>> MIM Speaks
LINKING THE WIRED TO THE WIRELESS
JULY 29, 2001 (P.32) -
THE STAR
HOW do we get to wireless time? Anybody who is a good marketer
of Internet time, such as AOL, can also become a good marketer
of wireless time, such as NTT DoCoMo. Join the two together as
is the case in Japan, and good Internet marketing managers
become good wireless marketing managers, too.
Today, 25 million Japanese customers of wireless service from
DoCoMo pay for content from AOL Japan.
Which strategies are crucial to the success of marketing
wireless time? Here is a short list from my book, Conquering
the Wireless World.
Product marketing: Marketers introduce miniature information
appliances with unique interactive content for wireless
customers. Check out the daily manga cartoons on DoCoMo.
Promotion marketing: Marketing managers provide customers with
value-added intangible product attributes that are included as
part of their smart handheld devices. See Nokia's
rainbow-coloured wireless phones.
Price marketing: Marketers offer both commodity and higher
value-added prices as marketing managers divide wireless
customers into those who do virtually everything online and
those who prefer personal services from telecom, content and
financial service providers. Compare prices for 2G and 2.5 GPRS
services in Europe's GSM community versus DoCoMo's loss-leader
pricing of 3G service in Japan.
Price marketing is by far the most important marketing strategy
for establishing wireless time. The "right" price creates
firstmover advantage, builds market share, and insures market
dominance.
For example, European and Japanese wireless marketers must
teach US customers, who prefer free Internet content, to adjust
to paying for content, and to join the rest of the world in
paying for virtual transactions online through mobile phones,
m-commerce, and the wireless Internet.
Segmentation: Marketers divide groups of people across national
frontiers into those who have the income, are the correct age,
live in the right neighbourhoods, and belong to modernising
ethnic groups as candidates for the purchase of miniature
information appliances, 3G telecom services, and interactive
Internet content. Check out teenagers and SMS; young adults or
Gen-Y, transaction capability, and wireless time; and older
adults or Gen-X, voice and data communicatians, and Internet
time.
Targeting: Marketing managers assemble smaller groups of people
who are bound together by their professions, such as
entertainers, or by their skills, such as athletes, and by
their personal tastes, habits, and values, such as info-tech
geeks. See NFL football, FIFA soccer, NBA basketball, WWF
wrestlers, and other sports personalities who cannot wait for
3G; their coaches who are happy with 2G and 2.5G; and the
owners of the teams and franchises who remain tied to wired
time.
Positioning: Marketers match possible online Internet products
with probable customers; the former offers the latter enhanced
customer relationships to try out m-commerce, the mobile
Internet, and wireless time. Compare the first- place success
of Nokia versus the second-place position of Motorola, and the
failure of Ericsson. Also study the contest for US market
share among Vodafone AirTouch, DoCoMo-AT&T wireless, and
Deutsche Telekom-VoiceStream Wireless.
Although marketing professionals speak of segmentation,
targeting, and positioning as one continuous effort, targeting
specific likeminded groups is by far the most important of the
three in delivering value to present and potential customers of
wireless commerce.
Currently, no US-owned firms are first movers in the race to
dominate wireless time. Instead, they must depend on
partnerships and alliances with European- and Japanese-owned
firms to learn how to price wireless products properly for the
appropriate target market groups in the United States and
elsewhere in the world.
How do wireless marketers make money from wireless time, or
what will venture capitalists at the Mobile Wednesday meetings
in Chicago invest in today, tomorrow, and in the second- half
of 2001?
1. Design new interactive content for the wireless Internet
that is different from the content for the wired Internet.
2. Form wireless alliances among telecom and content providers.
3. Turn iMode and WAP phones into dualprotocol, miniature
information appliances for 3G digital service.
4. Sell cell phones to the following age segments: M-generation
kids; teenagers; Gen-Y (twenty-somethings); Gen-X (thirty-
somethings); and boomers (forty-somethings).
5. Market anytime, anywhere voice and data communications, and
transaction capabilities to the following values and lifestyles
target groups: "Supli" teenage Japanese young women, unmarried
American info geeks, married European business executives,
Chinese bureaucrats, and others.
6. Build brand communities as productbased experiences for
DoCoMo and WAP users.
What are the best wireless marketing deals discussed in
Conquering the Wireless World?
* WEB-BASED phones, whose screen or "home deck" shows books,
CDs, airplane tickets, and other items to purchase, from
Finland's Nokia. * W-CDMA or CDMA 2000 from America's
Qualcomm. * DISTRIBUTION alliances for connections and content
from Japan's NTT DoCoMo-AOL Japan. * ELECTRONIC wallets from
Finland and Sweden's Merita-Nordbanken. * ONLINE stock trading
from Charles Schwab and other non-bank financial institutions.
* INTERNET banks from global and local banks in East Asia,
Europe and the United States. * WIRELESS Ethernet network from
America's Aerzone and Wayport for the Red Carpet Clubs of
United Airlines, the lobbies of five-star hotels, and intranets
for business offices, university campuses, and Starbucks coffee
shops.
Today, these wireless deals create value for marketers, beat
out competitors, grow sales rapidly, build market share, make
money for business firms, and help investors conquer the
wireless world.
Wireless marketers must spend a great deal of time creating and
delivering value for mobile phones, m-commerce, and the
wireless Internet. The devil is in the details on how and when
interactive content, distribution, and platforms morph into
interactive wireless sports, m-entertainment, mobile banking,
and other possible money-making wireless marketing deals.
Events do come along to disrupt the best-laid plans of
marketers, technologists, and venture capitalists, such as
loss-leader pricing, Ethernet networks, and market share
dominance.
Thus wireless marketers must develop improved targeting
strategies to keep Nokia, DoCoMo-AOL, and Vodafone AirTouch
ahead, and second-best wireless marketing strategies to help
Motorola, AT&T Wireless, and Deutsche Telekom-VoiceStream
Wireless stay in the competitive race.
This is the challenge facing wireless telecom and content
providers as they prepare for fewer, but stronger competitors
this year, next year, and through 2003.
Remember: No wireless success today means disappearance from
the wireless market tomorrow.
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