Creating the right marketing mix: Motorola Case Study Summary

Creating the right marketing mix
Introduction
Motorola is a company known around the world for mobile, wireless and broadband communications. Its vision is of
'seamless mobility', helping users to get and stay connected to the people, information and entertainment that they want.
To do this it must first find out what its customers want, and then provide it. It does this through market research, and
then by creating an effective marketing mix - the combination of product, price, promotion and place that is often called
the '4 Ps'.
Product
Creating the right product is an essential first step in a successful marketing mix. Motorola's main products are:
* Mobile phones, which may allow users to share and listen to music, as well as all the usual functions.
* Broadband Internet services, including cable TV and video phones.
* Networking equipment allowing various technologies to interlink wirelessly.
* Communications and information solutions to business and government.
Its most familiar products are the mobile phones. Motorola produces phones that are attractive, well designed, easy to
use and have the additional features that customers want. These include music players, video and picture features and
Internet access. Certain parts of the market have particular requirements, so Motorola caters for them. For example, the
RAZR V3i is ultra thin, has a built-in still and video camera and state-of-the-art speaker sound.
Price
It is important to set prices at the correct level if customers are to be persuaded to buy. Prices will be linked to the
product life cycle - in the earliest 'launch' phase, prices will be high to account for development costs. Later, as sales are
increasing, costs are reduced so prices can come down. Products that are technologically advanced may be sold at
premium, high, prices to reflect the initial research and development that has gone into them.
Place
This means how the product actually gets to the customer and refers both to the place where it is sold, and how it gets
to that place. Distribution is the process of moving goods from manufacturer to retailer or customer. Motorola distributes
through independent retailers such as Phones 4 U, network providers such as O2 and Three and online, via the website.
Sometimes 'place' is closely linked to product. 3G phones, for example, are mainly sold through 3G network providers.
Promotion
Promotion refers to the ways that a business communicates the existence and nature of its products to its market. It
includes paid for 'above-the-line' promotion such as media advertising and 'below-the-line' promotion such as special
offers and discounts. The type of promotion is linked to product life cycle. For a new product, for example, it is important
to inform customers of its features.
Conclusion
Motorola has found out that what people want is to be able to communicate, and to access information and
entertainment, on the move. It has put together a successful marketing mix to ensure that customers get what they want.
Motorola Case Study Summary
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