Review of Changing Perspectives in Marketing Planning - Essay Example

? Marketing Planning Contents Contents 2 Review of Changing Perspectives in Marketing Planning (LO 1) 3 An evaluation of Nokia’s capability for future marketing planning (LO 1.2) 3 Details of techniques for organisational auditing and analysis of external factors that may affect marketing planning (LO 1.3) 4 Techniques for Organisational Auditing 4 Analysis of External Factors Affecting Marketing Planning 5 A detailed organisational audit of Nokia post merger with Microsoft (LO 1.4) 5 An assessment of the main barriers to Nokia’s marketing planning (LO 2.1) 6 Recommendations and suggestions as to how Nokia can overcome these barriers (LO 2.2) 7 References 8 Review of Changing Perspectives in Marketing Planning (LO 1.1) The marketing planning techniques are subjected to modifications and changes subject to alterations in the external environment of the concern. Thus the marketing planning activities are required to follow a proper networking approach to be sustainable for the future. The marketing planning is thus required to first inspect the mission and vision objectives in the light of data obtained from changing external scenario through conducting marketing surveys. Use of information technology is also considered as an effective tool to gain potential data about changes in consumer preference patterns. With such data in hand analysis should be made pertaining to the internal strengths and weaknesses of the concern to help counter the external changes. Further the marketing plans for a company are required to encompass several strategic models to analyse the potential of the company in gaining on in changing market opportunities. Similarly the product, pricing, distribution and communication strategies need also be developed to effectively penetrate the consumer sphere. Finally owing to the changes being brought in the strategic marketing sphere the company needs to design an effective budget to help meet the needed changes. The business corporation is also required to render effective controls over the activities and modifications brought about in the managerial implications to render effectiveness in meeting changed objectives (Neves, 2003, p.9-10). An evaluation of Nokia’s capability for future marketing planning (LO 1.2) Nokia to compete in the international gaming market and thereby to counter competitive threat from companies like Sony and Nintendo came out with a product development venture. The product developed was named as N-Gage which penetrated the consumer gaming market through working on high quality gaming software. However the initial product was launched in the market by the company without conduct a pre-test of consumer and market ideologies. N-Gage in the initial stage gained a rapid market acceptance for having highly innovative features that at that time exceeded expectations of the consumers. However of late Nokia started facing criticisms from the consumer sphere in that they wanted a more customised gaming product that wound render larger number of gaming variants at highly affordable prices. Again, the N-Gage failed to satisfy the communication features of a phone for it required to be held in a lateral position to the face while talking which made the whole process quite cumbersome. Nokia honoured the criticisms from the consumers and thereby focused on designing and modifying the N-Gage into N-Gage QD. This product launched reflected a better battery life with a wide and bright screen. It also reflected better controls over the game by the consumer. However the initial failure of Nokia to gauge the needs and desires of the consumers led the other competitors to design and modify their own products and this led in enhancing the competitiveness of Nokia in the gaming market (Parasuraman, Grewal and Krishnan, 2009, p.6). Details of techniques for organisational auditing and analysis of external factors that may affect marketing planning (LO 1.3) Techniques for Organisational Auditing Organisational auditing is conducted by an auditor through some specific techniques or processes. In the first place the auditor aims at tracing the entire process of manufacturing or operations on which the audit is to be conducted. The second technique that is followed is an emancipation of the first tracing technique and involves process based audit through the designing of flowcharts or process based diagrams identifying the different steps. In another technique known as the department technique or method the auditor enhances the auditing focus by fixing its gaze to the activities of a specific functional unit or department. The fifth technique involves the use of elements based on auditing standard practices like ISO 9001. The auditing effectively planned also helps the auditor to plan a random or discovery based audit in the concern (Russell, 2005, p.82-83). Analysis of External Factors Affecting Marketing Planning An effective analysis of the external marketing environment of a company helps in identifying some key external factors that in turn tend to affect the marketing planning. The external factors can be grouped under different heads like political, economical, social, technological and other regulatory factors. Political factors pertaining to foreign countries tend to affect the international expansion opportunities of a company. Fluctuations in the economic scenario pertaining to fiscal and employment sectors also affect the operation of a company. Similarly changes in the preference patterns of the consumers with demographic and behavioural changes in the market potentially affect the marketing activities of the concern. Modifications in product development processes involve technological changes and can bring about industrial turmoil in the concern. Regulatory changes brought about in the industrial, economic and employment framework also potentially affects the marketing plans taken to be implemented (Lehmann and Winer, 2008, p.62-67). A detailed organisational audit of Nokia post merger with Microsoft (LO 1.4) Nokia owing to its faltering to gain a potential stand in the Smart Phone and Android market has endeavoured to gain a merger with Microsoft Corporation. This deal is held to help Nokia effectively employ Windows Operating Software in the Smart Phones developed by it. However an auditing conducted in Nokia based on the impacts of such strategic merger of it with Microsoft reflects that such an activity would amount to the loss of jobs by many people in different parts of the world where Nokia has its manufacturing branches. The auditing however reflects that both Nokia and Microsoft would potentially gain on the technological front. Nokia would tend to use Microsoft’s search engine technology while Microsoft would be benefitted from Nokia’s mapping software. The organizational audit thus reflected that Nokia armed through technological development opportunities aims to gain a potential stand in the Smartphone market. The market share of Nokia in the Smartphone market is found to potentially decline by around 10 percent from 38 percent in 2009 to around 28 percent in 2010. However again with loss of jobs of many people the merger of Nokia with Microsoft also is held to potentially enhance the chances of a clash of Nokia with Symbian, the company that used to render the operation systems to Nokia’s phones. Henceforth, the act of merger of Nokia with Microsoft is held to be a transition in the operational and business conduct of Nokia pertaining to its operation in the Smartphone market (BBC, 2011). An assessment of the main barriers to Nokia’s marketing planning (LO 2.1) Nokia’s stand in conducting a merger with Microsoft for gaining enhanced space in the Smartphone market took such a long time for the company feared that any change in its marketing and business policies would amount to losing its potential shareholders. Moreover the changes in consumer demand pertaining to the Smartphone market led the company face a drastic reduction in market shares in the western markets during 2011. The market shares came down to 10.8 percent in 2011 from 39.5 percent during 2010 in comparison to the growth in market shares of competitors like HTC and Samsung. A decline in the market share of Nokia in the Smartphone market also meant a similar reduction in the stocks of the company which also disturbed its marketing plans (Forbes, 2012). Thus factors like drastic changes in the demands of the consumers with actions of potential competitors and development of the technological interface becoming the main contributors that tend to affect the marketing planning activities of Nokia. Recommendations and suggestions as to how Nokia can overcome these barriers (LO 2.2) Nokia must work along certain recommendations to gain and sustain success in the changing market pertaining to cellular technology. Firstly, the company is required to conduct a thorough survey of both regional and off-shore markets to understand changes in consumer preferences and lifestyle and demographic patterns. This fact would help the company produce gadgets and render technology that would effectively coincide with consumer demands. Secondly, the company is also required to put an eye on the activities of its potential competitors in the mobile phone industry in order to sustain its position in the market. Thirdly, Nokia is also required to continually foster and grow on innovation to help produce developed products and mobile gadgets along with development of its distribution network to effectively reach the end consumer. Fourthly, the company management is also required to incorporate the views of the different stakeholders like employees, shareholders, supplier bodies, government and regulatory authorities to help gain on its strategic activities. References BBC News, 2011. Nokia and Microsoft form partnership [Online]. Available at: http://www.bbc.co.uk/news/business-12427680. [Accessed 7 July, 2012]. Forbes, 2012. Nokia Turnaround Like Watching A Horror Movie [Online]. Available at: http://www.forbes.com/sites/greatspeculations/2011/08/25/nokia-turnaround-like-watching-a-horror-movie/. [Accessed 7 July, 2012]. Lehmann, D., and Winer, R., 2008. Analysis For Marketing Planning, Volume 10. New Delh: Tata McGraw-Hill Education. Neves, M., 2003. Strategic Marketing Planning Process under a Network Approach. Available at: https://ifama.org/events/conferences/2003/cmsdocs/neves.PDF [Pdf]. [Accessed 7 July, 2012]. Parasuraman, A., Grewal, D., and Krishnan, R., 2009. Marketing Research, 2009 Ed. New Delhi: Dreamtech Press. Russell, J., 2005. The Asq Auditing Handbook: Principles, Implementation, and Use. United States of America: ASQ Quality Press. Read More