Sunday, November 20, 2011

Chapter 8. Nokia Market Segmentation

Market Segmentation is a process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. It helps the marketer to distinguish what marketing mix will be more appealing for a particular group of consumers. Segmentation approach helps in more effective strategic planning, because it helps utilize necessary resources and power in order to reach the ultimate sales. 

Nokia is one of the few global corporations that has been successfully practicing multisegment targeting. Nokia segment groups are separated by various number of variables. 
Geographic Segmentation. In terms of geography company is using regional approach to be able to appeal to the local population and gain their respect and trust. Nokia keeps opening its flagship stores all over the Asian and Middle Eastern rural regions to be able to bring their customers all the latest innovations and provide them with quality support services. 

Demographic Segmentation. Nokia has many mobile and smartphone devices to appeal to all the age categories (from kids to seniors), all income categories, different family cycles (singles and married couple households), people of different religions and occupations. Unlike Apple Nokia has a distinct recognition of women as a major target market. Almost every serie of phones comes in pink or gold color. Nokia Roxo was designed for women and young teenage girls. "Treat her like a lady" - a logo that stated that Nokia wants women to have their own phone and not just use a unisex device.

Psycographic Segmentation. Nokia products indulge the tastes of people of working class and corporate  CEO's. Different models of mobile devices appeal to customers with various lifestyles. For example, Nokia N79 was marketed as a sports phone thanks to a wireless heart monitor implemented from Polar. The wireless Polar Bluetooth WearLink heart rate belt helps monitor a heart rate along with a speed and distance while you are enjoying your jog. 

Benefit Segmentation. Most of the Nokia consumers have strong loyalty to the companies products because they are able to find the best quality for their money. Among benefits Nokia has to offer great power life, various number of applications for different needs and wants, durable and practical design. 

Because of the large number of consumers Nokia has to keep its target market excited with new releases. In such multisegment strategy cannibalization occurs very often. To slow this process Nokia is trying  launch new products by the region rather then globally. 

Various segmentation strategies made Nokia into a global phone manufacturer. Ability to meet the expectations of different buyers is the ultimate goal for the company.

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