Nokia's Business Model Transformation

This assignment delves into Nokia's strategic business model transformation from a dominant player in the mobile phone market to a leading provider of network infrastructure solutions. It requires students to examine the reasons behind this shift, analyze the key challenges Nokia faced, evaluate its strategic choices and actions, and assess the overall impact of the transformation on the company's success.

Running head: Marketing consumer behavior
Marketing consumer behavior

Marketing consumer behavior
Table of Contents
Introduction.................................................................................................................................................3
Consumer behavior.....................................................................................................................................3
Importance of consumer behavior..............................................................................................................4
Description of organization.........................................................................................................................4
Consumer profile.........................................................................................................................................5
Primary market........................................................................................................................................6
Secondary market....................................................................................................................................7
Issue identification......................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
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Marketing consumer behavior
Introduction
The main aim of this task is to measure and analyze the significance of consumer
behavior. It explains how consumer behavior affects success and growth of the firm. The success
and growth of the firm depend on the potential consumers. The consumer is important success
factor to attain long-term mission and vision of the firm. Furthermore, Nokia has selected in the
report to explain the issues related to consumer behavior. Nokia is innovative technology
company who provides innovative products to the customers. In addition, it explains how
consumer behavior helps to resolve and handle the issues and barriers of the organization. It also
describes the primary and secondary market of Nokia.
Consumer behavior
Consumer behavior is the study of groups, individuals, organizations and all the activities
and operations associated with the purchase, disposal and use of goods and services, including
the consumer’s mental, emotional and behavioral responses that follow and precede these
activities and operations. The study of consumer behavior is considered with all the aspects of
purchasing behavior from pre-purchase activities and operations through to post-purchase
utilization, measurement, and disposal activities (Goel, Hofman, Lahaie, Pennock & Watts,
2010). In consumer behavior process, the consumer either directly or indirectly involves in the
purchasing decisions. In addition, customer relationship management helps to analyze and
measure the customer behavior. Consumer behavior is considered as the actions and decisions
that affect the activities of a consumer (De Mooij, 2010). Mainly, the selection process involved
in purchasing is based on reasoning and emotions. The study of consumer behavior is not only
help to explain and understand the past but also helps to estimate and predict the future. There
are several factors that influence the buying behavior of the consumers. Marketing campaigns
and advertisement play a greater and significant role to influence the purchasing decisions made
by customers (Mullen & Johnson, 2013). Furthermore, economic conditions and circumstances
also influence the activities and operations of the market. Along with this, consumer behavior is
also affected by various shades of dislikes, likes, morals, priorities, and values. Group influence
also affects the buying behavior of the consumers. The primary group includes classmates,
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Marketing consumer behavior
family members, and neighbors that have a direct impact on the buying decisions of a consumer.
The consumers analyze and evaluate their purchasing capacity and potential before making
effective decisions to purchase the products and services (Solomon, 2014).
Importance of consumer behavior
It is essential for marketers to measure and analyze consumer behavior. This helps
marketers to understand and investigate the way in which consumers behave so that they can sale
their products and services in the competitive market. The firm should understand and evaluate
consumer behavior in order to generate profitability and revenue. The study of consumer
behavior helps to fulfill the needs, requirements, and desires of the consumers (De Mooij &
Hofstede, 2011). Consumers play an integral role in marketing to beat the competitors in the
competitive market. It plays an integral role for the organization to make decisions regarding
whether a business and trade succeed or fails. Additionally, the firm can attain its long-term
operations and vision by analyzing and evaluating the needs, wants, and requirements of the
consumers (Darley, Blankson & Luethge, 2010). It also helps to increase and enhance the sales
and revenue of the firm. It also helps to focus marketing strategies and policies to maximize the
number of consumers in the competitive market. The organization can gather several types of
consumer behavior data by analyzing the sales information. They can easily decide what
products and services to produce or offer for the consumers. Apart from this, the firm can easily
identify and measure the tastes and preferences of the consumers in the global market. The
organization can easily set the appropriate prices of the products and services. In this way,
consumer behavior plays a significant role in the organization (Oliver, 2014).
Description of organization
Nokia is Finnish multinational communications, consumer electronics, and Information
Technology Company. It was incorporated in 1865 with its headquartered is located in Espoo,
Uusimaa, Finland. There are approx 101,000 employees employed in the organization. It is the
world 415th biggest firm evaluated by revenue. Nokia is also considered a major contributor to
the mobile technology industry. In today’s competitive world, the company is maximizing the
returns and revenue by producing new and innovative products (Nokia, 2017). Nokia is divided
into four groups such as multimedia, mobile phones, networks, and enterprise solutions. The
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Marketing consumer behavior
company operates and controls 15 manufacturing facilities in nine countries and maintains
development and research facilities in 12 countries. The firm focuses on the development of
technology and electronics sector. The firm developed and built the first international mobile
phone network in 1981. Fredrik Idestam, Eduard Polon, and Leo Mechelin are founders of the
organization. Nokia is the biggest leader in Finland and also is a significant employer in the
country working with enormous subcontractors and local partners. The organization operates and
manages its business activities and operations in approx 150 countries. In addition, the firm
protects the rights and interest of the shareholders with maintaining sustainability in the
environment as well as the organization. The association renders solutions, equipment and
services for network corporations and operators (Aspara, Lamberg, Laukia & Tikkanen, 2011).
Consumer profile
Most of the revenue and returns from the sale of the products and services come from the
primary target market. This market share maintains common attributes and behaviors and this
market is responsible for the highest volume of sales and profitability. The firm focuses on the
primary market to receive and obtain greatest returns and profitability (Cleveland, Papadopoulos
& Laroche, 2011). The primary market of Nokia includes upper class and middle-class people
who purchase Nokia smartphones. The secondary market includes future primary buyers who
purchase the products to sell at highest prices in the competitive market. The secondary market
also influences the primary market buyers. By taking into consideration of primary and
secondary market, the organization has been able to reach its desired goals and outputs. Nokia
uses different methods and techniques to identify and measure the primary and secondary market
(Drummond, Ensor & Ashford, 2010).
To know the target audience and group is a critical task. Thus, the firm has not been able
to recognize and understand the tastes and preferences of the target audience. Along with this,
advertisement and promotional campaigns are done by the organization to evaluate the
requirements of different types of customers in the global market. None of the company can
survive its business operations and activities without consumers. The firm divides its market on
the basis of demographic and behavioral (Weinstein & Cahill, 2014). The association uses four
types of market research methods and techniques to provide enormous advantages to the
customers in the world. It uses observation method, focus groups method, interview, and
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Marketing consumer behavior
questionnaire techniques to analyze the choices of the primary and secondary market. The
market research methods and techniques help to determine the nature and size of the target
market. Furthermore, SWOT analysis, porter five forces model, and pestle analysis are done by
the firm to evaluate and identify the strengths and weaknesses of a company or business (Jaman,
2012). In this way, various market research methods and techniques provide a lot of benefits to
the customers and it also reduces the risks and challenges of the market. It helps to maintain
proper communication and coordination in an organization. These methods and techniques
provide appropriate solutions for resolving the issues and hurdles of the firm. Apart from this,
the secondary market takes less time to resolve and handle the grievances and complaints of the
consumers (Wedel & Kamakura, 2012).
Primary market
Geographic On the basis of geographic basis, Nokia has
divided its market in different groups. Mostly,
the firm operates its business activities and
operations in India. There are various manners
through which a market can be geographically
divided. The organization divides its market
geographical areas such as by state, region,
city, country, and international region. The
company also operates its business in China,
Germany, and Finland.
Demographic The target age group of customers range from
30 to 50 years adults and older. Mostly older
prefer Nokia products. They buy Nokia phones
to gain long-term benefits in the market. The
organization also focuses on the income level
of people to introduce new products.
Psychographic In the psychographic segment, the company
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Marketing consumer behavior
divides its market on the basis of attitudes,
traits, interests, and lifestyles of potential
customers groups. The firm is launching
smartphones to attract youngsters in the
market.
Behavioral Behavioral segmentation is used by the
company to determine and analyze the demand
and preferences for a product and
advertisement content. Different consumers
maintain different behavior in their life. The
organization divides its market on the basis of
knowledge, and attitude of consumers in the
market.
Secondary market
Geographic For secondary market, the organization
operates its business activities and operations
in China, Mexico, Romania, India and South
Korea.
Demographic The secondary market of the company is
business travelers and students because Nokia
provides high battery backup so Nokia
smartphones are used by business travelers
during traveling. Suppliers also buy Nokia
products to sell at high prices in the global
market.
Psychographic The firm also focuses on hobbies, attitudes,
values, and interest of people to retain more
suppliers and student in the competitive
market.
Behavioral Nokia also conducts surveys and interviews to
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Marketing consumer behavior
analyze the behavior and tastes of people.
Issue identification
There are several issues are faced by the company related to the consumers. Mostly
consumers are not aware of windows phone because of the lack of a halo device. The company is
unable to fulfill the demand of the consumers in the competitive market. In addition, Samsung
suppressed Nokia cell phone sales effectively. Furthermore, Nokia phones did not have the front
camera. Nokia was slow to match Apple’s touchscreen technology. Nokia was an engineering
firm that needed more marketing savvy and research (Aspara, Lamberg, Laukia & Tikkanen,
2013). Apart from this, the firm has not been able to recognize the increasing importance of
software. The operating system of Nokia phone is poor and too buggy. All these issues can be
resolved and removed by taking consideration of consumer behavior. Consumer behavior study
depends on customer purchasing decision and design. The organization should focus on the
needs, tastes, and preferences of the consumers. The company should set the appropriate prices
to increase and enhance the number of customers. Consumers make different types of decisions
in everyday life. In today’s modern era, it has become significant for every organization to
evaluate and identify the needs, requirements, and choices of the customers. In addition,
consumer buying behavior theories must be used by the organization to attract young consumers
in the global world. Additionally, product, place, price, and promotion are four key factors of the
marketing mix that firm builds and develops to satisfy and fulfill the consumer’s needs. Along
with this, Nokia needs to collect feedback and reviews from customers to resolve and handle
issues and complaints of consumers. Moreover, advertisement and promotional strategies and
campaigns should be used by the company to retain the more people in the competitive world
(Tuunainen, Tuunanen & Piispanen, 2011).
Conclusion
On the above discussion, it has been evaluated that Consumer behavior plays a vital role
to increase the sales and returns of the firm. There are several factors that influence the consumer
behavior such as economic factors, social factors, technology, psychology and anthropology, and
geography. Consumer behavior helps in originating right and appropriate marketing strategy to
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Marketing consumer behavior
increase the demand of the products and services. Development and orientation of new products
can be possible by evaluating consumer behavior. The organization can easily evaluate income
level, opinion and emotions of consumers by measuring consumer behavior. The study of
consumer behavior helps to promote new products and goods. Nokia Company has been taken in
the report to explain the issues of consumer behavior in the global world. The firm focuses on the
behavior and tastes of consumers to make effective decisions related to the new products and
services. Furthermore, the primary and secondary market plays an integral role to expand and
explore the trading activities and operations of the firm.
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References
Aspara, J., Lamberg, J. A., Laukia, A., & Tikkanen, H. (2011). Strategic management of
business model transformation: lessons from Nokia. Management Decision, 49(4), 622-
647.
Aspara, J., Lamberg, J. A., Laukia, A., & Tikkanen, H. (2013). Corporate business model
transformation and inter-organizational cognition: The case of Nokia. Long Range
Planning, 46(6), 459-474.
Cleveland, M., Papadopoulos, N., & Laroche, M. (2011). Identity, demographics, and consumer
behaviors: International market segmentation across product categories. International
Marketing Review, 28(3), 244-266.
Darley, W. K., Blankson, C., & Luethge, D. J. (2010). Toward an integrated framework for
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De Mooij, M. (2010). Consumer behavior and culture: Consequences for global marketing and
advertising. Sage.
De Mooij, M., & Hofstede, G. (2011). Cross-cultural consumer behavior: A review of research
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Drummond, G., Ensor, J., & Ashford, R. (2010). Strategic marketing. Routledge.
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17486-17490.
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Jaman, M. (2012). Critical Analysis of Segmentation Strategy For Potential Product Launch-
Mapping The Customers. International Journal of Scientific & Technology
Research, 1(11), 62-65.
Mullen, B., & Johnson, C. (2013). The psychology of consumer behavior. Psychology Press.
Nokia.,(2017). Our history, retrieved on 4th January 2018< https://www.nokia.com/en_int/about-
us/who-we-are/our-history>
Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge.
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River, NJ: Prentice Hall.
Tuunainen, V. K., Tuunanen, T., & Piispanen, J. (2011, June). Mobile service platforms:
Comparing nokia ovi and apple app store with the iisin model. In Mobile Business
(ICMB), 2011 Tenth International Conference on (pp. 74-83). IEEE.
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological
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Weinstein, A., & Cahill, D. J. (2014). Lifestyle market segmentation. Routledge.
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