Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ASSIGEMENT
(BATCH: 2008-10)
VINOD SAINI
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ACKNOWLEDGEMENT
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DECLARATION
We, hereby declare that the information presented in this report is correct to the
best of our knowledge and has been prepared on the basis of information gained,
collected and processed for utilizing our learning in the class of ‘Marketing of
service’. The report is an original work and has not been presented anywhere
before.
We have used secondary data in the report, but have provided proper references
at suitable places. We, as a group, undertake the responsibility that in case of any
issues relating to plagiarism issue being raised, we would be liable to consequent
action by the management.
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TABLE OF CONTENTS
4.1 Nokia 10
4.2 Motorola 11
4.3 Samsung 12
5.1 product 14
5.2 price 19
5.3 place 22
5.4 promotion 25
5.5 people 28
5.7 process 32
7 recommendation 37
8 bibliography 38
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INTRODUCTION
A mobile phone or mobile (also called cellphone and handphone as well as cell phone,
wireless phone, cellular phone, cellular device, cell, cellular telephone, mobile telephone
or cell telephone) is a long-range, electronic device used for mobile telecommunications
(mobile telephony, text messaging or data transmission) over a cellular network of
specialized base stations known as cell sites.
Most current mobile phones connect to a cellular network consisting of switching points
and base stations (cell sites) owned by a mobile network operator (the exception is
satellite phones, which are mobile but not cellular). In addition to the standard voice
function, current mobile phones may support many additional services, and
accessories, such as SMS for text messaging, email, packet switching for access to the
Internet, gaming, Bluetooth, infrared, camera with video recorder and MMS for sending
and receiving photos and video, MP3 player, radio and GPS.
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History of mobile phones
In Europe, radio telephony was first used on the first-class passenger trains between
Berlin and Hamburg in 1926. At the same time, radio telephony was introduced on
passenger airplanes for air traffic security. Later radio telephony was introduced on a
large scale in German tanks during the Second World War.
First generation
On April 3, 1973, Motorola employee Dr. Martin Cooper placed a call to Dr. Joel S.
Engel, head of research at AT&T's Bell Labs, while walking the streets of New York City
talking on the first Motorola DynaTAC prototype in front of reporters. Motorola has a
long history of making automotive radios, especially two-way radios for taxicabs and
police cruisers.
Second generation
In the 1990s, 'second generation' (2G) mobile phone systems such as GSM, IS-136
("TDMA"), iDEN and IS-95 ("CDMA") began to be introduced. In 1991 the first GSM
network (Radiolinja) opened in Finland. 2G phone systems were characterized by digital
circuit switched transmission and the introduction of advanced and fast phone-to-
network signaling.
Third generation
The first pre-commercial trial network with 3G was launched by NTT DoCoMo in Japan
in the Tokyo region in May 2001. NTT DoCoMo launched the first commercial 3G
network on October 1, 2001, using the WCDMA technology By the end of 2007 there
were 295 Million subscribers on 3G networks worldwide, which reflected 9% of the total
worldwide subscriber base.
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Seven elements of service marketing mix
These seven elements are often referred to as the marketing mix, which a marketer can
use to craft a marketing plan. The seven P’s model is most useful when marketing low
value consumer products. Industrial products, services, high value consumer products
require adjustments to this model. Services marketing must account for the unique
nature of services. Industrial or B2B marketing must account for the long term
contractual agreements that are typical in supply chain transactions
The service marketing mix comprises off the 7’p’s. These include:
Product
Price
Place
Promotion
People
Process
Physical evidence.
• Product:
The product aspects of marketing deal with the specifications of the actual goods or
services, and how it relates to the end-user's needs and wants. The scope of a product
generally includes supporting elements such as warranties, guarantees, and support.
Pricing:
This refers to the process of setting a price for a product, including discounts. The price
need not be monetary - it can simply be what is exchanged for the product or services,
e.g. time, energy, psychology or attention.
Promotion:
This includes advertising, sales promotion, publicity, and personal selling, branding and
refers to the various methods of promoting the product, brand, or company.
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Place
Refers to how the product gets to the customer; for example, point of sale placement or
retailing. This fourth P has also sometimes been called Place, referring to the channel
by which a product or services is sold (e.g. online vs. retail), which geographic region or
industry, to which segment (young adults, families, business people), etc.
People
An essential ingredient to any service provision is the use of appropriate staff and
people. Recruiting the right staff and training them appropriately in the delivery of their
service is essential if the organization wants to obtain a form of competitive advantage.
Consumers make judgments and deliver perceptions of the service based on the
employees they interact with. Staff should have the appropriate interpersonal skills,
aptititude, and service knowledge to provide the service that consumers are paying for.
Many British organisations aim to apply for the Investors In People accreditation, which
tells consumers that staff are taken care off by the company and they are trained to
certain standards.
Process
Refers to the systems used to assist the organization in delivering the service. Imagine
you walk into Burger King and you order a Whopper Meal and you get it delivered within
2 minutes. What was the process that allowed you to obtain an efficient service
delivery? Banks that send out Credit Cards automatically when their customer’s old one
has expired again require an efficient process to identify expiry dates and renewal. An
efficient service that replaces old credit cards will foster consumer loyalty and
confidence in the company.
Physical Evidence
Where is the service being delivered? Physical Evidence is the element of the service
mix which allows the consumer again to make judgments on the organization. If you
walk into a restaurant your expectations are of a clean, friendly environment. On an
aircraft if you travel first class you expect enough room to be able to lay down!
Physical evidence is an essential ingredient of the service mix, consumers will make
perceptions based on their sight of the service provision which will have an impact on
the organisations perceptual plan of the service.
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Nokia
Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment
manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this Finnish telecommunications
company is best known today for its leading range of mobile phones. Nokia also produces mobile
phone infrastructure and other telecommunications equipment for applications such as traditional
voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN
and a line of satellite receivers.
Nokia provides mobile communication equipment for every major market and protocol, including
GSM, CDMA, and WCDMA.
Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids.
Finnish Rubber Works established its factories in the beginning of 20th century nearby and began
using Nokia as its brand. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills
as well as Finnish Cable Works, a producer of telephone and telegraph cables. All three companies
were merged as Nokia Corporation in 1967. The name Nokia originated from the river which flowed
through the town of the same name (Nokia).
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MOTOROLA
The company is now known around the world for innovation and leadership
in wireless and broad band communications. Motorola's vision is of Seamless
Mobility, which the company defines as helping users get and stay connected
easily to the people, information, and entertainment that they want and
need. The company does this by designing and delivering "must have"
products ,"must do" experiences and powerful networks. Applying this vision
to mobile phones, Motorola has gone beyond just enabling users to make
voice calls or send text messages. Depending on the models chosen, users
can:
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satisfy the needs of all segments of the market. In India they are offering the
smallest and the lightest GSM handset in market.
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SAMSUNG
In 1993 it was decided that the development team should focus on improving
connectivity due to specific mountain topography of Korea. They found the optimal
length of a mobile phone antenna and developed a method of using gold to connect the
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point between the antenna and the communication circuits, thus significantly reducing
resistance and enabling steadier wave conductivity. They also developed the wave-
searching software that was specially designed for Korea's topography.
CDMA Era (1996-1998)
Samsung developed its first CDMA mobile phone in March 1996, to coincide with the
launch of CDMA service. The first digital handset, the SCH-100, was extra light and
slim, and enabled clear voice communication. Before long, Samsung became the leader
in the Personal Communications Service (PCS) market. It partnered with KTFreetel and
Hansel PCS to provide PCS phones. Its first PCS phone, the SCH-1100, entered the
market with innovative features, including a lightweight body, enhanced battery life, and
the ability to capture delicate sounds. For the PCS market, the company coined a new
slogan, "Strong in small sounds," to emphasize the mobile phone's capability to capture
delicate sounds.
By the end of 1997, one year after the CDMA service was first launched; Samsung had
achieved a 57% market share in the CDMA cellular market and 58% in the PCS market.
Also, in April 1997, it achieved sales of one million CDMA phone units.
Global market and GSM Era (1998-now)
To achieve further growth, Samsung had to penetrate the GSM market. The first GSM
model was the SGH-200, which was made for European customers. But it was not as
good as the company's CDMA phone. It was difficult to hurdle the high entry barrier,
which the then "Big 3" Nokia, Motorola, and Ericsson had built for years. The company's
next few models didn't attract Europeans, either. The development team realized that a
simple change in the circuit system wouldn't work in the European market. Thus, it
decided to look more closely at the customer's point of view. They found that Europeans
preferred geometric, balanced, and simple designs. Using this information, Samsung
adopted 'simple' as the design concept, then developed
Nokia: Product
Historically, the thinking was: a good product will sell itself. However there are no bad products
anymore in today's highly competitive markets. Plus there are many laws giving customers the
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right to send back products that he perceives as bad. Therefore the question on product has
become: does the organization create what its intended customers want? Define the
characteristics of your product or service that meets the needs of your customers.
Functionality:
• Quality
• Appearance
• Packaging
• Brand
• Service
• Support
• Warranty
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Some of the Products that Nokia offers to
Customers are:
Nokia 8800
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Nokia 6230i
Motorola : Product
The first element in the marketing mix is the product itself. If you create products that
customers want, the other parts of the mix can be designed to meet customer needs.
Motorola is a global leader in wireless and broadband communications technologies
and related electronic products. It has significant operations in the UK employing
approximately 2,400 people.
· Embedded systems
· Two-Way radios
· Networking Systems
· Mobile phones
Functionality:
· Attractive design
· Excellent call-quality
· Ease of use
· Value-added features including music player, games, camera, and video features
· High quality, reliable products.
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SAMSUNG: Product
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Nokia: - Price
How much are the intended customers willing to pay? Here we decide on a pricing strategy - do
not let it just happen! Even if you decide not to ask (enough) money for a product or service, you
must realize that this is a conscious decision and forms part of the pricing strategy. Although
competing on price is as old as mankind, the consumer is often still sensitive for price discounts
and special offers. Price has also an irrational side: something that is expensive must be good.
Permanently competing on price is for many companies not a very sensible approach.
List Price:
• Discounts
• Financing
• Leasing Options
• Allowances.
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Motorola :- Price
It is important to set prices at the correct level if customers are to be persuaded to buy.
Prices will be linked to the product life cycle - in the earliest 'launch' phase, prices will be
high to account for development costs. Later, as sales are increasing, costs are reduced
so prices can come down. Products that are technologically advanced may be sold at
premium, high, prices to reflect the initial research and development that has gone into
them.
Price is the one element of the marketing mix which creates sales revenue - all the
others are costs. For companies like Motorola, price is a key element in the marketing
mix. It is a critical selling point. 'Getting the price right' is a vital part of building
relationships with customers. As with other companies, prices charged by Motorola are
linked to the product life cycle. When a new product is launched prices will typically be
quite high. This is because a lot of product and marketer search has gone into
producing the product. It usually takes time for large numbers of consumers to purchase
new products. For example, 3G phones are only just beginning to sell in large
quantities. As a product matures and sales increase, it is possible to reduce costs.
Economies of scale are important. These come in when a firm is able to produce on a
large scale.
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SAMSUNG:- PRICE
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Nokia:- Place
Available at the right place, at the right time, in the right quantities? Some of the recent major
changes in business have come about by changing Place. Think of the Internet and mobile
telephones
Locations:
• Logistics
• Channel members
• Channel Motivation
• Market Coverage
• Service Levels
• Internet
• Accessibility
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Motorola:-Place
This means how the product actually gets to the customer and refers both to the place
where it is sold, and how it gets to that place. Distribution is the process of moving
goods from manufacturer to retailer or customer. Motorola distributes through
independent retailers such as Phones 4 U, network providers such as O2 and Three
and online, via the web site. Sometimes 'place' is closely linked to product. 3G phones,
for example, are mainly sold through 3G network providers.
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Samsung:-Place
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Nokia:-Promotion
How are the chosen target groups informed or educated about the organization and its
products? This includes all the weapons in the marketing armory - advertising, selling, sales
promotions, Public Relations, etc. While the other three P's have lost much of their meanings in
today's markets, Promotion has become the most important P to focus on.
Advertising:
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Mo
torola: -
Promotion
Promotion refers to the ways that a business communicates the existence and nature of
its products to its market. It includes paid for 'above-the-line' promotion such as media
advertising and 'below-the-line' promotion such as special offers and discounts. The
type of promotion is linked to product life cycle. For a new product, for example, it is
important to inform customers of its features.
Other types of promotion such as special offers and discounts are referred to as being
'below the line'. The type of promotion that is used depends on the stage in the product
life cycle. For example, when a new product is launched, such as the RAZR, it makes
sense to make people aware. Advertising will communicate the desirability, emotional
benefits and exclusive features of the product. Motorola works in close partnership to
promote its phones with retailers. Promotion costs are shared with retailers. The more
retailers sell - the more Motorola is able to help them.
Motorola Case Study page 5
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Samsung:-Promotion
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Nokia:-People
All people directly or indirectly involved in the consumption of a service are an important part of the extended
marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant
value to the total product or service offering.
Motorola: -People
An essential ingredient to any service provision is the use of appropriate staff and
people. Recruiting the right staff and training them appropriately in the delivery of their
service is essential if the organization wants to obtain a form of competitive advantage.
Consumers make judgments and deliver perceptions of the service based on the
employees they interact with. Staff should have the appropriate interpersonal skills,
attitude, and service knowledge to provide the service that consumers are paying for.
Many British organizations aim to apply for the Investors in People accreditation, which
tells consumers that staff is taken care of by the company and they are trained to
certain standards.
Samsung: - People
Samsung campaign, entitled ‘Samsung People’, gained international recognition when it
was awarded the FWA ‘Site of the Day’. In six weeks the site clocked up 44,798 visits,
with an average time of more than five minutes spent navigating through the site.
To get the word out, the company set up banner ads on Cleo, Cosmo, FHM and Zoo’s
websites, while ‘Samsung People’ sponsored niche publications Four Thousand, Three
Thousand and Two Thousand, Two Threads, Fuzzy and Oyster magazine newsletters.
At close of phase one the site competition had received over 4,000 entries.
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Nokia:- Physical evidence
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Motorola:- Physical evidence
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Samsung:- Physical evidence
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Nokia:-Process
Procedure, mechanisms and flow of activities by which services are consumed (customer management
processes) are an essential element of the marketing strategy Nokia has rapidly moved from functionally
oriented organization to a business process oriented mode, and our information systems have not
followed the change as fast as they should. To fill the gap, IM organization must learn and
implement working methods which enable the creation of business process oriented information
systems. To satisfy these business needs, Nokia has introduced a new development approach for
information systems
development. These
processes have been
created and tested
during the SPI.
Motorola: - process
The process itself only takes a few minutes. Then, within 24 hours, we'll send you an
email with instructions on how to program your motorola Mobile phone number into your
new phone.
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1. Is your phone programmed correctly?
2. Did you get the welcome text message?
3. Have you allowed 4 hours for your new phone to get set up on our network?
4. Do you have money in your account?
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COMPARATIVE SWOT ANALYSIS
Strength
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Nokia Motorola Samsung
➢ Responsiveness/adaptability
➢ Less of
to customers’ needs. market share ➢ Focus on mass
market instead of
➢ Decrease in sales in the niche market
United States.
Weaknesses
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Opportunity
Nokia Motorola Samsung
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Threats
10% in 2008.2
➢ Not keeping track of the
➢ Buying new trend in the market
➢ The Google phone will
behavior of
encourage new entrants consumers
currently does.
➢ Dilute brand by
services.
services.
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Recommendations
Nokia
➢ Expend mobile voice
Samsung
➢ Aggressively hawking fill tops and clamshell with polyphonic ring tones and
colour screen
Motorola
➢ The Communication Objective of Motorola is to improve brand image and
awareness. Also creating brand recall in customers mind through Color, Logo,
and its promotional program. So the person enhances to buy the product. For
achieving this objective Motorola using some tools of marketing
➢ The target market of Motorola is Urban and Rural area. The target audience of
Motorola is Youth. Motorola attract its target audience through
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BIBLIOGRAPHY
1. www.google.com
2. www.scribd.com
3. www.managementparadise.com
4. www.mbaclub .com
5. www.slideshare.com
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