The Marketing Environment

Case: Nokia Corporation



Overview
Wireless wizard Nokia has cast a spell on the mobile phone market. The company is the world's #1 maker of cell phones (ahead of such rivals as Motorola and Samsung, among others). Nokia is also aiming for the top of the nascent mobile Internet market. The company's products are divided primarily between four divisions: mobile phones (wireless voice and data devices for personal and business uses), multimedia (home satellite systems, and mobile gaming devices), networks (wireless switching and transmission equipment used in carrier networks), and enterprise solutions (wireless systems for businesses). Nokia combined its network equipment business with that of Siemens in 2007.



So let's start by talking about this subject first from the theoretical point of view, then implement it to Nokia corporation.



What is meant by 'the environment'?



The marketing environment consists of those factors outside the immediate control of the firm which influence its relationships with its target customers. Some environmental factors affect many firms and many industries and cannot be preempted or forestalled by the activities of any one organisation: such factors comprise the macro-environment.



Here are some examples:



*Macro-economic environment

*Political environment

*Social and cultural environment

*Demographic environment

*Technological factors



A company can only monitor its developments and prepare for the inevitability of changes.



Micro-environment is comprised of those factors external to a business that directly affect the running of that business and over which it can exert some control. Changes in this sector of the business environment are of major significance to the marketing department and are likely to influence marketing decisions at both the strategic and tactical levels. Five key factors can be indentified:



*Customers --> Those whom an organisation wishes to engage in exchange processes, usually by selling them something.

*Competitors --> Other organisations attempting to sell similar producs to meet similar customer needs.



Nokia case:

Biggest direct competitors of Nokia are Ericsson, Motorola and Samsung, however Nokia's sales and profit is more than all these 3's combined. Which gives Nokia the market share holder title.



*Suppliers --> Those who provide the inputs to enable a business to produce its products and services.



Nokia case:

Nokia's sourcing activities can be divided into two categories:
Direct sourcing takes care of the material supply for Nokia products, such as components, parts, packaging, contract manufacturing, software development, and research and development.
Indirect sourcing covers equipment such as office furniture and computers. It also includes services like catering, IT consultancy, and marketing which purchase for our own consumption.

Nokia has many suppliers all over the world and Nokia sets strict rules and code of conduct to these suppliers in order to accept them as suppliers for Nokia.



*Intermediaries --> Those who make an organisation's products available to their end-users.



Nokia case:
Nokia's mobile phones are virtually at every electronics retailing facility in the world, whether it's in uptown New York, USA or in the street of the middle-east. Nokia has the attention of the consumers, competitors and has a good hold of the market in their own industry.

*Stakeholders --> Individuals or groups who make a vested interest in the activities of the business.



Author: Hezha Sadek Muhammad



Sources:

Marketing, 2:nd edition (Hill & O'Sullivan 1999)



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