Introduction
Marketing is the process by which an organization determines the products that it will offer to customers and the strategies that will be used so that the organization achieves higher sales. The objective of marketing is to create value for customers. Many companies offer their products in different countries and it is therefore important for them to market their products so as to attain competitive advantage. Marketing strategy leads to customer satisfaction. Marketing processes focuses on the customers and their needs so that the highest level of satisfaction is achieved. Marketing segmentation allows an organization to define the different subsets in the market and determine those that are likely to purchase the product and their needs. Differentiation and positioning allows an organization to establish a superior customer base. A marketing mix helps the management in implementing the marketing strategy. NOKIA is a corporation that is involved in manufacture of electronics especially mobile devices that are sold in about one hundred and twenty countries. This paper will seek to develop a marketing strategy that NOKIA will use in its new model of Wireless headphones.
The Product
Due to demand from customers, NOKIA has come up with a new model of wireless headphones that are light in weight, comfortable, has a long life battery and use Bluetooth to connect with the phone. Numerous researches have led to development of the product that is expected to meet the needs of the customers. The fact that the product does not target all consumers of Nokia products call for the company to come up with marketing strategies that will help it return all its investment in the product as fast as possible. This requires the company to come up with viable market segmentation and use the most relevant market mix in selling the product.
Segmentation of Market
Organizations increase their sales volume by coming up with the relevant market segmentation. Based on the nature of products sold and level of technology within a specific region, an organization can be able to segment its market. This will help in ensuring that the company has been able to fully exploit the identified market segment. Currently, almost everybody owns a mobile phone. However, not all people with mobile phones would like to have the headphones. There is a common attitude among youths in urban areas to listen to music through their phones. Availability of music which can be downloaded via phone has led to an increase in need for headphones among people living in urban areas. As the product is being introduced in the market the company needs to first concentrate its sales in Nairobi, Kenya before embarking on selling the headphones in other urban areas. Through this, they will be able to ascertain its performance (Miles 2003, p.46). This will help them in coming up with strategies to use when venturing in the other segments. Demand for head phones among youths in rural areas is high. However, this group of youths has limited knowledge on Bluetooth technology. This makes it not a viable segment to address at the moment.
Selection of Target Market
The specific groups of individuals that are targeted in sale of the product define the target market. Selection of target market begin by evaluating all the segments identified using the factors above section. Other factors that are considered include competition in the different segments, sizes of segments in different places, customer loyalty of the brand, sales potential, expected profit margins in different segments, and others. The groups with high possibility of providing good returns on investment are chosen. Demand for headphones is greatly inclined to the youths. This is because it is the group that mostly uses mobile p-hones in listening and watching videos. The old; despite them using mobile phones do not like listening to music through their phones. There have been decreases in mobile phone prices while at the same time their features being improved. This implies that most of the youths currently can afford to buy mobile phones. In its sale of the headphones, Nokia Company will target the youths as this is the main group of head phone consumers that has the potential of helping the company benefit from its investment.
Differentiation and Positioning
Differentiation and positioning helps the organization in standing out among its competitors. This is the methods used by organizations to help them identify with their consumers. In the marketing process, differentiation and positioning entails strategy that helps in matching the marketing message with the feelings and desires of the target consumers. This includes convincing the target customers on how the product will help in addressing their needs effectively than all other available products (Rakesh 2005, p.53). It calls for the organization to conduct a market analysis to identify consumer needs so as to come up with clear differentiation strategies. The product will be advertised in a way that will make it stand out above all others. Currently, there are other head phones available in the market. However, most of these headphones are not wireless. The head phones are criticized as they become useless when the wire is cut. Some of the available headphones that use Bluetooth technology are big and their batteries are not durable. It requires one to keep on changing the battery so as to use them. To position its product and help it stand out from other products, Nokia Company will conduct a consumer education. Through this, the company will be able to inform the youths about the numerous features included in the headphones and how to get the best from the product. The fact that the head phones are not bulk and have durable batteries make them more attractive to the youths who would like to have headphones that serve them for a longer time. Its packaging of the headphones will be different from others so as to help youths easily identify them. The company aims at establishing a sample market that it will issue with the headphones and use the group to get consumer feedback about the performance of the product.
Marketing Objectives
The main objective of marketing here is to increase sales that will in turn increase revenue. So as to meet this major objective all forms of interaction will be used so that the target groups are aware of the availability of the product. This will be achieved through advertising with customers, press, and partners. This will increase sales because many individuals will know of the existence of the product. The target audience will be informed of the new features of the product that meet their needs. The benefits of the product will also be given to the customers. This will increase the competitive advantage of the product over other products offering similar products. Another objective is to decrease the resistance of potential customers in buying the product. All the objectives will be clear, measurable, and there will be a limit as to when they should be achieved. Focus on the marketing objectives will lead to increased sales (Miles 2003, p.52).
Marketing Mix
Marketing mix is one of the techniques used by organizations in increasing their sales volume. One of the marketing mix techniques used is the 4Ps marketing mix strategy. The four Ps stand for product, price, place and promotion. In bid to fully exploit the target market, Nokia Company will use the 4Ps marketing mix strategy. The company will conduct a market study to identify some of the needs within its target customers. In so doing, it will determine if its product meets or satisfies all the needs. If not, the company will be able to improve on the subsequent headphones it will produce so as to ensure that they effectively meet consumer needs. As youths do not have regular sources of income, the company plans to ensure that while features included in the headphones helps in addressing customer needs, they will not be so expensive to an extent that the target market will not afford them. Design of the product will also be made more attractive with respect to color and model compared to other headphones already in the market. For easy access of the product, Nokia Company will ensure that it has stocked the product in all shops that deal with Nokia products as well as in other electronic shops. This will save consumers from having to go around looking for the headphones. To overcome competition, the company will also use a sales force in distributing the product in the market (Rakesh 2005, p.55).
Based on the nature of the target market, the company has ensured that the product has not been manufactured with expensive materials though it has ensured on the quality. To ensure that the company makes substantial sales, the product will be introduced in the market at $10. This will be consistent with the substitute headphones offered by competitors. To make the target market aware of the product, the company aims at using billboards and television as some of the promotional media. Currently a lot of youths visit social networks such as facebook and twitter. The company also intends to use these networks in advertising the product.
Cost of Marketing Strategy and return on Investment
To launch the product in the market, the company expects to spend approximately $1,800, 0000. The company expects to spend $1, 000,000 in production of the headphones, $200,000 in promotion through all the indicated media, $400,000 in distribution and $200,000 as license fee. As the product is new in the market, the company will take a period of three years before getting returns on its investment. The first year being the period of familiarizing the product to its customers will not see a large volume of sales. It is expected that the sales volume will range from 60, 000 pieces of headphones. In the second year, people will have understood about the product and gotten information from others who will have used it as a result, the sales volume is expected to increase in the second year to approximately 100,0000 pieces. By the end of the third year, sales volume is expected to be over 220,000 pieces.
Conclusion
Marketing will help the organization attract more customers and increase sales. The new wireless headphones that NOKIA is offering will meet the needs of the customers. Segmentation of the market will help in identifying those groups that will buy the product most and therefore concentrate on such groups. Some of the factors that will be used in segmenting include age, gender, geographical regions, and others. After segmentation, target markets will be identified. These are the markets that will bring the best return on investment. The product has been designed with the needs of individuals in the target groups in mind. Differentiation and positioning will make the product unique and help the company in building a strong customer base. Some of the objectives of marketing include increasing product awareness among customers and informing the customers of the unique features in the new product. Product, price, place, and promotion make the elements of the market mix. The cost of strategy will be recovered within a year.
Reference
Miles, R., 2003. Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.
Rakesh, J. M., 2005. International Marketing. New York: Oxford University Press.