Presentation on theme: "International Marketing « Mobile Phones in the European Union » January 2007."— Presentation transcript:
International Marketing « Mobile Phones in the European Union » January 2007
Q1. How can mobile operators, software designers, and handset producers inspire Europeans to use their mobile phones for longer lengths of time and for more applications? Segmentation: business users (Intranet access, GPS, etc.) / leisure users / young people (design, pictures downloading, music downloading, etc.) Market penetration: elderly users Cheaper and more flexible prices, e.g. one period of time = one price (cf. Swisscom, 1 hour = 50 cts) Optimizing connection speed and screen resolution Promotional offers to discover new applications Using mobile phone as a credit card Bonus points based on usage (as Cumulus card - Migros)
Q1. How can mobile operators, software designers, and handset producers inspire Europeans to use their mobile phones for longer lengths of time and for more applications? (2) Content: information, promotional ads (related to tourism) International roaming prices too expensive, improving agreements between providers from different countries Development of the use of mobile phones in planes Ease of use Ergonomics of handsets, batteries longevity Health (GB: remote supervision), security => Do users really want multi-function phones or do they prefer specialized phones (with specific applications)?
The theory behind: TAM (Technology Acceptance Model) A considerable body of scientific literature in Marketing and IT/MIS Key variables: Perceived uselfulness & perceived ease-of-use Other variables: perceived behavioral control, perceived risk, demographics (age, gender) (1) Perceived ease of use => a number of your arguments (2) Perceived uselfulness of 3G ???? Are the features really perceived as ‘useful’ (especially when price is considered) (3) Perceived risk: electromagnetic waves near to the ear may cause brain tumors, a sensitive topic that is still undecided in terms of medical evidence (4) Perceived behavioral control and circumstance of mobile phone use (car, restaurant, classroom, etc.) Suggestion: increase (1), (2), and (4); decrease (3) Segment according to demographics (age, gender) + business users vs. non-business
Q2. Using the cultural differences highlighted in the case, outline a 3G strategy targeted to one northern and one southern European country, that will explicitly take these differences into account Competitive environment different in each country Price (differences in price-mindedness across cultures) Design, aesthetic (cross-cultural differences) Applications, content (novelty orientation, resistance to change may differ across cultures) Use (sensitivity to the disturbance of others) / technology perception / mobile phones features Users segmentation: business users, leisure users, young users is rather culture-free Some segments are likely to be rather transnational (e.g. young users) and relatively culture-free
Q2. Using the cultural differences highlighted in the case, outline a 3G strategy targeted to one northern and one southern European country, that will explicitly take these differences into account (2) Shared characteristics across regions (North vs. South): - Northern European countries (mainly The Netherlands and Germany): effectiveness / be organized, professional use, use of mobile phones restricted in public areas - Southern European countries (12 groups out of 14 have chosen Italy): family, long communications
More theory: Looking at (real) cultural differences Start from the surface before digging deeper: look first at a consumption behavior and its context in as great detail as possible –Freedom dimension –Pleasure of talking (i.e. oral culture favoring speaking over writing) –Being reachable / (permanent) social connection –Possibly disturbing others (proxemics, Hall) –Sensitivity to perceived risk (health issues) Meaningful differences: communication patterns, individualism- collectivism, language, time orientations (monochronic/polychronic), orientation to others Communication patterns differ across Southern and Northern Europe Individualism does not significantly differ Time orientations differ
Findings from Valette-Florence, Ferrandi, and Usunier (2001) about differences in time orientation between France and Germany, and their influence on use of mobile phone Mobile phones involve daily routines in reference to chronological time (Newtonian time), saves time (economic time), and enables immediate voice communication in order to relate to others (unorganized-time). Using a mobile phone allows the individual to manage activities instantaneously, much like a polychronic use of time. An initial qualitative survey was set up in order to determine the main components of mobile communication behaviour through a focus group of twenty French mobile phone users. Three main dimensions appeared to be relevant for users: freedom, contact with other people, and instantaneous behaviour. Interestingly, these dimensions are located on different levels. Freedom is a means-end interpretation of a value, contact with other people a social benefit, and instantaneous behaviour a functional benefit. Seven items were generated in order to capture these three dimensions  of the mobile communication attitude.  In France, two time styles dimensions, economic time (.295) and tenacity (-.229) had an influence on the general mobile communication attitude. The link between economicity and mobile communication attitude suggested that the French associate the use of a mobile phone with the capacity to organize their own lives and to save time. The French have been described as intellectually monochronic but behaviourally polychronic (Hall, 1983). Monochronism is more associated to tenacity than polychronism, explaining why tenacity in the French time style is negatively associated with the overall mobile communication attitude. In Germany, preference for quick return (.346) and non-organized time (.313) were found to have a significant influence on the overall mobile communication attitude.
The positive link between preference for quick return and mobile communication attitude suggested that Germans associate the use of a mobile phone with instantaneous behaviour. The positive relationship between non-organized time and mobile communication indicate that mobile communication is also associated with flexible time and instantaneous behaviour. The Germans, traditionally described as being monochronic and valuing organized time, paradoxically associate a positive attitude to mobile communication to free and spontaneous behaviour. These findings indicate that consumers are not sensitive to the same product benefits, depending on country and time style. French consumers mostly value the economicity aspect of using a mobile (saving time). The Germans put more value on mobile communication to get immediate gratification and to create space in their lives for unorganized time.  Jöreskog’s Rhô (reliability indicator) is.96 for Instantaneous behavior (2 items),.98 for Freedom (3 items) and.96 for Contact with other people (.96).
Q3. Taking the case of mobile operator Orange, what would you advise as a pan-European 3G strategy? The context: high prices for UMTS licenses (3G) + costly investment in new equipement have caused difficulties for the mobile phone industry in Europe Robins’ (2003) recommendations: Market segmentation (business users vs. leisure users, desired content for each segment), recreational services, regularly add content, games, weather forecast, secured transaction mode Price reductions Education of the consumers (not easy) Improvement of the services, high-speed connections Advertisement (with the risk of investing for other brands) Roaming: attractive price from foreign countries (EU) Compatibility between countries (3G standards) => Standardized package with local adaptation