Nokia and Smartphone Marketing Plan
The article I have chosen reports that with the launch of a new range of smartphones, Nokia is also effectively changing its approach to marketing. The company is moving away from more traditional marketing like advertising in print media and shifting towards advertisements through social media and digital campaigns. This allows Nokia to place a greater emphasis on collaborating with its customers through its marketing communication channels. In doing so, Nokia hopes to be able to rival dominant market competitors by increasing its market share and tap onto the rapidly growing smartphone industry.
The main challenge that Nokia faces is to rival the market competitors such as Apple and Android who dominate the market for smartphones. As of August 2011, Nokia only owns 2% of the market share whereas Apple and Android owns 28% and 39% respectively. In addition, the smartphone segment a rapidly growing segment in the mobile handset industry with 40% of all US mobile users owning a smartphone. Hence Nokia needs to increase its market share in this segment to earn more profits.
For Nokia to be able to compete with the market leaders, marketers need to create competitive advantage by understanding the needs of customers better than the company’s competitors. To do so, marketers can research by collecting customer feedback by conducting surveys or by managing marketing information. This allows better fulfilment of the customers’ needs and hence delivers more customer value. Also, as a market challenger, Nokia is also able to capitalise on the second-mover advantage by observing the leader’s strength and weakness to improve on it.
Another strategy to increase customer value can be achieved through product positioning and differentiation. In the article, Nokia collaborates with Microsoft to produce a new range of smartphones. This allows the company to differentiate its products from other competitors to create customer value. Nokia can also position their products such
The main challenge that Nokia faces is to rival the market competitors such as Apple and Android who dominate the market for smartphones. As of August 2011, Nokia only owns 2% of the market share whereas Apple and Android owns 28% and 39% respectively. In addition, the smartphone segment a rapidly growing segment in the mobile handset industry with 40% of all US mobile users owning a smartphone. Hence Nokia needs to increase its market share in this segment to earn more profits.
For Nokia to be able to compete with the market leaders, marketers need to create competitive advantage by understanding the needs of customers better than the company’s competitors. To do so, marketers can research by collecting customer feedback by conducting surveys or by managing marketing information. This allows better fulfilment of the customers’ needs and hence delivers more customer value. Also, as a market challenger, Nokia is also able to capitalise on the second-mover advantage by observing the leader’s strength and weakness to improve on it.
Another strategy to increase customer value can be achieved through product positioning and differentiation. In the article, Nokia collaborates with Microsoft to produce a new range of smartphones. This allows the company to differentiate its products from other competitors to create customer value. Nokia can also position their products such
References: Lara O 'Reilly. (2011, October 27). “Step change” in marketing will position Nokia for a bright future. Marketing Week. Retrieved from http://www.marketingweek.co.uk/sectors/telecoms-and-it/%E2%80%9Cstep-change%E2%80%9D-in-marketing-will-position-nokia-for-a-bright-future/3031369.article Lara O 'Reilly. (2011, October 21). A blinkered digital vision makes marketers forget the customer. Marketing Week. Retrieved from http://www.marketingweek.co.uk/disciplines/digital-strategy/a-blinkered-digital-vision-makes-marketers-forget-the-customer/3031191.article Apple Press Info. (2011, October 17). iPhone 4S First Weekend Sales Top Four Million. Retrieved from http://www.apple.com/pr/library/2011/10/17iPhone-4S-First-Weekend-Sales-Top-Four-Million.html Johan Cyprich. (2011, August 8). August 2011 Smart Phone Market Share. Retrieved from http://www.cyprich.com/2011/08/08/august-2011-smart-phone-market-share/ Don Kellogg. (2011, September 1). 40 Percent of U.S. Mobile Users Own Smartphones; 40 Percent are Android. Retrieved from http://blog.nielsen.com/nielsenwire/?p=28790