The Marketing Strategy Of Nokia Corporation Marketing Essay

The Marketing Strategy Of Nokia Corporation Marketing Essay Nokia Corporation applied the marketing strategy and helps the organization achieve the maximum profit potential. Marketing strategy is a process that company applies to focus its limited resources on the best opportunities to increase sales achieve the goals of the company and gain the competitive advantages in the markets. Marketing strategy is an important planning that involve the basic and long-term activities of company with the considered of the situation and challenge of company faced and therefore contribute to the companys goals. Actually marketing strategy is one of the functional strategies. The functional strategies are the decision rules or guidelines in each functional area of company. Functional areas that company may implement a functional strategy include research and development, finance, public relation, human resources and marketing departments. 4 Ps of Marketing Marketing is not only about delivered the product or service to the end user, should containing the benefits to the end user. Inside the marketing strategy of Nokia Corporation contain the marketing tool call Marketing Mix which introduced by Neil Borden in year 1953. Marketing Mix is one of the most fundamental theories in marketing area and is a combination of element of company in promoting companys product or brand to achieve marketing objectives and customer satisfaction. The element combination of marketing mix is product, price, place and promotion and was proposed by E. Jerome McCarthy in 1960. Product is the first element in the marketing mix and can consider as customer solution. Product should satisfy the customers need or wants, more advanced is the superiority of the product against the competitor and what advantages the company gain from it products. According to the marketing principle of Philip Kolter, the product should be in three components. The three components were core product, actual product and augmented product. Since the Nokia primary products are mobile telephones and portable IT devices. The core component is the end benefits of product for the buyer. The actual product is the characteristics of product such as quality level, features and branding. The augmented product is the support items of product like the after-sale service, warranty and delivery. On 11 February 2011, Nokias CEO Stephan Elop have announced a new strategic to alliance with Microsoft Corporation. This strategy purposed is to replace the mobile operating system Symbian and MeeGo with t he Microsofts Windows Phone operating system. The Windows Phone Lumia is the major shot of Nokia to winning back a market lost to Apple, Samsung and Google. Windows Phone Lumia had been announced by Nokia as the worlds most innovative smart phone. The features of Lumia are contain the Carl Zeiss lens that can capture blur-free video even in the non-ideal environment condition, the new technology PureMotion HD+ display make the Lumia is the worlds brightest, fastest, and most sensitive touchscreen and the wireless charging that enable customers charge up without plugging in. All of these features are for the purpose of customers convenient and satisfaction when using Nokias products. Nokia also provided after-sale service for customers. If customers facing some problem of products can contact nokia support through the phone or directly visit to the Nokia store and also can give some feedback through the social network such as Facebook and Twitter. Customers also can download games, t hemes, ringtones and wallpapers at Nokia Ovi store. For the products characteristics, Nokia Lumia have more beautiful color and people was said this is to against Nokia biggest competitor; Apple Computer. Inc. This is because Apple product, IPhone only had black and white color. Price Determination of the price of company product is important because this is related with profit of company. When company releases a new product, the price is estimate by the cost and products value and must be aware because it has a great impact to the demand and sales. The basic pricing strategies are market skimming pricing, market penetration pricing and neutral pricing. Market skimming pricing strategy is the process setting the highest price initially based on the product value to make highest profit. After the demand of first group customers is satisfied, company will lowers the price to attract another. The Neutral strategy is process set the price by the general market and competitors prices. The disadvantage is company cant maximize profit although this is the most safety way to compete with other company. Nokia had cut the price of Lumia 900 after Microsoft announced that Windows Phone 7 wont be upgradeable to the Windows Phone 8. Nokia cut almost price almost half is to att ract more demands to clear the store and to cut the cost. Penetration strategy is about the deepest price cuts to make sure company product always the lowest on the markets and mostly apply when new product are release. Price Nokia Lumia 920 in US is $100 less than Samsung Galaxy S3 and $200 less than Apples IPhone 5 and the ATT, second largest telecom operator in US also sell Lumia 920 in $99.99 is less $100 than other Windows Phone 8-HTC 8X. Promotion Promotion is about the delivery of information of product to the several parties through the method such as advertising, personal selling, public relations and sales promotion. Nokia has used its Connecting People since 1992 as an advertising slogan. This slogan meaning is Nokia mobile help people connect with each other wherever near and far in various geographical locations. Nokia also popped up their Lumia commercial on their YouTube Channel. Nokia had sold over 85 million devices and 4.5 million of those are Lumia in the Quarter 4 of 2012. This is because Nokia announce Lumia as a boost for Q4 sales to placing the product in front the media and public.