Monday, August 13, 2012

Marketing in the Cellphone Industry - Stewart Farr (2001)


("I know this is a bit old now guys.........but makes for some interesting reading when you reflect on it - turns out I was right, and Apple cashed in on this concept" -Stew)

1.1       The purpose of marketing in the Cellphone industry.

The purpose of marketing cellphone's, is no longer to sell a simple piece of electronic equipment. It now sells an essential form of communication, in today’s mobile world.
The Cellphone is now sold as a cultural icon – symbolising a personality of the consumer. The advertising jumps out at you, no matter where you are – not only through the visual and verbal networks of advertising but also the subliminal peer pressure of today’s society.

1.2       Built for Humans

Items that are built for humans in mind are now the huge pulling forces in today’s markets. User-friendly products are now becoming major exploit due to the fact they can easily exploit any market. Ergonomics has become a multimillion-dollar industry – with most products being designed with the human in mind. Consumers like the security of mind by knowing that a Cellphone contains certain aspects that make their life easier or safer.
An example of a good user-friendly marketing campaign is Nokia’s. Their “Human Technology” campaign improved their share price from a low of less that $27 U.S, to an all time high of $30.25 US, which is still increasing. Consumers responded well to the campaign, increasing sales by over 25%.
All the phones now produced have some form of ‘hands free calling’. Motorola now are installing “BASS boosted, CLEAR response hands free speakers”, for less ‘mechanical’ distortion and more ‘human’ crisp, clear sound.

 1.3 Not just Communications

Mobile phones are developing to more that mobile communications. They now people phonebooks, email, Internet, arcade machine, timetable, organiser, alarm, pager, text editor, modem, fax and now contain more functions then a personal computer. It could be said that cellphone's are the personal computers of the future.
People now go out looking for which phone has got the most functions, and Cellphone companies take great advantage of this by glorifying the functions on their mobiles.

1.3       Additional Services provide by the Cellphone manufacturer

These greatly determine the Cellphone market. Alcatel a large communications company offers no support for their distributors and do not sell directly to the market, for this reason they sell very poorly in most countries. However in New Zealand, Vodafone’s largest selling mobile brand is Alcatel – Vodafone do most of the advertising and hire purchase for the Alcatel’s because they suit well to Vodafone’s pre-paid market (which accounts to 70% of Vodafone’s sales).
Nokia are at the other end of the spectrum, developing advertising, customer support and providing an expensive hire purchase scheme for the consumers – this in turn has made them the largest Cellphone manufacture in the world.

1.4       Effective Product Naming

The names of cellphone's are becoming abbreviated and cut to suit the style of the target audience. Simplicity is the key when naming a Cellphone, something that people remember – a letter, word, number or feeling works well as the consumer is not thrown into ‘manufacturing jargon’.
Good use of numbers is the Nokia Series, 252, 918, 5110, 5120, 6220, 8250 – each one is easily remembered as the short term memory can store up to 7 digits.
Good use of letters is demonstrated with the new Motorola series, L series and V series.

1.5       The use of brand loyalty

With a well-established company, it is easier for them to get their products noticed. They do this by placing their company logo in the background, in the corner, anywhere where is noticeable but not distracting, on their advertising. People recognise these symbols and instantly want to know more.
Alcatel and Motorola use this all the time, placing their logo in the background to posters, handouts, anything that gets them noticed.

1.6      Styling the product to the target market

There is no point is selling ice to Eskimos, the same rule applies to Cellphone marketing. Cellphone marketeers have only just trained to the US market – with their style to distinctive, making it hard for Cellphone manufactures to adapt to the market.
French cellphone's are more style then function – often containing fewer buttons and comfortable shape.
Asian cellphone's are more function and size – having enough electronics to scare a personal computer in the size of a few credit cards.

Bibliography


1)         Handouts –     Motorola:        Lseries+, WEB W/O WIRES
2)                                                         GSM V2288 FEATURE LIST
3)                                 Nokia: 5120, The smart phone with the smart key
4)                                                         8250, Walk on the Blue Side
5)                                                         5110, The smart phone with the smart key
6)                                                         6210, Be ready
7)                                                         8210, Live with Passion
8)                                 Alcatel:            One Touch 302
                                    And various Sagem, Ericsson & Philips

1)         Web sites -      www.motarola.com.au – For company profile
2)                                 www.nokia-asia.com – for company profile
3)                                 www.nokia.com – for customer support
4)                                 www.alcatel.com – for company profile
5)                                 www.sagem.com – for new phone web adverts
6)                                 www.sony.com – for new phone web adverts
7)                                 www.cnet.com – for market research on Nokia expected sales
8)                                                                  www.quicken.excite.com/tickersearch  - for market capital and annual revenue of Nokia and Motorola.