Nokia Product Strategy

PRODUCT STRATEGIES {draw:frame} When an organization introduces a product into a market they must ask themselves a number of questions. We must remember that marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying “Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer” For a more detailed analysis please refer to principles of marketing by P.Kotler: {draw:frame} Kotler suggested that a product should be viewed in three levels Core Product: What is the core benefit your product offers?. Customers who purchase a camera are buying more than just a camera they are purchasing memories. Augmented Product: What additional non-tangible benefits can you offer? Competition at this level is based around after sales service, warranties, delivery and so on. John Lewis a retail departmental store offers free five year guarantee on purchases of their television sets, this gives their `customers the additional benefit of ‘piece of mind’ over the five years should their purchase develop a fault. When placing a product within a market many factors and decisions have to be taken into consideration. These include: Product Quality – Quality has to consistent with other elements of the marketing mix. A premium based pricing strategy has to reflect the quality a product offers. Product Features – What features will you add that may increase the benefit offered to your target market? Will the organization use a discriminatory pricing policy for offering these additional benefits? Branding – One of the most important decisions a marketing manager can make is about branding. The value of brands in today’s environment is phenomenal. Brands have the power of instant sales; they convey a message of confidence, quality and reliability to their

References: http://www.learnmarketing.net/product.htm http://saunderslog.com/2008/02/17/nokias-evolving-product-strategy/ http://www.google.com http://www.wikipedia.com