Marketing Mix and the Brand Reputation of Nokia

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Market Forces April 2008

Vol. 4 No.

MARKETING MIX & BRAND

RESEARCH

MARKETING MIX AND THE BRAND REPUTATION OF NOKIA
SYED EHTESHAM ALI College of Management Sciences PAF-Karachi Institute of Economics and Technology E-mail: s_ehtesham_ali@hotmail.com

Abstract Pakistan’s mobile phone market is growing very fast. The most selling brand in the market is Nokia. A hypothesis was developed that the reputation of a brand is a source of demand and the competitively superior quality image justifies a premium price. In this survey we assessed the reasons for preference of this brand based on established parameters of marketing mix (the 4 Ps). The objective of this study was to measure the extent of preference of these parameters. For this purpose a questionnaire was developed and administered to 240 respondents. The alternate hypothesis that at least one of the predictor variables would have a linear relationship with the dependent variable brand reputation was accepted. R² is 0.53, which indicates that about 53% of the variation on the dependent variable is explained by the predictor variable, which is significantly moderate. Among all the independent variables the slope for the product quality and promotion (advertising & communication) were higher than the rest. Regression coefficients for product quality and promotion (advertising & communication) were 0.95 and 0.85 respectively. This means that an increase in one rating (on the scale of five to one) of product quality and promotion (advertising & communication) would cause brand reputation to increase by 0.95 and 0.85 rating respectively.

1.0.0 OBJECTIVE:
The objective of this study was to measure how elements of marketing mix and their relationship affect the brand reputation of Nokia mobile phone. Though the marketing mix concept such as product, price, place and promotion are very important in analyzing the marketing strategy, the scope of the study was mainly

MARKET FORCES APRIL-2008

15

MARKETING MIX & BRAND

RESEARCH

focused on one aspect of brand equity i. e. brand reputation, the ultimate reflection of the correct blend of all marketing mix.

1.1.0 LITERATURE SURVEY 1.1.0 Brand
Branding has an ancient history. It could be traced back to the times when the ancient Egypt brick makers used to stamped symbols on the bricks for identification and distinction purposes (Farghuhar 1990). Nilson (1998) on the other hand found that ancient farmers used to put symbols on the cattle with the help of hot iron, which meant burning. The word brand has been derived from the Scandinavian word "branna" that means to burn. In Swedish language the word "brand", means fire. Thus when a producer put some marks or symbols on their product it will come in the category of branding (Nilson 1998). One of the advantages of strong brand name is that its helps in penetrating in a new market or a new market category. Globalization has created tremendous brand awareness and this awareness is not dependent on the availability of the products. (Czinkota & Ronkainen 2001). For example in Pakistan, brands such as such as McDonald, Pizza Hut and KFC had very strong awareness even before they opened their franchises in Pakistan.

1.2.0 Brand Equity
Brand equity is a relationship between customers and brands resulting in a profit to be realized at a future date (Wood 2000). Kotler and Armstrong (1996) were of the opinion that measuring brand equity is a tedious job. Nevertheless a powerful brand means high brand equity that helps in achieving ‘higher brand loyalty, name awareness, perceived quality, and strong brand associations’. Some of the major benefits of brand equity are brand awareness and consumer loyalty which helps in reducing marketing costs. Brand is an important equity; therefore, it should be carefully preserved by adopting strategies that would help in maintaining or improving brand awareness, perceived brand quality and positive associations. (Kotler &...
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