Nokia Product Categories
MARKETING MANAGEMENT
November 2007
Nokia cell phones have been arranged into four different categories, according to use, price, need etc. The four categories are Multimedia, Business, Lifestyle and Connect and each category contains several different phone models. Here for this exercise, I shall evaluate these different business units in relation to the 4Ps model of marketing.
1) In what way are the 4P issues different in Nokia 's different mobile phone business units?
The business units were created as a means of product segmentation. Each of these units caters to a different market segment and has a different target audience. Concerning product development, each of these units sets out from a different starting point. The business phone development unit would not consider appearance and fashion-forwardness as its first priority; it would prioritize connectivity (as in internet connections, WAP, Bluetooth etc.) and time management applications such as the calendar. That is not to say that business users are not interested in the appearance of their phone, but when choosing which they want to pay for, appearance or functionality, they choose functionality. Therefore, developing the functions that business users use is more important for the E-series product development than the N-series, which is targeted at an audience of young users who want to use their phones to connect to the "wireless world" and also as a multimedia unit which allows seamless use between the phone and the pc. The business unit phones are most likely to be priced according to the value-based method, because most of these users are not buying it for status or psychological reasons. They need it in their work and therefore are willing to pay a price, even if it is higher, to make working easier. Also often business phones are paid for, at least in part, by the employer which allows for a bit higher price. Business phones can be distributed in slightly different ways than normal
November 2007
Nokia cell phones have been arranged into four different categories, according to use, price, need etc. The four categories are Multimedia, Business, Lifestyle and Connect and each category contains several different phone models. Here for this exercise, I shall evaluate these different business units in relation to the 4Ps model of marketing.
1) In what way are the 4P issues different in Nokia 's different mobile phone business units?
The business units were created as a means of product segmentation. Each of these units caters to a different market segment and has a different target audience. Concerning product development, each of these units sets out from a different starting point. The business phone development unit would not consider appearance and fashion-forwardness as its first priority; it would prioritize connectivity (as in internet connections, WAP, Bluetooth etc.) and time management applications such as the calendar. That is not to say that business users are not interested in the appearance of their phone, but when choosing which they want to pay for, appearance or functionality, they choose functionality. Therefore, developing the functions that business users use is more important for the E-series product development than the N-series, which is targeted at an audience of young users who want to use their phones to connect to the "wireless world" and also as a multimedia unit which allows seamless use between the phone and the pc. The business unit phones are most likely to be priced according to the value-based method, because most of these users are not buying it for status or psychological reasons. They need it in their work and therefore are willing to pay a price, even if it is higher, to make working easier. Also often business phones are paid for, at least in part, by the employer which allows for a bit higher price. Business phones can be distributed in slightly different ways than normal
References: www.nokia.com http://www.sfu.ca/~mvolker/biz/mktintro.htm