(Nokia)

Index
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S.no. Title 1. 2. 3. 4.
Introduction

Page no.
3

Task 1

4-9

Task 2

10-11

Task 3

12-14

5.

Conclusion

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6.

References

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Introduction
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Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. It makes a wide range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more. The key area Nokia focuses on is through developing, growing, and offering consumer Internet services. They also provide equipment, solutions and services for communications networks through Nokia Siemens Networks. Nokia is increasing its offering of consumer Internet services, in five areasmusic, maps, media, messaging and gamesand working to deliver those services in an easily accessible manner to consumers . Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokias promise is to connect people in new and better ways. Nokias strategy is to build trusted consumer relationships. Nokia corporate responsibility programming reflects an increasing interest (both internally and externally) in the impact our business actions have on communities from societal, environmental, and economic perspectives. Also Nokias Corporate Responsibility (CR) agenda is framed around the Nokia Values and is carried out in all aspects of our work to ensure customer satisfaction and respect, and also to assist them in embracing renewal and striving for achievement.

TASK 1

1.1 With reference to an organization you are familiar with, describe two planning principles and two processes used in developing a marketing strategy.
Ans. Planning principles are those principles which an organization considers while developing their marketing strategy. Any marketing scheme that has been developed must be based around the principles of marketing And here, planning principles adopted by Nokia, which is a communications based company and focuses on telephone technology are mentioned. There are many priorities within a business, but in a marketing orientated company like Nokia, many of the principles will be high on the agenda.
Two of them are:-

Customer-satisfaction and perception: - while making a market strategy it must

be find out whether customers' expectations are being met by current products or services. Perception is based on the images, consumers have of the organization and its products, this can be based on; value for money, product quality, fashion and product reliability.

Be aware of the environment: - An organization should always know what is

happening within their designated market, if it is changing, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive.

Marketing process
1. Analyzing marketing opportunities

Defining the market Consumer assessment Environmental assessment Company resource assessment Demand analysis and sales forecast Identifying Market Segments and Selecting Target Markets

2.

Marketers set priorities for business opportunities, concentrating on market segments within which they expect to achieve the best overall economic return from their product or service. Market segmentation and target marketing are the processes used to isolate these opportunities. Market segmentation is the process of grouping customers based on their similarities Market segmentation allows a company to:

Understand the different behavioral patterns and decision-making processes of different group of consumers Select the most attractive segments or customers the company should target Develop a strategy to target the selected segments based on their behavior 3.

Developing marketing strategies Positioning Develop new product, test and launch Modification in the stages of product life cycle Strategy choice depends on the strategy pursued by the firm Consider changing global opportunities and challenges Planning marketing programs

4.

Transforming strategy into programs Managing Product Lines, Brands, and Packaging Managing Service Businesses and Ancillary Services Designing Pricing Strategies and Programs Selecting and Managing Marketing Channels Managing Retailing, Wholesaling, and Physical-Distribution Systems Designing Communication and Promotion Mix Strategies Designing Effective Advertising Programs

Designing Direct-Marketing, Sales-Promotion, and Public-Relations Programs

Managing the Sales force

5.

Managing marketing efforts Organizing resources Implementation Control - Annual control, Profitability control, Strategic control

1.2 Describe how Porters five forces model helps determine the strategic options available to an organization?
Ans. Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market Strategy consultants occasionally use Porter's five forces framework when making a qualitative evaluation of a firm's strategic position. . They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess the marketplace given the overall change in industry information.

The five forces

1. The threat of the entry of new competitors

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. Economies of product differences

2. The threat of substitute products or services

The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: Buyer propensity to substitute Relative price performance of substitute

3. The bargaining power of customers (buyers)

The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution

4. The bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a

source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation

5. The intensity of competitive rivalry

For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

Sustainable competitive advantage through innovation Level of advertising expense Powerful competitive strategy

According to Porter, the five forces model should be used at the line-of-business industry level; it is not designed to be used at the industry group or industry sector level. An industry is defined at a lower, more basic level: a market in which similar or closely related products and/or services are sold to buyers. A firm that competes in a single industry should develop, at a minimum, one five forces analysis for its industry. Porter makes clear that for diversified companies, the first fundamental issue in corporate strategy is the selection of industries (lines of business) in which the company should compete; and each line of business should develop its own, industryspecific, five forces analysis.

1.3 Select one other analysis technique and describe how it can be used. Include details of its use within a named organization.
Ans. SWOT analysis is an other way of deciding on a successful marketing scheme, one must look at strength, weakness, opportunity and threat. Strength (internal factors) - Is looking at the companies current market share and researching how recognized Nokia is amongst consumers in the target market. Nokia is currently one of the most popular Mobile communications companies in the industry. Weakness (internal factors)- This is basically looking at where the product is failing or not doing as well as it should in the market. Nokia's problems are that: 1. They are currently aiming their products at a saturated market segment. 2. Their wage costs are forever rising. 3. Higher import charges have now been put into place. 4. There are some quite high supply chain costs that Nokia are currently paying. Opportunity (external factors)- This is the area in which Nokia can make more profit, or gain more market share. There are 2 ways in which Nokia can currently do this: 1. Improve the technology that they are using to make their phones and use in their products, under the Nokia brand name. 2. Using innovation to re-invent their products, change and develop within the market to offer something none of the competitors have. Also the fact that phone call charges are being forced to fall should prove to be an opportunity for Nokia to sell to the people, who previously may have not purchased a phone because of higher call charges. Threat (external factors)- This is looking mainly at the competition that are taking away
Nokia's current market share and also government legislations (the total costs of 3G licensing

in Europe is 110 billion euros) that could hinder Nokia's development as a company.

TASK 2 2.1 Discuss the advantages and disadvantages of two different marketing strategy options. Illustrate your work with a selection of appropriate example.
Ans. Two different marketing strategies are:

A. Market leader strategies

Typically there are three types of market leadership strategies that a marketer will consider

1. Expand total market

New users of the product New uses of the product More usage on each use occasion

2. Defend market share

Developing new product ideas Improve customer service Improve distribution effectiveness reduce costs

3. Expand market share

By targeting one or more competitor Without being noticed by government regulators

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For example
Nokia through its basic phones has been adopting market leadership strategies. Various advantages and disadvantages of this strategy are:-

Advantages
1. Nokias basic phones proved to be successful. 2. They have mass appeal. 3. Potential growth.

Disadvantages
1. There are low barriers to entry 2. Low margins 3. Low turnover

B. Market niche strategies

In the niche strategy the firm concentrates on a few target markets. It is also called a focus strategy. It is hoped that by focusing ones marketing efforts on one or two narrow market segments and tailoring your marketing mix to these specialized markets, you can better meet the needs of that target market. The niche should be large enough to be profitable, but small enough to be ignored by the major industry players

For example
Nokia through its smart phones has been adopting market niche strategies. Various advantages and disadvantages of this strategy are:-

Advantages
1. It provides higher margins. 2. First mover advantage.

Disadvantages
1. Small potential market 2. Lack of disposable income.

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TASK 3 3.1 Provide an outline of current changes in the marketing environment for a named organization.
Ans. Current changes in marketing environment of nokia are:

1. Political: A change in government, or a change in government policy Political

factors- Legal constraints (such as the G3 technology constraints that Nokia have to take into consideration) must be taken into account because many businesses aim to make a profit so they may be tempted to mislead their customers about prices, quality of products and the availability of their products

2. Economical: The governmental bodies in the U.K have introduced new laws into
the business environment, which ensure that none of these procedures take place; if a company is to be successful they must follow all of these laws.

3. Social: Environmental social and ethical factors. Some businesses view profits are
more valuable than a strong ethical code and this can govern behavior and business conduct. Some un-ethical practices are against the law and companies cannot become involved in them but there are also some practices that arent illegal by law but are considered highly un-ethical by the consuming public, companies who engage in these practices can lose a lot of market share if they are found out. However, Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and

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this is one of the reasons they are such a popular brand of mobile phones.

4. Technological: In the communications market technology is perhaps the most

important factor that companies like Nokia have to take into consideration.

3.2 In your view how might such an organization respond to the changes described?
Ans. An organization may respond to the changes through various measures like: 1. Through extensive employee engagement, Nokia may keep renewed their values corresponding to the changing environment. 2. Nokia should provide facilities and equipment such as production machinery and tools and tools, equipment, vehicles, computers, buildings, factories, offices and plants for the survival of the company or running operations to respond to technological changes. 3. To increase cost-efficiency and adapt to the challenging market environment, Nokia may announce new voluntary measures aimed at reducing personnel-related costs and lessening the need for involuntary redundancies. 4. Nokia should increase its offering of consumer Internet services, in five areasmusic, maps, media, messaging and gamesand work to deliver those services in an easily accessible manner to consumers. 5. Customer satisfaction stems not only from Nokias products but also from how effectively they interact with their community. As Nokia becomes more and more of a global entity, their obligations in terms of how they satisfy their stakeholders grow. Nokia corporate responsibility programming reflects an increasing interest (both internally and externally) in the impact our business actions have on communities from societal, environmental, and economic perspectives 6. Nokias Corporate Responsibility (CR) agenda is framed around the Nokia Values and is carried out in all aspects of our work to ensure customer satisfaction and respect, and also to assist them in embracing renewal and striving for achievement.

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7. Companies dispose their waste in ways that damage the environment (pollution) and not ensuring high standards of hygiene and safety in the workplace and outlet stores, all of these are illegal and can leave companies in big legal trouble. Nokia have to manage to be quite environmentally friendly and have not to do anything that the consuming public have taken huge offence to, they should be very careful about this.

3.3 How would you expect an organization to develop functional areas in order to achieve its maximum-term marketing objectives.
Ans. An organization should develop its functional areas in the way as nokia had done it. Nokias business operations and cost base according to market demand and safeguard future competitiveness. Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company. Nokias business values provide a sense of direction for consistent behavior as employees and citizens of the world, and a great internet company. The key area Nokia focuses on is through developing, growing, and offering consumer Internet services. They also provide equipment, solutions and services for communications networks through Nokia Siemens Networks. Nokia tend to promote the new technologies and mobile devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign. Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and, social networks are becoming central to how people communicate. Nokias promise is to connect people in new and better ways. Nokias strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.

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Responsibility of the organization toward these stakeholders is that It should build trusted consumer relationship by providing compelling and valued consumer solutions, beautiful devices and enriched services. As Nokia becomes more and more of a global entity, their obligations in terms of how they satisfy their stakeholders grow. Nokia corporate responsibility programming reflects an increasing interest (both internally and externally) in the impact our business actions have on communities from societal, environmental, and economic perspectives.

Conclusion
Nokia, which is a communications based company and focuses on telephone technology, has proved to be successful through its various strategies. Nokia's strategy is stated as "Our business objective is to strengthen our position as a leading communications systems and products provider. Our strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Nokias business values provide a sense of direction for consistent behaviour as employees and citizens of the world, and a great internet company. The purpose of the organization is to connect people in new and better way by offering Nokias devices, and services. Responsibility of the organization toward these stakeholders, build trusted consumer relationship by providing compelling and valued consumer solutions, beautiful devices and enriched services. Also Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones. So, it can be concluded that Nokia keeps renewed their values corresponding to the changing environment.

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References
1. Michael Porter, Nicholas Argyres, Anita M. McGahan, "An Interview with Michael Porter", The Academy of Management Executive 16:2:44 at JSTOR 2. Michael E. Porter. "The Five Competitive Forces that Shape Strategy", Harvard Business Review 3. Grant, Robert M. (2003). Cases in Contemporary strategy

analysis. USA, UK, Australia, Germany: Blackwell publishing. ISBN 1405111801.

4. Lieberman, M. and D. Montgomery, First-mover advantages, Strategic Management Journal, Volume 9, Summer 1988. 5. Marketing Management Philip Kotler (South Asian perspective)

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