Please read the directions illustrated below:
Question: Describe the buyers/customers and consumers/end users of your product (G2) and the factors that influence their purchasing decisions. Discuss how these factors will impact your marketing strategy.
In 400-450 word count, Describe the buyers/customers and consumers/end users of your product (G2) and the factors that influence their purchasing decisions. Discuss how these factors will impact your marketing strategy.
Please read the paper below as it describes a made up phone (G2) from T-mobile which is similar to the Iphone. Incorporate information from the paper and any other sites to answer the question above.
T-Mobile G2:
T-Mobile USA is the US operating entity of T-Mobile International AG, the mobile communications subsidiary of Deutsch Telekom AG. Headquartered in Bellevue, Washington, T-Mobile is a national provider of wireless voice, messaging, and data services capable of reaching over 268 million Americans. T-Mobile is also the provider of 36,000 jobs to working America (T-Mobile, 2008). The mission statement of T-Mobile is "To help our customers build richer relationships and networks with the people and things that matter to them most." The Marketing Department has been tasked with developing a marketing plan for T- Mobile’s newest phone, the G2.
Breaking the Barriers:
T-Mobile offers the new G2 action phone designed to compete with Apple’s iphone. Apple’s iphone was equipped with High-Speed Downlink Packet Access (HSDPA) (2008). The G2 will also offer HSPDA in conjunction with Universal Mobile Telecommunications System (UMS) networks. Working together these systems will allow the user to talk and browse at the same time. Using the G2 will allow the user to communicate globally using the support of Global Systems for Mobile Communications (GSM) and EDGE, a memory upgrade that has the potential to provide three times the capacity of GSM/GPRS networks. With these upgrades the G2 will also provide:
1) A touch screen with ability to scroll through selections using the touch of a finger. This feature will enable the user browse through the features seamlessly. Reading email, Short Message Service (SMS), or browsing the internet will also be enhanced. The touch screen will make changing from one call to conference calling easy by just tapping the selections on the screen.
2) The G2 will also have the capability to be voice activated. This will enable hands-free calling, notes dictation and random web searches, all activated by the user’s voice.
3) The applications used by the G2 are similar to ones used by computers. Email on the G2 works and looks just like on the user’s computer. Images and photos are seen next to the text and attachments remain in their original format. This action phone allows the user to rotate, zoom and pan in on images including PDF, Microsoft Work, Excel, and PowerPoint. The G2 also has a built in dictionary, and predictive text program.
4) The G2 web browser,” Tangeria,” is the fastest internet browser available on any phone service. Wi-Fi and 3-G make surfing the net fast and convenient. This browsing service hooks the user up to the fastest network available. Zoom features and a ‘favorites’ sites are available.
5) Music and music videos are available with the touch of a finger. Zoom in features are especially sharp and clear both in sound and visual quality. The user browses through a library of art and tunes. Television shows and movies are also available to watch on the screen. A stereo headset with a hi-performance microphone is included with the phone.
6) The G2 is equipped with GPS and maps to assist the user with getting directions, avoiding traffic jams, finding restaurants or conveniences while traveling. The G2 allows switching between views of Google map data and satellite images.
7) The calendar feature of the T-Mobile G2 syncs with the users personal computer. Features include the ability to Sync with Microsoft Outlook, or Entourage on a Mac. A schedule conflict will flag and meeting agendas are displayed. Syncing the phone to the user’s computer is easy allowing emails and contact lists to download quickly
8) YouTube application is a standard feature on the G2. YouTube opens right from the Homepage and bookmark features are available. Finding videos with a keyword search and emailing favorites to the user’s friends is done with the touch of a button.
9) The G2 has a built in camera and photo application software. The camera is easy to use and works with PC or Mac computers for displaying images. Sending photos is done with a simple tap and photos are tagged with information about whom, what and where they were taken. Zoom, rotate, dragging to reposition emailing to a friend or using the image as a screen cover are all features of G2.
10) Checking the stock market, getting the weather report and note-taking make the G2 a must have for the business executive. Instant access to the NY Stock Exchange for the days rates or trading within ones personal stock portfolio are options available the G2 owner. Checking the weather in any place around the world within a week is available with a tap of the finger. In addition, for those individuals unable to find a pen or forgot to bring a notepad to a meeting, do not worry, notes can be taken on the G2 and downloaded to the user’s PC when they get back to the office.
11) The calculator on T-Mobile’s G2 is a scientific calculator that is easy to use and has full memory capabilities. This calculator is sophisticated with dozens of functions for solving complex scientific and advanced mathematical problems.
Marketing for T-Mobile
T-Mobile emphasizes and prioritizes marketing. T-Mobile knows that through a successful marketing plan that new consumers are attracted and existing customers are maintained. T-Mobile noted the popularity of the iphone through consumer analysis and decided to provide a better upgraded phone for its customers. When producing the G2 T-Mobile wanted to include some of the qualities, functions, abilities and appearance of the iphone, with some new innovations and technological upgrades. Through market research T-Mobile identified the need to provide consumers with an option to AT&T’s iphone. Once the G2 phone is released it will provide customers the option to choose what carrier is more beneficial without sacrificing phone features. T-Mobile will market aggressively to as the competitor of the iphone. The G2 promotional campaign will emphasize the new upgrades and technological advancements. T-Mobile was able to improve on the shortcomings of the iphone and make adjustments to improve the functionality of the G2. T-Mobile’s targeted group will be those consumers that were looking for the next innovative phone with the latest technology that can offer them what the other carriers have been unable to offer. T-Mobile will aim at competing with the iphone. T-Mobile expects that by providing an option with better overall performance and advanced features it will attract more customers.
SWOTT Analysis:
Strengths:
• Strong brand reputation and presence: T-Mobile is a well known global telecommunication brand with presence in multiple countries across the world and is quite well known among consumers.
• Widespread penetration among mobile users via cellular business: The already existing customer base of T-Mobile provides a strong advantage to T-Mobile to roll out a new product among its current customers. G2 will have a ready target market in the form of existing T-Mobile subscribers.
• G2 carries a host of new and innovative features that are unique to the model. Such features have the capability to position T-Mobile on the forefront of innovation, ahead of Apple and other players
Weaknesses:
• G2 is designed to compete with the already established and well known Apple's iphone. T-Mobile's offering carry a high risk of being perceived as a copy of the iphone and has already lost the first mover advantage among iphone crazy customers.
• T-Mobile may not be able to compete with iphone in terms of pricing due to economies of scale enjoyed by Apple.
• The perception among consumers about the innovation capability and reliability of Apple may tilt the balance in favor of Apple.
Opportunities:
• If T-Mobile makes the sale of G2 exclusive to T-Mobile cell phone service users, the sale of 1 will boost the subscriber base of T-Mobile cell phone service.
• Sale of G2 phone can strongly boost the bottom line of the company by tapping the young, hip iphone crazy consumers located all across the world.
• Tremendous growth opportunities can be tapped in emerging markets with huge cell phone base like India and China.
Threats:
• Threat of competition from Apple's already established iphone: Apple can launch competitive strategies including price cuts to wipe off G2 from the marketplace. The economies of scale enjoyed by Apple can allow it to offer iphone at competitive prices as compared to T-Mobile's G2.
• T-Mobile also faces threats from cheaper Chinese phones that appear similar in look and feel to high end phones such as iphone.
• The failure of G2 may hurt the overall reputation of T-Mobile and will make future launches of new, innovative products difficult.
Trends:
• Growing cell phone usage in emerging markets like India and China and growing disposable income among consumers in these countries has forced cell phone companies like T-Mobile to focus strongly on such markets. Recession in developed nations like US is a cause of worry for cell phone companies and thus, more companies are diversifying into newer markets and product territories.
• Cell phone has now become an integrated device that is no longer used to just make and receive calls. Consumers have become crazy about design and features and seek innovation on a regular basis. Cell phone companies need to come up with new and innovative products to satisfy consumer wants.
Consumer Analysis
Demographics- 118
The composition of the potential target market for T-mobiles G2 phone would be located in developed nations such as, the US, Europe, and Asia. These nations have viable economies to provide opportunity for its citizens to afford the convenience and efficiency this phone provides. No specified age group has been targeted for the marketing of this product, the people who would be most interested in the G2 phone are socially active or business oriented individuals knowledgeable of new technology such as the internet and iPod’s. This group maintains a relatively stable lifestyle and enough disposable income to indulge in gadgets; they are multi-taskers who value instant gratification and using technology to complete tasks quickly.
Psychographics 160 (lifestyle, interests, opinions)
While strong consumer interests exist in the types of billing and service plans that converged services could provide, little interest in the actual technology requirement for special mobile phones has been shown (In-Stat). Therefore, potential buyers may not be willing to trade in their current product for another without dramatic improvements in monthly bills and services. 3G users were more likely to want additional applications, and a large number indicated they would change carriers for 3G service (In-Stat).
Behaviors (e.g. purchase behaviors)
Unlike many other mobile applications such as video and downloadable music, the target market for these services appears not to be high-spending, high-usage wireless customers. Those users, apparently, have already arranged their voice service plans and handsets to their liking. Instead, the more frugal customers who may be limiting their usage and spending to avoid unexpected bills are a more important market (In-Stat).
Geographical Considerations
Targeting developed national which have healthy economies is the main consideration for the promotion of the G2 phone, countries faced with political turmoil and poor fiscal health would not be in the target market for T-mobile. Countries with emerging economies and expanding populations would be potential markets, such as Japan, China South America, and India.
Industrial Analysis
With a memory capacity superior to current GSM/GPRS networks and the fastest available internet browsing, T-mobiles G2 phone would have an important competitive advantage over their competition upon introduction. If priced, correctly the market share for the new G2 phone could be substantial when taking into consideration those not already with other i-phone companies.
References:
Apple Inc. (2008). Technical Specifications. Retrieved November 1, 2008
In-Stat. (2008). Mobile Consumer. Retrieved November 1, 2008
-Mobile. (2008, November 2). Company Information. Retrieved November 2, 2008