Article Review on the Marketing Strategies Employed in Nokia Lumia 920
For this assignment, I have chosen the article on Nokia Lumia 920 by Walt Mossberg of the Wall Street Journal to gather marketing concepts and strategies which were applied. From the review, it was found that six marketing strategies and concepts were used by Nokia Lumia 920. These are as follows: 1) value pricing; 2) value networks; 3) selective distribution; 4) product experience; 5) marketing communications mix; 6) persuasive advertising; and 7) trade promotion tools.
1) Value Pricing – Value pricing is a strategy wherein a high-quality product is offered to customers at a fairly low price. This can be done through re-designing the company’s operations such that it becomes a low-cost producer without sacrificing cost. In the article, Nokia Lumia 920 was offered at half the price because it substituted raw materials with high cost for cheaper alternatives. For example, the construction of the phone was made of sturdy plastic instead of metal. This helped bring down the cost.
2) Value Networks – Value Network is a system of partnerships and alliances that a firm creates to source, augment and deliver its offerings (Kotler and Keller, 2012). In the article, Nokia partnered with Microsoft in order to enhance its software capabilities and strengthen its market survival.
3) Selective Distribution – Selective distribution is a channel alternative wherein there are only few intermediaries who carry a particular product. In this case, the company has more control over the market and less cost. In the article, Nokia Lumia 920 is bundled with a phone plan from AT&T and is not extensively distributed. This way, Nokia can control its cost of production and be able to avoid unsold units.
4) Product Experience – This is a marketing strategy which aims to lure potential buyers by giving them a feel or having them try the product for free. Selected Nokia Stores have sample units which customers can try and see for themselves how the unit feels and how fast it browses webpages.
5) Marketing Communications Mix – This is a combination of different strategies depending on the market and the budget. In the case of Nokia, they used print ads, sales promotions, publicity such as press conferences and events (product launching) to communicate the product into the market.
6) Persuasive Advertising – As the name connotes, this type of advertising aims to persuade customers into buying the product by offering a comparison or contrast against existing market competitors. For Lumia 920, their persuasive advertising revolves around their cheaper cost as compared to Apple and Samsung.
7) Trade Promotion Tools – This is a marketing strategy wherein the company offers something “extra”. For the initial launching of Lumia 920, the phone comes with a free wireless charging plate which would normally cost $49.
Reference:
Kotler, P. & Keller, K.L. (2012). Marketing Management. New Jersey: Prentice Hall.
Mossberg, Walt. Latest Lumia Smartphone: High Quality But It’s Heavy. Wall Street Journal. 27 Nov 2012. Retrieved from
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