Nokia: Market Planning

An increase in competition has called for more innovativeness in business practice. Globalization, technological advancement, and other factor has led to a competitive business environment. To survive in a competitive environment, organizations have to be creative and innovative. Marketing is one of the most important roles in organizations. Marketing entails the process through which businesses identify customers, determine customer needs, communication, and strategy to be used in sales (Viardot 73). Marketing acts as a bridge between production and consumption. Marketing is very important to the success of any organization or product. The main objectives of marketing are usually to identify customers, gain customers, retain the customers and satisfy the customers. The roles require knowledge and creativity in marketing (Lancaster par 2). Failure in marketing hinders a product from being accepted in the market. The new competitive business environment has called for more effort in marketing. Today, successful firms are not just those that offer high-quality products but also that can market their products successfully.

One important concept in marketing is the S.T.P. process. S.T.P. process constitutes segmentation, targeting, and position. This process uses the important concepts in marketing to market an organizational product or service. S.T.P is starting place before a product is marketed (Williams par 3). It seeks to develop a marketing strategy that is based on knowledge and driven by creativity.

One of the industries that have experienced fast growth is the communication industry. Technological advancement has allowed communication companies to develop technologically advanced communication devices. Nokia is one of the most successful companies in communication. Nokia is known for its various phones. The company has a market share of about forty percentages in the mobile phone market. In addition, Nokia is a strong brand in mobile phones. Despite Nokia’s strong position in the market, the company is faced with high competition from emerging mobile phone companies. Increased in new entries in the mobile phone market are eating into Nokia’s market share and reduce it strength. Although increase in competition is a threat to Nokia’s market share, it provides opportunity to creativity. The company can use creativity in its product to increase its market share or protect itself from competition.

To maintain its leadership in mobile phone industry, Nokia use creativity to develop and launch new products in the market. As a way to maintain its leadership, Nokia has developed a new heavy duty mobile phone. The company wants to launch the product in the market but seek to make of the best use of S.T.P. The new heavy duty product has various characteristics that are unique to its. The new phone model is characterized with use of various technologies in mobile phone communication. The new model has a longer lasting battery, better signal reception, built in compass, water-dust-shock proof, and high sensitive FM radio with hands free functions. The product also has built in barometer, thermometer and added facilities for memory card. In addition, the product has quad band and flash light. To control price, the company chose to exclude some features from the new product. For example, Camera, high resolution screen, GPS, office features, polyphonic ringtones, internet connection facilities, Wi-Fi and high memory capabilities are excluded from the product.

To market the new product, Nokia should consider using S.T.P. process. Marketers at Nokia should first understand the market, identify the potential segments of the market, identify a target segment and finally position the product in the product in the target segment. Use of S.T.P process will be advantageous to Nokia. This process will offer the marketers an opportunity to evaluate the market fully before deciding on kind of marketing to use. Segmentation will allow the marketers to put effort on one or limited market segments.

Market for any product is usually made up of various segments. A market segment is part of overall market that that has similarity in characteristics. Market of a product constitutes of the totals consumers of a certain product. These consumers that make up a product’s market have varying characteristics buying trend (Williams par 5). The varying characteristics and different buying trend result from various factors. The factor includes geographic region, demographic factors, psychological factors and other factors. Due to the different factors in the market, it is possible to divide the market into various segments (Wedel & Kamakura 67-9).

Market segmentation entails dividing a heterogeneous market in to various homogeneous market segments. The various homogeneous market groups can be referred as market sub-markets or market segments. In general, market segmentation entails dividing the market into various homogeneous market segments (Wedel & Kamakura 76). The various groups of consumer that make up market segments have similarity in how they react to promotion, market communication, pricing and other factors in marketing mix. Market segments are characterized with very small variation in consumer behavior within a market segment. The homogeneity of a market segment allows for similar marker targeting and positioning to be used within the segments.

Mobile phones have a wide market. Technological advancement has allowed mobile phones to be cheaper and more available to majority of people. Mobile phone usage has also allowed introduction of more feature in mobile phone devices. Currently mobile phone communication constitutes the highest percentage of communication. Apart from being used for communication, more features in mobile phones have allowed the devices to be used for other roles. For the new model of mobile phone, Nokia has a broad market that it can consider. There has been increase of mobile phone manufacturers in the world. The increased competition in mobile phone industry requires mobile phone manufacturers to be creative on how they market their products. To be competitive, Nokia has to analyze the broad market to identify sub- markets where the new product can be marketed. The identified sub-markets should likewise be analyzed to identify the sub-market/s that is best for the new product.

The broad market for the new product can be divided into several sub-markets (Dibb & Simkin 49). Nokia can consider various segmentations to identify the market segments to market the new product. Through geographical segmentation, Nokia can subdivide the broad market according to geographical regions. For example, Nokia can decide to market the new product in some countries, continents, economic regions or other geographical regions. Nokia can also decide to market the product in either rural or urban regions.

Geographically, Nokia can consider marketing the new product in countries with population and high and high population growth. Asian countries, India and African countries can provide good market for the new product. India and Asian countries have high population and population growth. The high population in these countries will provide a good market for the new product. China and India have fast growth in telecommunication technological. This technological advancement provides a good foundation for a potential market for the new product. African countries provide potential market for the new product. Africa has high population growth. The high population growth provides high market potential for the new product.

Nokia can subdivide the market into rural and urban area. Although there is a general trend toward urban life, the number of people in the rural areas is still high. When targeted, the rural area can provide a high potential for the new product. In the urban areas, Nokia can identify market segments where it can market the new product.

Nokia can segment the potential market for the new product according to demographic factors. The company can identify the target market by subdividing the market according to age, gender, income level, family size and other demographical factors. Age provide an important segmentation factor for the new product. People of different age have varying needs and tastes. People of different age have differing occupation and usage of mobile phones. For this reason, people will be attracted to products that serve their need as well and satisfy their tastes. Male and female have difference in their need and tastes. Nokia can use the difference in need and tastes in different the genders to target the market. Income level has great influence to people’s buying habits. The income level influences the amount of money that a person is willing to spend on a certain product. Family has great influence to buying habits of an individual. Nokia can use family as a factor in segmenting the market for the new product.

Psychographic is an important factor for segmenting the market for the new product. Nokia can use interests, personality, attitude, value or lifestyle to identify the potential market for the new product (Lancaster par 5). The company can identify ways of life that require the features in the new product. Some features such as built in compass can attract users that are interested in tourism and hiking. On the other hand, Longer lasting battery can attract users are interested long outdoor activities. Personality can also be used to identify target market (Viardot 115). The design of the new product can be matched with personality of some individuals to identify the potential market segments. With increase in the number of models of mobile phones in the market, consumers are becoming more conscious of the value that they receive from products bought. Nokia can capitalize on the value provided by the features in the new product to identify a target market.

Although there are various market segments that Nokia can target for the new product, it is appropriate for Nokia to identify the most viable market segments. The most viable market segment is the one that has features that are best served by the new product (Kerin, Hartley & Rudelius 102).

Nokia can target Asian and African market for the product. The high population in Asian and African market will provide high potential for the product. Since the income level of this region is relatively low, the new product will be more appealing to the people. Most mobile phone users in these countries are less sophisticated. Since the new product is less sophisticated then it will be more appealing to consumers in these geographical regions. The new product is more appealing to consumer in rural regions. Feature in the new product, such as longer lasting battery, better signal reception and water and water proof make the product to endure the harsh conditions in the rural area. The heavy duty mobile phone has qualities that could be more appealing to male consumers.

Nokia can target individuals that are interested in outdoor activities, tourism, travel or hiking. The features in the new product make the phone to be able to endure outdoor, travel or hiking conditions. The longer lasting battery, water and dust proof feature and high reception capability make the phone appropriate for these activities. In addition, the built in compass, built in thermometer and flask light are appropriate for tourism, travelling, hiking and outdoor activities. The new product can also be targeted towards middle aged and older individuals. These age groups do not like a lot of sophistication. The new product avoids a lot of sophistication making it easy to learn and use.

After identifying the target market, Nokia should seek the best way to position the new product in the target market. Positioning entails creating an appealing identity or image of a product to the consumers. Successful positioning should capture the distinct feature of market segment and seek to show how a product can fulfill the distinct needs. For the new product, Nokia can use various market positioning techniques in the target markets.

Product differentiation is the most important element in the positioning of the new product (Kerin, Hartley & Rudelius 74). The new product is unique to other mobile phones. The unique qualities and value of the new product can be used in the target market segments. The features in the new product can be used for product differentiation. The features in a mobile phone are considered highly when people are buying mobile phones. People seek to buy mobile phones with features that serve them in their daily needs. The additional features such as FM radio, Quad band, build in thermometer and flask light can be used to market the new product. Design of the new product can be used in positioning. The design of the new product can be made to be unique and attractive. The design should take into consideration of the portability and different usage of the product. The design should also communicate the value of the mobile phone to the consumers. Reliability and durability of the new product can be used in positioning. The longer lasting battery can be used to communicate the durability and reliability of the new mobile phone. Considering that most mobile phone models have unreliable batteries, Nokia can use the longer lasting battery feature to differentiate its product. A warrant for reliability of the product can be offered to buyers.

Market communication is very important for positioning the new product to the target market (Lancaster par 6). Product promotion should be used to communicate the desired message to the target customers. Nokia should use various promotion techniques to communicate information on the new products. The company can advertise the new product in the media. Television and radio communication can offer many advantages to the company. The wide geographic coverage of radio and television communication can help to reach a wide coverage of the market. Bill board advertisement can be very useful in market communication of the new product. The advertisements in radio, television and billboards should be structured to communicate to the desired market segment. Personal selling should be used to enhance market communication. Nokia should ensure that the personnel selling the new product are competent to answer customer’s queries, show courtesy, be reliable and credible and be responsive to customers.

Nokia should ensure that the new product is available in the market. The company should set up many distributors in the target markets. The company can also use other Nokia distributors to avail the product to the market. By having many distributors for the new product, Nokia will be able make sure that the product is available to majority of potential customers.

Nokia should use price of the new product as a competitive advantage. The price for the new product should communicate the difference between the new mobile phone model and other model. A fair price should be set for the new product. Cost, prices of other models and intended profit margin should be considered in pricing strategy. A fair price for the new product should ensure that the model is appealing to low and middle earners.

S.T.P. process is very strong in marketing. Segmentation, targeting and positioning are the most important elements in marketing. Segmentation helps to identify market segments where a product can be marketed. After target market segments are identified, 4p marketing mix can be used to position the product in the target market. The new Nokia mobile phone model can be targeted in high populated Asian and African market. The feature in the product make is appropriate for rural population, travelers, tourist and people who participate in long out-door activities.


Dibb, Sally. & Simkin, Lyndon. The marketing casebook: cases and concepts. New York: Routledge, 1994.

Kerin, Roger. Hartley, Steven. & Rudelius, William. Marketing: The Core. London: McGraw-Hill, 2004.

Lancaster, Geoff. Customer and Marketing. 2007. Web.

Viardot, Eric. Successful marketing strategy for high-tech firms. New York: Artech House, 2004.

Wedel, Michel. & Kamakura, Wagner. Market segmentation: conceptual and methodological foundations. New York: Springer, 2000.

Williams, John. Segmentation, Targeting and Positioning. The GNOME Journal. 2006. Web.

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