=9789332501386. RUGRAFF, E., & HANSEN, M. W. (2011). Multinational corporations and local firms in emerging economies. Amsterdam, Amsterdam University Press. SWAN, K. 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