The Strategy of the CellSat Company - Essay Example

1. INTRODUCTION CellSat will be the only mobile satellite service offering pole-to-pole, gap-free coverage over every inch of the Earths surface. A CellSat satellite provides critical voice and data services for regions which are not served by other communication networks. A highly secure and reliable connection is made through making voice and data to route among the satellites without touching the ground. It will offer the following services. Clarity of Voice CDMA (Code Division Multiple Access) technology will help make CellSat calls better than other cellular networks in terms of them being secure and clear, the quality of voice will be better and the system capacity will be greater. (Anthony R. Bennett. (1997).20 Almost No Perceptible Voice Delay Calls whose orbits are a lot of times higher than normal satellites, are also known as geosynchronous satellites, offer no time delay in the voice and almost no echo effect. So to achieve this satellite phone will be using Low Earth orbiting satellites. Reliability The CellSat software is monitored from satellites unlike from the ground, through which easy and fast system maintenance and upgrades could be done. Fewer Dropped Calls CellSat will be designed on path diversity architecture which offers overlapping satellite coverage, so that any call can be made available to be handle from many satellites in any location. This will result in fewer dropped calls. 2. Motivation Motivation is any need that an individual seeks to satisfy. Before becoming a motive, it has to have intense stimulation or arousal. The motives are classifies as biogenic and psychogenic needs. Biogenic needs are need for drinks, sex and bodily comfort. Psychogenic needs are psychological needs which are also known as secondary needs, such as the need for nurturing, independence and achievement. Motivation can also be described as wanting like someone, which is why companies hire celebrities so that the consumers can be attracted towards them, and be motivated to buy that product. For instance David Beckham appeals to the youngsters and he is a brand ambassador of a lot of products. It is because of him that people buy the products, may be because they want to be like him. It is one of the psychogenic needs (Stein)Companies around the world spend billions of dollars for making a tagline and the right message for their products since motivation and perceptions influence consumer behavior in many ways. For a consumer market, anything can be a motivational factor. Like promoting a product through celebrities, is one of the most important motivational factor these days.. For any market, especially the UK market, Celebrities likely David Beckham can be a lot appealing to the youth market while those like Stephen Fry appeal to the more scholarly and discerning people. It is a companys responsibility to market in such a way that it motivates people, even if the product is of higher costs, marketers need to tell the target market about the higher value they get by consuming such worthy product. (William B. Wagner. (1989). 13-15.) For instance, a certain type of brand, say a brand of lager is targeted at a particular group of middle class, the tasteful drinker. Although the cost of lager is more than the other brands which are of the same kind on the market but the marketers inform that it will bring you a feeling of accomplishment and that one will become a part of a very sensitive group, and all of this is well worth. The same brand, which is made the same way and which costs the same is aimed at the youth, who want to appear trendy, cool, brave and unique. This market perceives that by seen to drink such a brand, they are associated with dynamism, vigor and energy. Thus the same product for this different group will be marketed differently. (Vincent-Wayne Mitchell, Mike Greatorex. (1988). 22) Consumers, buy brands just to feel better, and worthy. Like for instance in a super market while filling the trolley one doesn’t see what brands are you filling the trolley with, and once you meet a friend of yours who has his trolley filled with all the expensive products so one gets embarrassed. Motivation is not always about money, it can also be from a green or an eco perspective since people want to be seen as doing their bit by purchasing those brands which are the best known for social responsibility, social cause and re-planting trees. Motivation and Perception are two factors which heavily influences consumer behavior. Your motivation can influence the percentage of your perseverance and how much one wants to be perceived. Whichever way you take it. (Lyndon, 2000: 5) 3. Perception The consumer behavior can be influenced by another key tool of perception. People want to be perceived of being associated to a particular brand or a particular group. Ads today encourage one to take an action right away. They demand the consumers to come out the very moment and make the purchases or get discounts on early purchases, or they even tell when one campaign is ending so as to provoke action in the consumers. Consumers get a feeling that something is missing, if dont purchase the currently `in product, or the one with high tech, say for instance cell sat the same satellite phone. Human beings very easily make perceptions about a brand or a product through the word of mouth, what one says leaves an impact on the other. For instance if someone tells you that the black satellite phone is one of the most fashionable things to have, one will want to have it. This is going to influence you, thus you create perceptions about it. Though it matters not how true the statement is. It may be that the satellite phone isn’t that advanced and it has the same functions as other satellite phones of the same kind, but if you perceive it as a trendy thing, that for sure is for you. (Vincent-Wayne Mitchell, Mike Greatorex. (1988). 22) It is in humans natural instinct to be a part of something, no matter that something is somewhat hollow or it is the result of a great hype machine. Let’s consider cash for clunkers as an example. The program was extreme motivation for people who were to buy new cars, as they had the sources to buy them in the form of big cash. Even people who did not have an idea at the back of their minds to trade in their old cares went to the dealership because of the huge incentive that was being offered. Human being have such mindset that when they think that they are doing something worthwhile and they will get a good deal out of it, they will go for it no matter how they do that. If the perception of something likes them Cash for Clunkers is that people get a good deal, and that a planet lot if people are getting benefitted by the trendy thing they are reaching out for so the consumers will definitely go for it. Consumers are unpredictable, and will always go for those deals that will fit them in. Perception could be used in this way to drive sales for the Sat cell phone, and influence customer behavior. If this organization can convince people that it offers the best deal, the best satellite phone or have such a thing that the consumer just cannot live without, that means your organization surely is going to bring laurels and increased sales. (William B. Wagner. (1989). 13-15.) All this organization takes is good marketing, good advertising, content, and people who are willing to buy the phone, so that they can have the feeling that they are the first ones to have it. This feeling of being the first one to have a thing only arises when one has good perceptions about that thing. Thus its a two way thing, you have better marketing to set a better place in the consumer minds, theyll have better perceptions about your product and will certainly buy it. Hence your goal: accomplished. It is more important to increase the perceived product performance rather than the actual attribute performance. Similarly Myers (2003) stated that attiribute knowledge may influence brand equity more than consumer preference. Which is because of consumer prejudice and biasness, they way consumers evaluate is influenced by their memory. Current information, experience and knowledge can easily reduce consumer biasness (Mason and Bequette ,1998). Therefore, its not startling that brands that consumers suppose provide superior value are most preferred brands chosen often (Myers, 2003). Brands that have brand equity results in greater preferences and ultimately have higher market shares. (Vincent-Wayne Mitchell, Mike Greatorex. (1988). 22) 4. Attitudes Consumers have different mind sets, the way they behave is different. The way they act or react is different from how others do. Marketers need to understand the consumer attitude of their target market and need to cater them accordingly since different consumer’s posses different attitudinal factors. In the current times, technology is changing rapidly, which may both enlighten or confuse its users. Techno devices have innumerous substitutes and thus, the disgruntled users may severely hamper the growth of such devices by shifting to the others. Thus it is necessary for an organization to clearly understand and study different attitudes people have towards tech devices, so that no room for confusion is left behind on the organizations part (Karen et all, 1992:10.). For technological device, like the cell sat or any other such satellite phones, there are consumers that are Enthusiasts; these are the keen and daring digital users for whom technology plays a big and vital role in conveying useful advantages and they even gives out leisure and social opportunities of some of the functionality they might worth - as an exhausted personal and work life is prioritized by further digital innovations. This group requires a quick way through to new benefits and features - potentially through convergent devices (William B. Wagner. (1989). 13-15.). Another kind is that of Functionalists who are very positive, certain with and feel well-informed about all the latest technology. They engaged with digital services in a watchful and cautious manner. While open to new developments, these people are only prepared to widen their horizons if there exists a very clear benefit to them. This consumer group requires `fit for purpose devices, there are then products and services which are without bolt-on bells and whistles. Then comes another kind that is of the Economizers who view thinks that the digital services presents clear importance in the full range of advantages and the platforms are taken full advantage of at their removals. This consumer group needs a reasonable products and services with reasonable ongoing prices (William B. Wagner. (1989). 13-15.) Another group is that of the Abstainers, these people often o have right to use to digital devices or services at home but they dont use them very often, mainly due to lack of interest, confidence, knowledge. These people may also blame the devices for any problem that may arise or, if they are not provided with sufficient support and guidance, they may also turn away from this and get their backs hanging on the digitals services as they are not comfortable with experiencing something new and would like to stick to their old techniques because they are afraid that things might go wrong with the new techniques which they adopt. These abstainers are such group of users who needs substantial back-up to get them on track and to help them increase their experience and get used to of the digital communications services or devices. Now the Resistors, who are isolated from digital world, consider them to be of little or no significance to their lives - and keenly resisting technology acceptance. However, this phase of initial denial often masks a sense of being awed by technology and a wish for digital devices that are easier and simpler to use and understand. There is a need to show the benefits of digital services clearly to these people as well (Brown, 1989:7) 5. Decision making To begin with, Riquelme (2001) examined how much self knowledge consumers have when choosing between different satellite phones. The research was basically done on six key attributes which included telephone features, connection fee, access cost, satellite phone-t-satellite phone rates, call rates and free calls all that were related to satellite phone. The study debated that demographic factors have an influence on the evaluations of different attributes related to satellite phone choice. The study showed that specifically gender and occupation are significant variables affecting choice. It also depicted that consumers value special time planning properties in the choice of new satellite phone models. Moreover, it showed that new technical properties increase consumer motivation to buy new models. Thus, innovative services are also regarded as important as any other feature. Moreover, the size of the phone also influences consumer choice of the satellite phone model. (Vincent-Wayne Mitchell, Mike Greatorex. (1988). 22) Consumers, when choosing between different satellite phone models, value familiar brands. Finally the price of the satellite phone also plays an important role in the selection. especially among the consumers belonging to the lower income groups. The buying decision making process for satellite phones include looking at consumer motives and probing the significance of other different factors affecting the actual choice. In short First, although satellite phone choice is impacted by specific phone attributes, consumers assess and rank-order, their selection is often made without having proper investigation, evaluation and understanding of the specifications and features new models have. Second, Selection criteria primarily follows a coherent decision making process in which various different factors are assessed or evaluated, but also has some representative nature like brand name, which was regarded as important among many study participants. (Rick Wise, Niren Sirohi. (2005).8-13.) The most important suggestion for satellite phone manufacturers, resellers and other value chain members is that marketing or advertising of new innovative models should go further than just emphasizing properties but also to highlighting what users can do with all the innovative technical features. Satellite phone advertising have long been mainly based on promoting properties and abbreviations (e.g. GPS,MMS, SMS, GPRS, EDGE, Bluetooth) that are fully understood only by technology savvy consumers. Thus it is important that such jargons may either be replaced or clearly defined, so that consumers are well aware of the features. The significance of the technological devices resellers becomes continually more important as we enter the smart phone or satellite phone era where there are many properties and features that users need both hands-on guidance and better after sales service than before. Furthermore, as UK has high satellite phone penetration and active satellite phone users, the results obtained with British consumers might guide other research conducted in other countries.(Brown, 1989:7) (2473 words) Task 1(b) Opinion leaders reference groups Many theories claim that the basic motivational factor behind the purchasing behavior of consumer is how that product or service (in our case the cell phone) can satisfy the particular needs of that customer. But after researching further on the consumers’ social and interpersonal environment it has been revealed that the final decision that the consumer make (which brand or models to chose among the alternatives) are influenced by many reference groups such as friends, family, opinion leaders and etc (Isabelle, 1998:14.) (Vincent-Wayne Mitchell, Mike Greatorex. (1988). 22) The reference group refers to the groups used by an individual to direct his purchasing behavior in a particular situation. The reference groups in this paper consist not only of the groups that an individual comes in contact with daily such as family members, work associates, friends, classmates, but also include the groups that an individual does not have a membership in or a direct contact with, such as certain expected groups or people in a certain social level which are also called opinion leaders. Examples of such people are TV actors, players or anyone who has high social influence. (Lyndon, 2000: 5) (William B. Wagner. (1989). 13-15.) When a consumer does not has the knowledge of any product and the experience of purchasing that item, he may perceive the information and recommendation from his reference group as credible and thus accept them with certain confidence as to make his purchasing decision. The informational influence is based on the desire of everyone to make good informed decisions and optimize their choice. Any individual would accept an influence that improves ones knowledge and ability to cope with the environment. The informational influence only plays a significant role when the individual regards the behavior and value of reference group members as potentially useful information and takes them into consideration and thinks them as valid. Marketing practical applications can be seen from the use of expert power and internalization in advertising with the ads that feature doctors (or actors) impersonating doctors as spokespersons for OTC medicines. Influence determinants such as perceived risk, expert opinion from the opinion leaders and the individuals need for social approval make the need for reference groups very important in buying any product. One study found that consumers used both reflective and comparative appraisal to choose their products. Consumers do not only apply direct and verbal interaction to obtain the evaluations from reference group, but they also observe reference group members behavior to make a decision, this was stated in another research. (Lyndon, 2000: 5) (William B. Wagner. (1989). 13-15.) Recommendations These research and papers about the influence of reference groups conclude that there is a strong influence of reference group on cell phone consumers in their purchasing decisions in UK. Therefore, cell phone manufacturers and firms should continuously use the reference groups to target cell phone consumers in their future promotional efforts. When considering purchasing a cell phone, consumers may ask their friends and family members for information about different brands and models in the market, or one may also search online group discussions about cell phones in comparing different brands and models. . A good example in the cell phone market may be the fact that so many parents have complained about their childrens falling grades in school because their kids had played too many video games in their after school hours. As a result, those complaints might lower the students motivation to purchase the N-Gage, a cell phone famous for its video game function. (Isabelle, 1998:14.) (Vincent-Wayne Mitchell, Mike Greatorex. (1988). 22) Social Influence Social influence can be explained by the compliance process in which an individual is willing to satisfy a certain groups expectation in order to obtain the praise or to avoid the punishment from the group (this influence is socially bounded on the consumer) can also be explained by the "identification process" in which people are willing to better express themselves to the society by making themselves similar to the social group that they want to belong to. The best demonstration for this influence may be the famous experiment in which the group members were ready to change their answers even the right one after listening the answer from reference group. Suggesting in the advertisements that one may obtain social approval and acceptance by just using a certain commodity, will have an influence on certain groups of consumers. Advertisements in which consumers are punished by co-workers or friends for not using anti-dandruff shampoo, deodorant, or mouthwash, take advantage of the social influence. Under this influence, one may also actively follow the social groups beliefs and rules while neglecting the praises or punishments and decide to completely accept and internalize the value of that group. ÿOne good example of using this influence in marketing practice was used by soft drink giant Pepsi; the company has aired its Young Generation brand image extensively so that its targeted consumers have accepted the value of this specific group. Sony has a famous celebrity playing a successful managers role in its Sony cell phone advertisement implying that people who use the same cell phone will have the same characteristics with that expected group(Karen Maru File Ben B. Judd Russ Alan Prince. (1992).10.). Recommendations We can make advertisements, which show that whatever our target market is is using that our cell phones. We can portray that the whole neighborhood is using our product. If we are for example targeting the youth for our product we can show that all teenagers at school at restaurant joints and everywhere use our product so that the consumers will be socially inclined to purchase our product. We can also portray that do not having our product means that a person does not belong to a particular social group. We can make our phone a necessary thing to carry to be in that social class (Brown, 1989:7). AGE and Gender Industry figures reveal primary schoolchildren are the fastest-growing market for mobile phones with more than 400000 owning a handset. ÿITU indicators state that there are about 50 million mobile cellular users in the UK, representing nearly 60 per cent of the total telephone subscriber base. ÿEighty-four out of every 100 inhabitants has a cell phone, and the country has a total population of nearly 60 million. ÿOne in nine (11 per cent) children aged five to nine have a mobile phone, double the number two years ago and up from a mere 2 per cent three years ago. (Rick Wise, Niren Sirohi. (2005).8-13.) (Mohammed Rafiq, Pervaiz K. Ahmed. (1995). 29-31) Age and gender do play an important role in influencing decisions to buy cell phone in the UK market. This may be due to the reason that majority of youth seeks excitement in the products and also they are more exposed to new technological developments than other age groups particularly mature ones. The consumers do not bother much about the price of handset provided they are satisfied with other features. (Karen et all, 1992:10.) ( Brown, 1989:7) Male consumers of 30-50 years age group look for a handset of reputed brand and with all other features moderate, while the female consumers of the same age group prefer to buy a handset of attractive appearance with all other features fair. A handset with moderate appearance, and lowly developed core technical and value added features; is the probable liking of 50 years and above age group but at the low price. However the male consumers of this age group may see brand leverage fairly in selecting the handset but not at the increased price. However there were some significant associations that emerged overall between the habits in particular of the 18-20 year old group as they relate to the public spaces in which they use their mobile phones, the functionality of their telephones, their perceptions of mobile phone multi-tasking (i.e. in the case of driving), and the importance of initial age of usage as an indicator of future use. By and large, the differences between the genders and their perceptions appear to reflect something of a waning trend amidst this new generation of technology adopters. ÿ Females and males have many perceptions and habits in common and while they may differ on the color of mobile phone accessories they choose or the melody of their ring tone they are fundamentally using their phones for the same purposes and in similar ways. The female consumers probably due to their overwhelming orientation to `physical appearance of handset do not find `brand as much important as men do. The prevalence of playing games on mobile phones is surprising, given that such results would better characterize the youth market in Japan, over that of the UK; nevertheless, it appears males and females alike exhibit this preference. ÿOverall, it is evident that mobile phone usage in the context of educational settings is going strong, reflecting a higher group penetration level than on average in the UK. Recommendations The number of kids and teens who own cell phones has risen sharply in recent years. The Pew Internet and American Life Project estimates that 58% of 12-year-olds had a cell phone in 2009, up from 18% in 2004. About three out of four (75%) of teens aged 12-17 have a cell phone. These findings indicate that mobile marketing has become a critical tool for advertisers interested in reaching kids and teens. New applications being developed for the iPhone and iPod Touch are, in some cases, excellent examples of how leading edge technology can be used to capture the attention of kids and keep brands top of mind. Different sorts of ads should be made which capture the attention of kids, teens and baby boomers respectively. For each sector the company should make ads such that they capture the attention and needs of that age group. Messages and colors that attract feminity should be used to attract females. (Anthony R. Bennett. (1997).20) ( G.E. Kiser, S.R.G. Rao, C.P. RAO. (1974) 18-22.) (1671 words) Task 2 Individual Critical reflection on Learning Outcomes Learning is something which stays with us throughout our lives. It starts when we are infants and comes along as we get older and older. It is so because in the course of our lives we are experiencing new things, and then we are learning from each of the new experiences. When we talk about learning a specific module, for instance a subject, a lot of questions initially comes to our mind. Questions which are not actually related to the subject matter, but they are somehow related as part of our actions. Information Technology for instance was a new course I opted for in my first semester. I was expecting a lot of positive outcome from this course, but questions such as, why do I want to study this course?, what benefit will it give me?, when the world is so much manipulated by science and scientific method, how does IT play a role and how is it associated with science? It is in human nature that with every positive action is linked a negative aspect or negative view point. At the start of this course, I was expecting that a lot of research is going to take place, along with it there will be practical demonstrations. The world is more into computerized and the world we are living in has become a computerized arena. I prefer to learn through demonstrations and practical implications more than the bookish, written material which is available. Therefore the learning outcome which I discovered was more practical and not very theoretical. Through this type of learning I can now retain most of the stuff. Things are clearer to me. My reflexes have started working better. In this way problem solving skills and reflexive practices were enhanced. A person becomes self empowered and personal development takes place. However, if the learning outcomes are taught to us, then it will not be that productive as everyone has a different ability and absorbs things according to their abilities and reflexes. In this way I believe self expression has also been improved. However even after discovering my own learning outcomes there are still some queries that remains. For instance, how could people not be practical and rational by adopting techniques which suits them the best and how could they just accept what the authorities direct them to do. How can one learn until and unless he doesn’t discover what is more easier. Therefore I believe that one should take all the steps which helps in making things easier and in which one thinks that he can be more productive. (431 words) BIBLIOGRAPHY: William B. Wagner. (1989). Icon: Backfiles. Customer Service: A Competitive Covenant. Management Decision. Volume: 27 (1), 13-15. Vincent-Wayne Mitchell, Mike Greatorex. (1988). Consumer Risk Perception in the UK Wine Market. European Journal of Marketing. 22. Mohammed Rafiq, Pervaiz K. Ahmed. (1995). Using the 7Ps as a generic marketing mix: an exploratory survey of UK and European marketing academics. Marketing Intelligence & Planning. 13 (9), 29-31. A. R. Thorne. (1971). The marketing mix - a problem analysis. European Journal of Marketing1971. Volume: 5 (4), 1-7. Lyndon Simkin. ( 2000). Marketing is marketing- may be. Marketing Intelligence & Planning. 18 (3), Anthony R. Bennett. (1997). The five Vs - a buyers perspective of the marketing mix . Marketing Intelligence & Planning . Volume: 15 (issue 3), G.E. Kiser, S.R.G. Rao, C.P. RAO. (1974). Clues to the design of a marketing mix. European Journal of Marketing . 8 (2), 18-22. Lew G. Brown. (Summer 1989). MARKETING. Vol. 6 (No. 3 ), 7. Askville. (n.d.). Retrieved 12 16, 2010, from http://askville.amazon.com/motivation-perception-influence-consumer-behavior/AnswerViewer.do?requestId=40506883 Stein, S. (n.d.). Helium. Retrieved 12 16, 2010, from How does motivation and perception influence consumer behaviour: http://www.helium.com/items/1601996-how-does-motivation-and-perception-influence-consumer-behavior Read More