Executive Summary: Statement of The Problem
Executive Summary: Statement of The Problem
Executive Summary: Statement of The Problem
OPERATIONAL DEFINITIONS:
The definitions committee of the American Marketing
Association has defined advertising as, “Any paid form of non-personal
presentation of idea, goods or service by an identified sponsor.”
NOKIA
From its inception, Nokia was in the communications business
as a manufacturer of paper- the original communications medium. Then
came technology with the founding of the Finnish Rubber Works at the
turn of the 20th century.
Rubber and Associated Chemicals were leading edge
technologies at that time. Another major technological change was the
expansion of electricity into homes and factories which led to the
establishment of the Finnish Cable Works in 1912 and, quite naturally, to
the manufacture of Cables for the telegraph industry and to support that
new fagled device – the telephone.
After operating for 50 years, an Electronics Department was
set up at the Cable Works in 1960 and this paved the way for a new era in
telecommunications. Nokia Corporation was formed in 1967 by the merger
of Nokia company – the original paper – making business – with the
Finnish Rubber Works and Finnish Cable Works.
Design has always been important at Nokia and today’s
mobile phones are regarded as a benchmark for others to follow. Take, for
example, multi-coloured, clip-on facias which turned mobiles into a
fashion item overnight.
But Nokia has always thought like that and back in the fashion conscious
1960’s when one branch of the corporation was a major rubber
manufacturer, it hit on the idea of making brightly coloured rubber boots
at a time when boots followed the Henry Ford principle – you could have
any colour, so long as it was black!
The 60’s, however, were more important as the start of
Nokia’s entry into the telecommunications market. A radio telephone was
developed in 1963 followed, in 1965, by data modems – long before such
items were even heard of by the general public.
In the 1980’s, everyone looked to micro computers as t he
next ‘big thing’ and Nokia was no exception as a major producer of
computers, monitors and T.V. sets. In those days, the prospect of High
Definition T.V., Satellite Connections and text services fuelled the
imagination of the fashion conscious homeowner.
In the background, however, changes were afoot. The world’s
first international cellular mobile telephone network, NMT, was introduced
in Scandinavia in1981 and Nokia made the first car phones for it. True
enough, there were ‘transportable’ mobile phones at the start of the 80’s
but they were heavy and huge. Nokia produced the original hand portable
in 1987 and phones have continued to shrink in inverse proportion to the
growth of the market ever since.
It took a technological breakthrough and a change in the
political climate to create the wire-free world people are increasingly
demanding today. The technology was the digital standard, GSM, which
could carry data in addition to high quality voice. In 1987, the political
goal was set to adopt GSM throughout Europe on July 1st 1991. Finland met
the deadline, thanks to Nokia and the operators.
Politics and technology have continued to shape the industry.
The 80’s and 90’s saw widespread deregulation which stimulated
competition and customer expectations. Nokia changed too and in 1992
Jorma Ollila, then President of Nokia Mobile Phones, was appointed to
head the entire Nokia group. The Corporation divested the non-core
operations and focused on telecommunications in the Digital Age. Few
people in the early 90’s would have thought that ‘going digital’ would
change things so much.
WIRELESS STANDARDS
ANALOG SERVICE:
A method of modulating radio signals so that they can carry
information such as voice or data. Analog cellular phones work like a FM
radio. The receiver and transmitter are tuned to the same frequency, and
the voice transmitted is varied within a small band to create a pattern that
the receiver reconstructs, amplifies and sends to a speaker. The drawback
of analog is the limitation on the number of channels that can be used.
DIGITAL SERVICE:
A method of encoding information using a binary code of 0’s
and 1’s. Most newer wireless phones and networks use digital technology.
In digital, the analog voice signal is converted into binary code and
transmitted as a series of on and off transmissions. One of digitals
drawbacks is that there are three digital wireless technologies, CDMA,
TDMA, and GSM. Phones that work with one technology may not work on
another.
TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS)
It is an update to TDMA IS-54, also called Digital AMPS or D-
AMPS. Released in 1994, TDMA IS-136 uses the frequency bands available
to the wireless network and divides them into time slots with each phone
user having access to one time slot at regular intervals. TDMA IS-136
exists in North America at both the 800 MHz and 1900 MHz bands. Major
US carriers using TDMA and AT & T wireless services, BELL SOUTH and
SOUTH WESTERN BELL.
CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS):
It is based on a form of spread spectrum technology that
separates voice signals by assigning them digital codes within the same
broad spectrum. CDMA type technology was used in military
communication systems because it was resistant to interface from enemy
signals.
The Qualcomm Corporation began developing a CDMA
wireless system in the late 1980’s that was accepted as a s tandard in
1993 and went into a operation by 1996. CDMA also exists at both the 800
MHz and 1900 MHz bands. The major US carriers using CDMA are AIR
TOUCH, BELL ATLANTIC / NYNEX, GTE, PRIMECO and SPRINT PCS.
GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS):
It is based on an improved version of TDMA technology. In
1982, the conference of European posts and Telecommunications (CEPT)
began the process of creating a digital cellular standard that would allow
users to roam from country to country in Europe. By 1987, the GSM
standard was created based on a hybrid of FDMA (Analog) and TDMA
(Digital) technologies. GSM engineers decided to use wider 200 KHz
channels instead of the 30 KHz channels that TDMA used, and instead of
having only 3 slots like TDMA, SM channels had 8 slots. This allowed for
fast bit rates and more natural-sounding voice- compression algorithms.
GSM is currently the only one of the three technologies that provides data
services such as email, fax, internet browsing, and intranet / LAN wireless
access, and it’s also the only service that permits users to place a call
from either North America or Europe. The GSM standard was accepted in
the US in 1995. GSM-1900 cellular systems have been operating in the US
since 1996, with the first network being in the Washington D.C. area.
Major carriers of GSM 1900 include omni point, Pacific Bell, Bell South,
Sprint Spectrum, Microcell, Western Wireless, Powertel and Aerial.
DIFFERENT TECHNOLOGY
BLUETOOTH TECHNOLOGY
It is a technology for wireless communication between
devices. It’s based on a lowcost short-range radio link. Every decorator
knows that cables and wires are unsightly and confusing. Bluetooth
connections allow wireless communication between devices within a
range of about 30 feet (10 metres). Unlike infrared, you don’t have to
point devices directly at each other, or even have both devices in the
same room. Blue tooth can initiate connections automatically with paired
devices, so you don’t even have to think about it. And no, you don’t have
to pay for a Bluetooth connection, no matter how much data you transfer.
When two devices share information, there are a few things
that have to be worked out: firstly, how they will physically connect
through how many wires? Or none at all? – And then what are the agreed
commands that will make sense to both devices? Bluetooth is an industry
standard that solves both of these issues cheaply, and using very little
battery power.
GPRS TECHNOLOGY:
General Packet Radio Service is a technology that allows your
phone to transfer data at moderate speeds. GPRS lets you send data
faster than over a GSM data network, and it’s also a lot more efficient. But
“data” sounds pretty vague.
To use GPRS, you need a phone that supports it, a subscription
from your network operator that supports GPRS, and the proper settings.
GPRS does what it says: it sends “packets” of data over a radio wave (on
GSM network). Packet switching works like a jigsaw puzzle: your data is
split into many pieces, then sent over the network and reassembled at the
other end. GPRS is just one of the ways to transport these jigsaw puzzles.
JAVA TECHNOLOGY:
JAVA is both a programming language and a software platform,
and its used to create and run applications for Nokia phones. With JAVA
applications, your phone can do more of the things you’d like it to do.
Downloading and installing applications is a relatively simple process (as
is uninstalling them), and there is a wide range of applications available.
JAVA was originally developed by Sun Microsystems.
Enhancements and standardization of the JAVA platforms are conducted
by the JAVA Community Process (JCP), in which Nokia takes on active role
together with sun and other members. There are two parts to JAVA
technology: a programming language, and an environment in which those
commands can be executed. You need an environment where the
language means something, so JAVA brings its own environment along.
JAVA enabled Nokia phones – most Nokia models on the market now-
contain a JAVA Virtual Machine, which is ready to run applications written
in JAVA. This makes using new applications easy, because you usually
don’t have to configure, load, or install anything else.
MMS TECHNOLOGY:
MMS stands for Multimedia Messaging Service, a technology
that allows you to create, send and receive text messages that also
include an image, audio, and / or video clips. MMS messages are sent
from one mobile phone to another, or to an email address. Multimedia
Messaging enriches your mobile messages in much the same way as
inserting photos or changing fonts and colours does in email – it’s both
useful and expressive.
MMS messages are sometimes considered equivalent to so –
called “Picture Messaging”, popularized by the recent imaging phones
boom, but other uses of the technology do exist.
You don’t need to have an imaging phone to send and receive
MMS messages, just an MMS-enabled mobile phone, an operator
management that supports the service, and the correct settings on your
handset. Of course, an imaging phone gives you the option of creating
and passing on your original images.
An MMS message is a multimedia presentation in a single
entry, unlike an email with attachments, making it easier to create and
simpler to deliver than an email with attachments. MMS is a scalable
technology, which means it’s suitable for most types of mobile phones.
And MMS is compatible with fixed email addresses, so it is possible to
criss-cross back and forth over the mobile-PC border.
MOBILE BROWSING TECHNOLOGY:
A mobile browser is simply any program that lets you access
and read content on a network from a mobile device – usually the Internet
or some other mobile network service. As more phones on the market
boast high network connection speeds and colour screens, mobile
browsing is becoming more common (and a lot better looking).
Many new Nokia models come with an integrated XHTML or
even HTML mobile browser, giving you the chance to surf without being
chained to a desktop computer. Today’s mobile browsers give you richer
colours and faster browsing than the original mobile browsers, and most
importantly, a way to access the web at your finger tips. Considering the
no-frills WAP sites that started off mobile browsing, the technology has
come a long way.
In order to browse with a mobile phone, you need to have a
phone with a browser (either one that’s built in or downloaded), a
subscription from your network operator to a data service (GSM data,
GPRS, EDGE, WCDMA, etc) and the correct settings on your phone. Then
its up to other companies and individuals to build the sites and services
you can browse.
MOBILE VIDEO TECHNOLOGY:
Mobile video means both creating your own video clips and
watching content created by others. There are two types of mobile video
content services: downloadable and streaming. You can download, store
and play back videos on your mobile device. Or, you can stream video
content, which is a better option for viewing longer clips because data
isn’t stored on your phone. You can also tune in to live video feeds using
streaming. We can
Use a phone equipped with a camera to record your own clips, then
send them (by email, MMS or over a wireless connection using
Bluetooth technology or infrared).
Watch streamed news, sports, music videos, or movie trailers.
Watch live camera views such as road conditions, concerts, parties, etc.
Subscribe to MMS videos and download short video content such as
daily news, weather or cartoons.
Store your favorite videos on a Multimedia Card (MMC) card – longer
clips can fit on a MMC card as long as it has enough capacity.
Unless the video you want to watch is already stored on an
MMC card, your phone must be able to connect to the internet in order to
access to video files. This means you need a phone with a GPRS, EDGE,
WCDMA or other network connection, and the correct settings. If you’re
interested in streaming video, look for a phone that supports EDGE or
CDMA.
REVIEW OF LITERATURE
ADVERTISING:
Advertising is any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor. It is paid
communication because the advertiser has to pay for the space or time in
which his advertisement appears.
Advertisers include business firms but also museums,
charitable organizations, and government agencies that advertise to
various target publics. Advertisements are a cost effective way to
disseminate messages, whether to build brand preference or to educate a
nation’s people.
Organizations handle their advertising in different ways. In
small companies, someone handles advertising in the sales or marketing
departments, who works with an advertising agency. A large company will
often set up its own advertising department, whose manager reports to
the Vice President of marketing. The advertising department’s job is to
develop the total budget, and handle direct-mail advertising, dealer
displays and other forms of advertising not ordinarily performed by the
agency. Most companies use an outside advertising agency to help them
create advertising campaigns and to select and purchase media. Global
companies that use a large number of ad agencies located in different
countries and serving different divisions have suffered from uncoordinated
advertising and image diffusion. Advertising agencies need to redefine
themselves as communication companies and assist clients in improving
their overall communication effectiveness.
Importance of Advertising
1. To create widespread visibility in the market and access those
pockets which are not approachable by the sales force. Quoting a
customer, “Make the customers come to you rather than trying to
approach all the potential customers.”
2. As a symbol of sound financial position of the company and also to
make the statement that the company is here to stay!
3. To aid in easy brand recall and also create a top of mind awareness
of the brand.
4. To make maximum potential customers aware of the new offerings
and schemes of the company and initiate enquiries about the same.
5. To establish a strong brand image in the market so as to give the
company an edge over its competitors.
Advertising in India
Indian Advertising starts with the hawkers calling out their
wares right from the days when cities and markets first began
Shop front signage’s
From street side sellers to press ads
The first trademarks
Handbills distributed separately from the products
ATTENTION
It can be viewed as an information filter – a screening
mechanism that controls the quantity and nature of information any
individual receives. Getting a consumer’s attention is not easy. An
individual, overtly or accidentally, avoids exposure to stimuli.
The advertising environment is truly “cluttered”; most major
magazines have almost one-half of their pages carrying advertisements,
the other half carrying editorial matter. Amid all this advertising, it is not
easy to create an advertisement that stands out enough to get noticed,
processed, and remembered. The effectiveness of ads is reduced not only
by the higher levels of clutter in general, but even more significantly by
the proximity of ads for competing brands from the same product
category.
The situation is made worse in the broadcast media, especially
television. Viewers have always had the freedom to do things while a
program is being shown; including leaving the room mentally and
physically, but the use of remote control devices has made channel-
switching endemic. Television advertisers today have to cope with the
phenomena of zapping and zipping.
ADVERTISING EFFECTIVENESS:
Advertising effectiveness consists in the degree of achievement of the
objectives set by an advertiser in consultation with advertising agency
working on the account. It may also take the form of an increase in the
sales of market share or penetration into a new market segment.
ADVERTISING STRATEGIES:
Strategy provides the link between advertising objectives and plans and
paves the ground for their implementation. It can be instrumental in
prioritizing various objectives, taking into account the attitudinal
framework as well as corporate and marketing goals, and the market
situations and characteristics.
Advertising strategy is based on consideration such as the following:
Advertising objectives.
Advertising budgets.
Selection of target audiences.
Advertising message.
Media decision.
Media space decisions.
Company’s standing and it s strength and weaknesses.
Product history and its life cycle stage.
Positioning of the product as indicated by perceptual mapping.
Existing and anticipated competition.
BRAND PATRONAGE:
Most of the time, an advertisers (seller) tries to build a brand privilege or
patronage for his products or service. A seller has a brand privilege if
buyers exhibit brand insistence, brand loyalty, or brand preference
towards his product or service. By means of advertising or persuasive
mass communication, seller tries to move prospective buyers and existing
buyer from lower level to higher level of brand attitude of customers –
from brand ignorance to brand awareness, or from brand acceptance to
brand preference, loyalty, and insistence
RESEARCH METHODOLOGY
RESEARCH APPROACH
The research for this study is a Descriptive Research.
A Descriptive Research is a type of conclusive research, which has its
major objective as the description or something, usually market
characteristics or functions. It is preplanned and structured.
Under this approach a Cross-Sectional study is conducted in which one
sample of respondents is drawn from the target population and
information is obtained from this sample one.
This study is based on Descriptive Research approach comprises the
following methods;
1. Secondary Data:
Secondary Data refers to that which is compiled by some other than the
other researcher for purpose not directly related to the research. These
are readily available for processing. This type of data relate to past period.
The two main types of secondary data are Internal and External data.
The sources used for such data types are as follows:
a. Internal: the sources include company annual reports bulletins,
research reports, etc.
b. External: the sources include:
Published materials such as periodicals and books like business
periodicals, marketing journals, general business and trade magazines,
etc.
Computerized databases such as internet databases and off-line
databases (information available on Diskettes and CD-ROM disks).
2. Primary Data:
Primary Data refers to the data gathered for a specific purpose or for a
specific research project. These data gives latest information. This type of
data is obtained from original sources. In this study, primary data is
collected through Questionnaire Method.
SAMPLING PLAN:
1. Sampling Unit – Who is to be surveyed:
The sampling unit consists of college students owning Nokia Cellular
Phones for analyzing the advertising effectiveness on consumers.
2. Sampling Procedure – How should the respondents be chosen:
The sampling technique chosen are Simple Random Sampling and
Stratified Random Sampling , in which a sample is drawn probabilistically
from each group or strata i.e. College Students owing Nokia Cellular
Phones.
3. Sample Size – How many respondents to be surveyed:
Due to time and other constraints, the size is 100 respondents. These
samples of respondents are chosen randomly.
ULTIMATE CONSUMER:
Ultimate Consumers refers to those individuals who buy goods and
services for final use or consumption.
DATA ANALYSIS:
The data collected are tabulated and classified as required. Statistical
techniques such as Frequency Distribution, Central Tendency,
Percentages, etc., are used for analysis of primary data. Conclusions are
drawn based on the analysis and findings of primary data.
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STRATEGIES OF NOKIA