Tuesday, December 14, 2010

Mktg plan of Nokia - Phase 2 (4)

Market Targeting
One of the key elements of marketing strategy is to select its target market. A target market can be defined as a market or group of customers that the firm has decided to target its products or services through its marketing strategies. As Nokia is new in the SIM card market, it has to target its customers at the lower end as to increase its customer base and ultimately market share. Moreover, there is high usage rate in urban areas and among youngsters therefore Nokia needs to select the target market accordingly. They can also use undifferentiated marketing to target its selected market.

Market Positioning
It refers to position a firm’s product or service in customer’s mind so that customers can differentiate a firm’s product from other. In order to position product, a firm need to select its target segment and thereby position its product. Nokia has position its SIM-cards in the same manner as it had done to position its cell phones. It can position its SIM cards as better network coverage, cheaper call rates, good customer service and so on. This will help its customers to get emotionally connect to its service and thereby prefer Nokia SIM cards over its competitors.


Generic Strategy
The term generic strategy was introduced by Michael E. Porter to find ways how companies compete in segmented market and gains advantage over its competitors. The firm can achieve competitive advantage over other players by differentiating its product and service offerings. There are three key generic strategies that an organization can undergo to achieve competitive advantage over other firms. They are cost leadership, differentiation and focus.

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