Intergrated marketing communications

The main form of research for my assignment entrust be through the library and Internet.I provide do research into companies that argon found out there as Motorola companies go out learn go with re carriages, which can be found either on the Internet or in libraries.This section provides a detailed account of the research undertaken to complete this assignment and further, goes on to analyse the strengths and weaknesses of each particular method. It is use to give support of the benefits thought to be associated with each research method.With my knowledge of the Chinese marketplaces mixed in as well, I will hopefully formulate assignment that will be unbiased and concise.Executive SummaryAs the add together mavin of the orthogonal export-import electronic company in mainland mainland mainland China, was in extraordinary position, Motorola has established a strong foundation and developed powerful affinitys in China.As the China become more open and developed today, all th e world organisations ar likely to crap their business in China. As the first tele parley company who is entry in their business in China, Motorola has successfully bring in Chinese market, how does this communication skills as they used, this is the main topic of this assignments.1) China market environmentFor the BBC mods reports the US businesses community see the worlds most populous agricultural as potentially their most cabbageable market, and the US interests hope an open Chinese market could help pull the economy out of its present slump.why is that? Thought it took 10 days to build a active user base of 10 trillion in China, the number of subscribers increased from 10 million to 100 million in less than four years.Currently, China wide awake telecommunication market is no topic short of Stellar no other market in the world is adding 5 million mobile subscribes a month (2001) to their customer base.Chinas mobile communications market, with over 120 million user by mid-2001, has over taken the US to become the largest mobile phone market in the world.China is already the largest market for cellular phones in the world and pass judgment to be the second largest PC market in the world. China is become the second largest telecommunication market by the remainder the 2003.1.2) Economic environment special economic zones in ChinaChina now is the biggest consumer market in the world, China have thirteen Special economic zones (SEZ), especially seeed for the foreign and private owned investors.The first in Shenzhen in the province of Guangdong in 1979, since then, three further SEZS have been established in south China Shenzhen, Zhuhai and Shantou in Guangdong, at Xiameng in province of Fujian.After 1984, China making the condition more comfortable for the foreign investment, and in 1998, Hainan Island acquired SEZ status at the same age as being sanctiond to being autonomous province.The SEZ are able to accept foreign investment in virtua lly any area of economic exercise of interest to China, including all the service and action area.Since 1990, foreigners are now to engage in land development, and to install electric power and telephone service to expire utilities in one of the designated investments zones. All the technologies investments are reduced of taxation.The all of 13 SEZ zones include Dalian, Fujian, Fuzhou, Guangzhou, Hainan, Ningbo, Qingdao, Shanghai, Shantou, Tianjing, Xiamei, Zhandjiagang, and Shenzhen.Preferential administrative producedures and tax incentives would be available for the foreign investors with in economic zones.1.3) China mobile market informationBefore we proficientified Motorolas market communications plan, we need look at what physical body of market do we catch ones breath in at? What is in here?As this assignments topic is Motorola PLC (China), So we need look at what is China mobile market genuine situation.As by report, China mobile communication market is developing ra pidly. The number of mobile phone subscribers in China increased from 6.85 million in 1996 to 85.26 million in 2000.The year 2000 saw an additional increase of by 41.97 million, exceeding the number of fresh subscribers of fixed phone networks for the first time of history.From 1996 to the end of 2000, the average annual rate growth rate of mobile phone subscribes remained 95%.By the end of 2000, the population of the mobile phone hold reached 6.7%, it is estimated that the organic number of mobile phone subscribers in China will reach 250 million in 2005.So that took 10 years to build a mobile user base of 10 million in China, the number of subscribers increased from 10 million to 100 million in less than four years.Wow, that is how debonair lates for the each company who want doing their business in Chinese market.2) OrganisationMotorola (China)For the topic above that, I choose Motorola Company in China as my selected company.Motorola inc, the worlds ternioning company in st ateing integrated communications and imbedded electronics solutions, was set up in 1928, pedigree from marking rectifier and motor radio, Motorola grow up in 1940s and 1950s, gradually became a transactional company in 1960s from when it began to develop its overseas market.Now, Motorola has over 110,000 employees around the world. Its operations cover wireless communication, semiconductor, automobile electronic, broad brand, Internet and Internet access products.Motorola is the loss leader in mobile phone, paging, two-way radio, and commercial GSM and CDMA.In 2001, the company has scored a total sales plenty of US $30 cardinal.Motorola Company established its branch in Beijing in 1987 and registered in Tianjin Motorola semi-conductor and car appliances. In 1992, Motorola has set up Motorola (China) electronics LTD.In Tianjin has begun to produce beep-pager, mobile phone, two-way radio, wireless communication facilities, semiconductor, automobile electronics etc.Motorola is the largest foreign investor in China. Over the past 15 years, company has invested 28.5 billion yuan ($3.4 billion, intimately 1.7 billion). Motorola (China) has consisted of 1 owned factory, 1 holding company, 8 R&D facilities and 26 sales offices. Motorola china employs total revenue for 2002 reached 47 billion Yuan ($5.7 billion, about 2.85 billion), up to 16 % from when was ($3.6 billion, about 1.8 billion) one of the largest exports in China.Motorola entered China at a prime time when mobile communication novel theme and no one was selling. As a result, the company enjoy success in selling its pager as tens millions of Chinese wanted convenience and symbolization of fond status (this is Chinese momentum and a strong emphasis on design and selling, Motorola hold the largest market share in China, about 28%, as its brand is with best in quality, features and form factor.In 2001, Motorola Company with a total sales volume of $4.9 billion in China entered into a 1.44 billion d ollars network construction and expansion contract with suppliers like China telecom and Unicom.The company has a staff about 15,000 in China. Motorola is the number one provider of micro controller products, which more than 18 percent of the global market.Motorola Company has been first in its market share in China in three consecutive years. According to the 500 strongest foreign-invested companies in China, in place of Shanghai Volkswagen, which it has kept title in nine years.Over the years, Motorola has developed a unique strategy for the emphasizing applied science transfer, continuing investment and association cultures. The company has invested all its profits from china back gradually topical anestheticized its China operations (nearly all Motorola China companys Chinese, 75% of managers).At present, Motorola with eight co-invested companies in China is actively implementing various co-operation projects in the fields of new and hi-tech technology research and development s with famous universities, scientific research institutions and enterprise in China.Motorola is a major supplier of mobile communication equipment which including mobile switches, base stations and handsets for GSM and company is one of the some companies that can offer complete CDM (infrastructure and handsets).Until now, Motorola (China) has made up to 64 million (RMB) donations to China hope project, tertiary education, flood salvation and western sandwich development.The company has launched brand all of the China, Beijing, Shanghai, Guangzhou, Zhejiang, Hunan, Tianjing, Suzhou, Hainan, etc. Anywhere have mobile user there is a Motorola.3) Motorola China mission statementVision To be the standard against which others are measuredMission To manipulate aspiration quality accessible to allValues Quality value, service, innovation and trustMotorola is China to stay and grow. Motorola has to date invested US $34.5 billion in china and employs 13,000 pot on the Chinese mainland . It is the big foreign investor industry and it is one of the biggest American investors in the Chinese market.Motorolas relationship with Chinese political science officials is continuing. Incapacity neighbour Beijing, manufacturing pagers, mobile phones, semiconductors and other wireless communications equipment. In April 1998, it moved its north Asian office from Hong Kong to Beijing. canvass to other foreign competitors, Motorola have a long-term vision in the Chinese market.Motorola entered China in 1987 and registered in 1992 a company in Tianjin, a muFor us to fully understand the recent success of a greatest China institution, and how they can build upon its success, we must(prenominal) first examine the infrastructure of the company itself.4) Model for merged Marketing CommunicationIntegrated Marketing Communication is more than the coordination of a companys outgoing message amidst different media and the unanimity of the message throughout. It is an aggressive market ing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy. Steps in an Integrated Marketing system are1.Customer Databasean essential element to implementing Integrated Marketing that helps to segment and analyse customer-buying habits.2.StrategiesInsight from analysis of customer data is used to run marketing, sales, and communications strategies.3.TacticsOnce the basic strategy is determined the appropriate marketing tactics can be specified which best targets the special(prenominal) markets.4.Evaluate ResultsCustomer responses and new information about buying habits are collected and analysed to determine the effectiveness of the strategy and tactics.5.Complete the loop.5) Customer target of Motorola ChinaAs the Motorola has wide present of mobile products, the vary of products designed as different of user assemblage.For the Motorola (China), I selected four diverse of target marketing root words that are fashion user heavy user, social life lover user and high technology user.* Fashion userMost of young generation and between age 20-40, who loves to carry the new design and functional mobile phones, and change their mobile phone frequently.They more care about their appearance of mobile phones such as size, colour and diversified functions. The publicizing for this group should trend these side of behaviour.However, the product targeting of these group are lone close to(prenominal) a short life cycle, the company should to contours move forward their product design, to lead the mobile market fashion.* Heavy userNormally they are successful businessman and woman, professionals and private company owner, are aged which above 30 years old, with a higher incomer.The people in this group as show in mobile as their necessary tools for their business or jobs, not kind of fashion staff. They always are early holders of mobiles phones, for them, it is wide-cut to stick with one brand, not always change, because they dont seems to have a time to use new manure.Therefore, for this group need have much high quality of the product and faultless customer service, also this group is much loyal in certain brands differentiate with other group, so it is actually important to reach this groups customer.* Social life lover userThis group might not that rich, but they are very active, enjoys pup, restaurant, nightclub all those kind of staff. They like to make friends and more care about their families. A mobile phone is the best tools for them to communicate with other and property in touch.They may not enjoy getting a very attractive appearance or very complicate functional mobile phones the people in this group are much sensitive to the price of the phone than other groups, because they normally do not have very higher income and only got average salary.They normally are patient to wait about sales promotions in order to get good price with good deals.For this target of view, th e profit margin of mobile phones targeting for this group are focused on lower price.However, with the increasing number of the mobile phones holder, this groups people are quickly growth and make more contribution to the growth of the market size. So, we cannot disregard the exist of this group.* Technology userThis groups customer are normally male, high educated, the age of them are between 25-50. They are very interested to try advanced technology, and always seek new mobile phones with innovative technology and wide functions.Customers in this group are more likely try some new accessories connecting to the mobile phones and other own(prenominal) digital equipment, such asIs this mobile phone are good to connect to the laptop or Internet or is this mobile phone have a good camera?6) Promotion methods Cross promotionSometimes the cross-promotions that find oneself between different industries work so well. One company actually buys the expertise of the other and opens an outl et incorporating both.Benetton and Motorola rolled out an elegant line of pagers as fashion accessories. The cross-promotional assistants vision is to make the humble pager a fashion statement, with customers wearing matching clothing and pagers on their belts.Motorola persuaded Benetton to license its name and provide productive consultation to Motorolas paging division, which manufactures the new devices. Motorola Pagers, in colours ranging from raspberry purple to buttermilk will be advertised on Benetton models will have the United act upon of Benetton slogan stamped on them, which both gives Motorola and Benetton an advertisement, is called moving advertisement in the China.6.1) Master card international and Motorola allianceMasterCard International and Motorola companies announced that each would commit resources in a joint effort to make m-commerce a reality for consumers worldwide.Motorola and MasterCard will collaborate on continuing research and development projects to assure interoperability between MasterCards electronic payment systems and Motorolas wireless Internet devices and platforms. The two companies plan to develop next-generation m-commerce technologies that support the initiatives of the newly formed Global Mobile Commerce Interoperability Group (GMCIG), of which both companies are key members. The alliance also includes cooperation on a number of key initiatives to promote the benefits of m-commerce to consumers through joint marketing activities.The companies also plan to work unneurotic to adapt existing, intelligent payment systems for the mobile environment. These systems include MasterCard M/Chip(tm), its chip-based integrated credit/debit system, and Mondex(tm), MasterCards chip-based electronic cash payment system.Motorolas alliance with MasterCard will enable Motorola to work closely with MasterCards 22,000 member financial institutions. As a result, Motorola expects to realize continued improvements in the capabilities and functionality of its existing wireless Internet devices and platforms.Both companies also will benefit from the respective experience, leadership and brand recognition of the other Motorola with its reputation as a global communications leader and pioneer of the wireless Internet, and MasterCard as the most widely-accepted electronic payment brand in the world and a catalyst for the development of m-commerce solutions.7) List of stakeholders Motorola ChinaManufactory & Products Motorola have a range of products, which include pages, mobile phones, Internet and Internet access products.The integrated electronic system sector, we called them IESS in Motorola, formally as known as ACCES (automotive, computer and communication components and energy sector), consists as two parts the energy system group (ESG) and the automotive and industrial electronics group (AIEG).ESG Tannin factory has several SMT assembly lines, with high-precision ascent capability and speed, the factory is capab le of producing a wide range of PCB electronics products, to meet the requirements of customers.ESG Tianjin now produces nearly 100 types of batteries of various series for Motorolas company, V series, time port, lambaste about, two-way radio products and other electronic devices.The Motorola (China) factory is played an important role of Motorolas development strategy.Suppliers Motorola have about 700 head supplier or collateral supplier of Motorola China for total 13,000 employees.Distributors These are the sources for companies to deliver their products throughout the market. The primary distributors are the state funded networks and the larger distributor networks throughout the China.A key government network, sponsored by china mobile, is a key network as it sells and distributes other brands. Another strong channels is companies like Cellstar and bright point which are the worlds prima(p) global providers of innovative, value enhancing logistics services to the wireless co mmunications industry.Another channel outlet is the smaller private exclusive distributorship agreements, which Motorola does not depend heavily on. These partner combinations are important for companies who depend on them to get their products to the ever-expanding market regions.Subscribers By the year 2003, the Motorola mobile phone subscribes in China will reached 75 million, and the number will go up to 200 million by the year of 2004, but most of the market share will be taken by Motorola.The figure 2 is show in the growth of subscribers.Source Temple UniversityCustomers as I mentioned above, Motorola (China) separately with different customer user group, every group have their characteristics, we need try to carry out diverse of product design, plan and strategy for those various user group.Employees Motorola has over 110,000 employees around the world, which Motorola (China) has about 13,000 employees, by the end of last year, Motorola (China) has about 700 managerial staff are Chinese, including about 200 female, which accounts 26% of total number.Government China government structure plays an raise role in the assumption that foreign companies will maintain dominance.Retailers the retail distribution for the mobile phone is severely fragmented, but consolidating with industry growth and expansion. As mentioned previously, because of its dominant position, china mobile serves as a major distributor for mobile phone technology producers.Major department stores and retail outlets provide some other key outlets for distribution. There is no one way to get products to consumers, as no one company has access to all of the markets in the nation, so providers must develop relationships with many types of outlets to gain market advantage.This is changing as the larger outlets and suppliers are buying up smaller retailers to consolidate their retail capabilities.8) Marketing goalsFor the Motorola marketing goals, I think one of the most significant developme nts in business in recent years has been rapid growth of international activities. Exporting, foreign direct investment and sourcing of products and components abroad have expanded dramatically.Many firms enter new international markets make their company more competitively and new product ripening more quickly.The market entry relates to the easy or difficultly with which a firm can become a member of a group of competing firms by producing a close substitute for the products they are offering. The firms must develop a range of products, assets, marketing strategy and management activities for the new market entered.Motorola will emphasis on facilities to make wireless telecom equipment, mobile phone handsets and semiconductors, it already told the largest investor in China electronics industry.Motorola will carries out a win -win development strategy from beginning and bring idea of taking China as its home and development base, to win the Chinese government and peoples heart.Exa mple as with development over 15 years, Motorola has made a big success in China and been turned into a famous brand. In 2000, Motorola (China) is the leading company of 1,000 high-tech companies by china high-tech enterprise evaluation centre. In 2001, Motorola (China) was the biggest foreign import-export company in China.8.1) Corporate goalsIn an effort to retake global market share, Motorola is relying on its long-standing local investments, self-expressive branding campaign, and redesigned products platforms to dominate critical emerging markets.Motorola company would continue to invest all of the proceeds of the company the company made from China in expanding production and Chinas accession into the world trade organization (WTO) and will sell a half of the companys products on the international market.9) Case at Motorola pull strategyMotorola will purchase US $10.5 billion of components from the Chinese market and will export more than US $12 billion worth of commodities at 2004. Motorola will be using Japans most popular 3D graphics technologies in its new mobile phones in an effort to claw back sales from market leader Nokia and rising star Samsung.3D graphics are expected to be a standard feature on mobile phone handsets, especially. Just as with PCs, mobile devices will soon have separate processors for handling graphics because this eases the main processors workload and allows more complex and better looking applications to be executed.The 3D games will pull some mobile phone users to upgrade.9.1)) Motorola push strategyMotorola setting up a new application development centre to promote wireless data services among Chinese networks. The company plans to help local telecommunications operators link up with application developers to offer quality control, engineering and logistics support as well as sales and marketing help.Mobile phone companies worldwide are moving to set up data-oriented 3G networks to boost capacity, improve coverage areas, and offer services such as 2.4-megabit-per-second wireless broadband. The data-oriented services are also expected to help make up for plunging revenue from voice calls.10) Example of marketing communication mix MotorolaMotorola, the worlds second largest wireless phone market, held its 2003 product launch in Shanghai, China, with a line up of handsets clearly meant to appeal to buyers not just on functionality but also stylish.As Motorola has historically been perceived as engineering driven company and its products have reflected that heritage.While that approach has yield some of the markets hall of frame products such as the 1996 introducing of the star TAC todays mobile handset market is increasingly focusing on the youth market, where designs that reflected their style s and personal expression are key.Motorolas product launch event in China was more that just an opportunity to release its new handsets. It was also a showcase meant to highli9ghtr the companys new mindset and marketing strategy that should help it build market share.The Motorola campaign and the 2003 product line seek to embrace that trend.The 2003 line showed off many evolutionary products, including phones with advanced colour displays, a new 3G phones, and a new technology called haptics that envelops the user in what is best described as a vibration field that differs depending on the caller.The new handsets also have a strong focus on picture messaging, with many models offering built-in cameras.The company is also keeping hail and manufacturing efficiencies in perspective. Motorola is increasingly adopting the practice of reusing the same chipset and wrapping different hardware and software skin around them to offer a different looking g product- build on products and sell it in four different ways, there by appealing to a wider range of audiences.Well, today, handsets are not only tools, there are fashion statements, and something can show with personal styles. Motorola now is ap pealing to there sense of style, in addition to offering advanced phone features.During that lunch, one thing is clear this is a company that knows that brand equity and defining the brand are important factors.The 200 analysts and media who attend lunch events every advertising excavate between the airport and the hotel were covered with their hello Motorola ad campaign.The product rollout was treated like a movie premier something Motorola would never have done few years ago featuring Motomodels, Motococktails and have course Motophones.The event clearly showed how management has completely retooled and refocused its product strategy for the better.11) Motorolas strategy planAs Motorola kept their intimated relationship with Chinese government from the beginning of the time when they entered Chinese market, so Chinese government always is the strongest support for the Motorola (China). The major investment focus will clam up be around north Chinas Tianjin area where it launc hed it production base in 1980s. It will put over two billion Yuan (151 million) on Tianjin based Motorola (China) electronic company with in next five years. The strategy of Motorola is not to seeking quick money returns, but also has a long-term dedication to the China market. The Motorola (China) will adhere to a principle of introducing the latest technology to Chinese market and continues operate with smooth co-operation with domestic partners in the market.The famous 2+3+3 strategy for the Motorola of Chinese operation, this strategy which include building China into a worldwide manufacturing and R&D base for the telecommunications equipment giant. It includes three new growth areas including semiconductors, broadband and digital trucking systems and three $10 billions goals through 2006. Local sourcing is an important development rule for Motorola in China. Motorola hope takes part of China economic construction by enforcing this rule and strengthening its co-operation with Chinese enterprise. Motorola will choosing local company supplier, helping them improving their management, enhancing efficiency and promoting quality regulation system, or even will bring them into contract with foreign regulation system.Example as in year 2001, Motorola had a RMB13.3 billion purchase from Chinese enterprise, including RMB 3.3 billion by overseas branches of Motorola, the amount which is much high than other foreign companies in China. For the long-standing Chinese culture and specially background (Chinese government are controlled by the communist party), so that Motorola will choose their management team locally.Example Motorola offering a huge range of training program for their Chinese employee, by the end of 2001, Motorola has a 767 managerial employees are Chinese, which is account of 26% of the total management number.12) LocalizationKnowing that consumer preference in the Chinese market is sooner different from that in the US or UK market, Motorola started to localize its product development after the initial poor performance of pure global strategy.Now Motorola adapts its models to meet the specific demand form local markets rather than simply throw the current products into the market without any adjustment.The R&D centre in China successfully developed software to show the menu in Chinese and input Chinese characters.In 1999, a combination PDA/phone, which was designed by Chinese engineers, was launched in China and spread to the us and European countries.Motorola localization strategy also includes local souring. The company takes initiative in establishing relationships with local suppliers.7 years ago, 65% of components were imported, while 69% of components are purchased locally now.Local souring brings Motorola three major benefits lowering manufacturing cost, reducing risks from currency fluctuation, and catering to Chinese governments requirements.13) advertize and promotions targeted to market groupsAccording to my analysi s above, Motorola has four target customer groups, and there are four sub-brands to respectively target the 4 market segments time port to heavy user, accompli to technology user, V. to fashion user, and talk about to social-life lovers.Different advertisings and promotions are implemented to target these 4 specific categories, which are show in down the stairsFigure 2. Advertising and promotions targeted to market groups