Type: Definition Essays
Sample donated: Renee Gutierrez
Last updated: April 15, 2019
To produce a marketing plan for 3G mobile phones there are areas of marketing that need to be looked at and understood. The marketing concept has evolved over the last fifty years through three distinctive phases. Today marketing reflects a key approach to doing business. It realises the importance of the customer as well as an acceptance of a complex business environment. Changing consumer needs and wants influence an organisation’s strategies and plans.
The main key in marketing is meeting customer needs. The Chartered Institute of Marketing uses the following definition:Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably.The key feature is that it places the consumer at the centre of the organisation’s activities.
Research and asking consumers what they want and can identify what the consumer requirements are, which would influence them in buying their product. Consumer requirements change all the time with people having changing spending power due to increase in salary etc. Anticipating involves looking to the future as well as the present to see what consumers are buying and what they think they could improve so they buy more. If consumer satisfaction is not met then they will look for alternatives. They want the right goods, to be available at the right price at the right time and in the right place.
3-G mobile phones are to be the latest accessory in technology from the businessman to the teenager. To provide a successful (profit making) product it needs first to ask “what can we offer our customers that today’s mobile phone does not”. This is all necessary to keep the companies in business successfully.In order to succeed in the maturing cellular industry, cellular companies must alter its strategy. Demand for its existing phones has neared saturation. In addition, they have reached its upper limits of the market share potential. Therefore analysts point out the need to drive up the prices of its phones by introducing new, unique products that will drive people to purchase a new phone and be willing to pay more for it.
Cell phones are a product that is a commodity to the market and naturally prices tend to decline. Therefore cellular companies need to do a good job of communicating to customers the benefits of its services and how they can be used to improve one’s lifestyle. Their response to this challenge is to blitz the market with 20 promising new products in a specific time limit. They will introduce new phones that offer multimedia messaging, enabling consumers to send not just voice, but also graphics, audio clips, and photographic images over cell phones. They will also be offering the digital-camera-in-a-phone. It also hopes to incorporate entertainment services into its phones, so the user could use it to play games, do electronic shopping and even have access to office applications. But to own one of these phones would be pointless if not enough consumers purchased the 3G phone as they could not communicate with other people who do not have these added services.MarketingMarketing simply means business.
It is the marketing of a business that directs and drives it successfully. It helps in the future health of any business to succeed and stay successful. As well as making a profit is important; an organisation should also develop its market share and search for brand leadership. This is what the mobile phone networks are trying to do with introducing the new 3G mobile.
The work involved in the marketer must monitor the profit of the business and attempt to foresee the likely trends. At the same time, rival companies should be monitored for vulnerable points. With the 2.
5G mobile saturating today’s market they have come up with something that is better, faster with more features to encourage the consumer to buy.Since the mobile phone became more accessible to the consumer with different packages, which were more affordable, the mobile phone companies have never looked back. When planning to make a product for the market it first has to do research to find out what the consumer wants and needs are. To meet customer needs, an organisation must develop the right products to satisfy them, charge the right price, get the goods to the right place (product is available when needed), and make the product known through promotion. Over the last year there has lots of advertising in the media about the new 3G mobile phone which has got people wondering what this product has that will improve their lifestyle.LifecycleTo successfully stay in touch with consumer trends the lifecycle issue has to be met. Lifecycle means the stages a product goes through from launch to obsolescence.
In the introduction stage, the product’s sales grow slowly, and the profit will be small or negative because of heavy promotion costs. All products have a limited life. By taking into consideration the lifecycle issues, an understanding as to why 3G are necessary can be gained. There are 5 stages in the lifecycle, which can be looked at:DevelopmentGrowthMaturitySaturationDeclineThe development stage can be a long process as market research can take time. The design can be changed time and time again until perfected. Costs can become very high and profits can be a long way off. Once this stage is over the product reaches the market.
Sales will begin to increase as it’s a brand new product and advertising should have reached the consumer. Profits begin to mount as development costs are recovered. Costs to make the 3G mobile phone will begin to decrease with greater volume of production.
Once initial demand is satisfied sales will increase at a slower rate and profits may start to decline. Competition could be part of the reason for slowing down sales. With the product reaching maturity there will be greater reliance on replacement sales. Once the market is saturated with the product, sales start to ‘peak off’ and profit declines even further. This is usually when a new product will start to appear through advertising onto the market or in the development stage. The final stage in the lifecycle is the decline stage when sales are in definite decline and profit margins are under severe pressure.The mobile phone companies would have been developing the new 3G mobile phone as the 2.5G were in the growth/maturity stage.
The reasons are, that modern technology is changing all the time, and if they had not developed a phone for the consumer that was quicker with more features, then other competitors would see a niche in the market and take a large proportion of the market which means reduction in profit.SegmentationMobile phone companies will look at the market and divide it into segments. These segments will contain roughly a group of customers with similar tastes or needs rather than the market as a whole. The part of the market represented by each segment will be reachable by a specific and different marketing mix from that used for other segments.
Another reason for market segmentation is that it enables them to develop a better understanding of customer needs and requirements. In doing this it can make fine adjustments to the marketing mix of each segment, enabling it to respond more quickly to any changes which need to take place. Socio-economic segmentation is one aspect as it looks at income, occupation and social class.The mobile phone companies will already have this information from customers already owning a mobile phone.
Each class of group has a certain pattern of behaviour, which support consumption patterns. Lifestyle segmentation looks at links with the family, income, occupation, culture and education. It deals with people and not the product and attempts to relate lifestyle patterns to purchasing behaviour. Organisations have paid more attention to lifestyles over recent years as people have different behaviour patterns and aspirations as they go through life, so change in what their needs and wants are.