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... f pricing for the Nokia 7210 is: - Customers: When pricing the Nokia 7210 it is very important that the company look at the target market in this case it is teenagers and young adults. Therefore the price o the Nokia 7210 cannot be extremely expensive as the target market will no be able to afford it. The Nokia 7210 price ranges from 299. 95 - 2 19. 99. This can be considered as quite expensive, Nokia have tried to put the price as low as possible considering all the faculties it has with it. The Samsung T 100, which also includes similar features as the Nokia 7210, has a price range from 329.
The phone was also put out in the Market in late October this was intended so that it would be a popular Christmas present so that parents can buy the phone for them. The Nokia 7210 sales went up extremely during the Christmas period bringing the phone to the early stages of growth in the product life cycle Http: 4 Relationship Between Price and Demand: Since the target market is teenagers and young adults Nokia cannot increase the price of the phones as the target market will not be able to afford the phone when the price increases. When the demand is high instead it is the stayed at a fixed price (however some mobile shops are able to sell them at a better price), generally especially on Nokia 1 s website the price of the mobile phone is fixed at a certain price when the phone is put out into the market. However once demand becomes low for the product (e.
g. because a new version of the phone is put out into the market) Nokia lower the prices of the phone in order to extend the product life cycle. Competitors: Nokia strategy is to avoid pricing wars for as much as possible this why competitors is not a factor that effects the Nokia decided on price for the Nokia 7210. Internal Influences Nokia Organisational Objectives: The objectives of Nokia is to provide their customers with lower priced handsets disposable handsets. The objective of this is to gain share and keep profitability high... This is so that Nokia gain more demand for their products.
There strategy is also with new technology enable products to become smaller and lighter, thereby reducing the amount of resources used in the manufacturing process. Http: 1. Cost of producing a product is very important factor that influences the price of a product. The Nokia 7210 price is considered to be quite expensive compared to earlier version of mobile phones.
However the Nokia 7210 comes with a range of new technologies which such as Internet, radio and java games. This mean that more resources are need when designing the phone making the price of the phone higher. Pricing Strategy Nokia 7210 mobile phone pricing strategy can be considered as rapid penetration. As prices are quite low and promotional expenditure is high. The reason for this is to gain share and keep profitability high and to gain economies of scale. (Increase output and bring down costs). Nokia also make money by proving expensive accessories and software for the phone.
For example with the Nokia 7210 customers have the opportunity to buy a camera to go with the phone so that they can buy for 80. The phone comes with 275 kb of space that customers can buy download games and other software for. This is available to buy on Nokia's website. Other accessories such as mobile tones, covers and logos are available to purchase on their website for the 7210.
Phone covers for the Nokia 7210 range from 26. Executives from both Nokia and Ericsson recently stated that neither organization plans to lower prices on their handsets to gain market share at the expense of profits. Both companies have acknowledged that their competitors have cut prices to gain market share and reduce an inventory glut. Neither executive, however, believes that the competition can continue with these price cuts for much longer.
Despite holding firm on its no price cutting pledge, Nokia still believes that it can maintain current market share and prices. Interestingly, Nokia recently reported profits at the high end of Wall Street expectations while one of its price cutting competitors, Motorola, reported dismal results. Motorola's CEO, Chris Galvin, admitted that when looking at Motorola's troubled stock price and newfound decline into quarterly losses, "the issue has largely been us. The changes that have to take place have to take place within Motorola. " No blaming the economy. Rather than cut prices, Nokia has begun shifting its attention to a different lower-end market segment that focuses on low cost, simple disposable phones in hopes of greater returns on investments.
Nokia says that when providing a pricing strategy on the Nokia 7210 they have to look at the target market. In this case it is teenagers and young adults. This why Nokia try lower the price of this phone as much as possible as young people and students will not be able to afford a phone of a high price. The Nokia 7210 price ranges from 299. 95 - 2 19. 99. This can be considered as quite expensive, Nokia have tried to put the price as low as possible considering all the faculties it has with it. The Samsung T 100, which also includes similar features as the Nokia 7210, has a price range from 329.
Nokia also provides the ability to exchange old phones for a more newer one. For example you can exchange a older Nokia phone for a Nokia 7210 for 50. Gradually when the Nokia 7210 has been in a market for a few month the price of the Nokia 7210 will slowly start to fall. Nokia main strategy is to keep price of handsets as low as possible and avoid pricing wars. Place Distribution Channel Direct Selling of the Nokia 7210 is available on the Internet. The Nokia 7210 is available to buy on Nokia website as well as a range of Internet mobile shops.
Companies such as phones 4 U and Dial a Phone. Companies such as Dial a phones and Phones 4 U are usually able to offer you the phone at a better price compared with retail outlets. Internet shopping is becoming more popular and more and more people especially the younger generation are purchasing products online. Nokia says that allowing customers to phones online also allows them to see other products and services that they offer for example downloading software and games.
Most of Nokia online customers are the younger generation as conducted from a recent survey from Nokia forum. Http: 1. The Nokia 7210 is also available through the retail outlets such as Carphone Warehouse and The Link etc. They purchase the products from Nokia then sell it to the customers. Recently Nokia have found a new distribution channel is super market such as Tesco. The more larger stores of Tesco now sell Nokia phones.
However these phone are usually the older versions of the Nokia phones such as 3210 and 3310. Before deciding which distribution channel Nokia will sell their phones to they look at a few factors such as: Customers: Nokia look at their customers buying habits and most of Nokia customers are businessmen and young people. For this reason Nokia have recently found a new distribution channels which is their own website as well as other mobile online shops. Many students buy products online as they enjoy doing so and like to "Surf" Internet pages. Many businessmen are usually too busy to go shopping for a mobile phone and find quicker and easier just to buy a product using the internet especially now as most internet shops provide next day delivery guarantee. The Nokia 7210 was advertised very early on Nokia website they also allowed customers to order the phone early so as soon as the phone went out in the market they would be the first one to receive it.
Currently the Nokia 7250 has already been advertised on Nokia's website. Product characteristics. Another factor that influences which channel of distribution Nokia choose is on the phone characteristics. Nokia 7210 has lots of features that customers may want to query about this why when customers buy the phone online they can also download extra information on how to use the ph...
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Research essay sample on Gain Market Share Product Life Cycle
