Published by MBA Skool Team, Last Updated: December 21, 2016
Marketing Strategy of Motorola analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Motorola marketing mix, help the brand succeed in the market.
Motorola marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Motorola Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Motorola marketing strategy can be explained as follows:
Motorola product strategy under its marketing mix can be studied by understanding its two main segments: Products and Services
Products: This segment offers of communication infrastructure, devices, software and accessories. Customers of this segment include commercial and industrial customers as well as government, Emergency and public safety agencies. This segment of Motorola had sales of $3.7 billion and represented 65% of consolidated sales.
There are two product lines in this segment of Motorola products:
Devices: Devices includes: (i) two-way portable radios and vehicle-mounted radios, (ii) accessories - batteries, speaker microphones, headsets, earpieces, carry cases and cables, and (iii) software features and upgrades
Systems: Systems includes: (i) the radio network core and central processing software, (ii) base stations, (iii) consoles, (iv) repeaters, and (v) software applications and features
Services: This segment of Motorla service provides offerings for commercial communication networks, government and public safety. The main product lines are:
Integration services - Integration services include the application, optimization, and incorporation of systems, devices, software, and applications. Managed & Support services – Include a wide range of services related to repair, technical support, and hardware maintenance. Integrated Digital Enhanced Network services – Consist of hardware and software maintenance services
Image: company website
Motorola Price/Pricing Strategy:
Below is the pricing strategy in Motorola marketing strategy:
Motorola Solutions is the market leader in public safety communication which includes devices and infrastructure.
Motorola Solutions has greater than 50% share in public safety radio handsets and infrastructure. This market leadership gives it cost advantage that is it can produce products at a lower cost and sell them at a lower price to generate a larger margin on sales. This position also gives the company significant power to bargain with suppliers to determine prices. Motorola uses economies of scale to produce large number of products and bring down prices. Because of its diverse offerings, the pricing strategy in the marketing mix is not only based on market leadership but also enterprise requirements & competitor offering. Motorola produces high tech and innovative products hence when it introduces a product the price is generally high. This is because the lot of investment in research and development and market research into the product. As the product life cycle of the product decreases the price is brought down. Since Motorola caters to the government which awards contracts based on tenders Motorola has to work with fixed priced contracts, this can be a source of risk as prices of production may go up.
Motorola Place & Distribution Strategy:
Following is the distribution strategy in the Motorola marketing mix:
Motorola Solutions products can be brought in stores or online. There are various third party retailers who sell these products in store as well as online such as Amazon, Costco, Wallmart. Motorola works with a global network of channel partners to provide mobility and communications products to customers. Motorola has a Motorola Solutions PartnerEmpower™ Program which is used to ensure that channel partners understand the products and can give technical help and cater to the needs of the customers. The company has over 7,500 channel partners. The company’s channel partners include Mobile Radio Service, Two-Way Radio, Keystone Communications among others. The company’s distribution partners include Astra Communications, Wireless Solutions and ACS among others. The company’s software partners include Rayfield Communications, Genesis among others.
These channel partners allow the company to deliver its diverse goods and services to different segments of customers which have different needs.
Motorola Promotion & Advertising Strategy:
The promotional and advertising strategy in the Motorola marketing strategy is as follows:
Motorola has developed its brand image on innovation and high quality. Motorola works in tandem with its channel partners to market its products. It provides effective and reliable sales and marketing resources, materials, tools, which enable the partners to promote the products effectively. Partners can create marketing resources with Motorola to generate demand and explore new markets. The resources provided are videos, presentations, price lists, brochures product specifications, technical documents among others. Special promotion offers are used which include discounts, incentives and rebates. This gives an overview on Motorola marketing mix.
Motorola changed its name from Motorola, Inc. to Motorola Solutions, Inc. in 2011. Motorola Solutions is a manufacturer and provider of communication infrastructure, devices, services, software and accessories. The company began operations in 1928.
It has customers in more than 100 countries and employs 15000 people as of 2014. It is headquartered at Illinois US.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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