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Mobile Phone Handset MarketingTweet

The market for mobile phone handsets globally is very competitive. ABI research say that global handset sales will reach 1.7 billion by 2015.

Manufacturer such as Nokia, Sony Ericson , Samsung and Apple are fighting for the share of this global market sales. Smartphones are one of the main reason why there has been a sudden surge in handset sales.

Research from Gartner ( Nov.10 2010) shows Nokia has the largest global market share with 28.2% a fall from the previous year of 36.7%. Independent manufacturers, especially those from China and India are slowly eating into the market share of brand leaders.

 

Table 1
Worldwide Mobile Terminal Sales to End Users in 3Q10 (Thousands of Units)

Company	3Q10  Units	3Q10 Market Share (%)	3Q09  Units	3Q09 Market Share (%)
Nokia	117,461.0	28.2	113,466.2	36.7
Samsung	71,671.8	17.2	60,627.7	19.6
LG	27,478.7	6.6	31,901.4	10.3
Apple	13,484.4	3.2	7,040.4	2.3
Research In Motion	11,908.3	2.9	8,522.7	2.8
Sony Ericsson	10,346.5	2.5	13,409.5	4.3
Motorola	8,961.4	2.1	13,912.8	4.5
HTC	6,494.3	1.6	2,659.5	0.9
ZTE	6,003.6	1.4	4,143.7	1.3
Huawei Technologies	5,478.1	1.3	3,339.7	1.1
Others	137,797.6	33.0	49,871.1	16.1
Total	417,085.7	100.0	308,894.7	100.0

Taken from Gartner Research

 

This article will focus on the main marketing strategies and principles behind the selling of mobile phone handsets.

Common marketing strategies used within the mobile phone handset industry.

Segmentation Strategies

Handset designed with different features are aimed at different target segments. Blackberry have been very successful in positioning their brand amongst the business segment. However, recently with the introduction of Blackberry chat (or BB chat as my students call it) The blackberry has now become popular amongst the teenage market.

Many mobile phone handset manufacturers are now incorporating social networking features as a key part of their targeting strategy. Smartphones now incorporate direct access to Facebook or Twitter. Lets be candidate, social networking is not just for teenagers, Facebook has 500 million users, and with broadband on phones now bundled within contract packages Smartphones are becoming more attractive to a wider target audience.

Design Strategies

Design of a product differentiates it from its competitors. Mobile phone handsets have changed over the number years. Phones are becoming as much as a fashion accessory as a communication device. Apple with the iPhone have innovated the way phones are designed. The shape of phones have also changed from standard handset, to slide phones, to flip and now to touch.

Features

A question I ask myself often is what is the core purpose of a mobile phone? Obviously it is a communication device. However, when customers now look for a particular handset the question of clarity of sound does not venture into their purchase equation. A mobile phone has become much more, a mini personal computer, a music device, a camera, an organiser a movie player. Handset manufacturer are adding increasingly more benefits to mobile phones and charging a little extra for these benefits. This is added value at its best.

Exclusive Deals

Some handset providers tie themselves to particular networks for a period of time. When the iPhone was first launched within the UK it was only available on the O2 network, allowing O2 to charge a premium for the monthly contract. The exclusive deal lasted for two years within the UK before other network providers were allowed to sell the iPhone. This created a rush for the anticipated phone, encouraging some users to change network providers and move to O2.

 

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Further reading:

Principles of Marketing by Philip Kotler

Principles of Marketing by Frances Brassington