Chapter 7 - Business Marketing

   Business marketing, also known as industrial marketing, is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. However, Motorola mobility is a company that market its product to the end consumer:hence it sells consumer products. Motorola Solutions which was a sister unit of Motorola mobility that split in 2010 from Motorola Inc., is a company that utilizes business marketing. It sells major equipments, such as interactive kiosks, and RFID readers to businesses. Moreover, it provides accessory equipments like bar-code scanners, portable computing devices for stock management, and communication devices for organizations(two-way radios). Those products are intended to improve efficiency, and productivity, of businesses. and to be used for organizational tasks, other than personal use. 

   

Motorola Solutions advertising its business oriented products on their website

Strategic Alliance

  With the current state of affairs, Motorola has not considered a strategic alliance with any other company. However, they were engaged in it in the past. In 2012, Intel and Motorola made an agreement with each other to combine Intel's newest atom processor with Motorola's RAZR i android smartphone. Intel CEO at the time stated that their chips would provide a great platform for Motorola devices. It was the only US mobile phone manufacturer to use Intel processors in 2012, but the reception was not ecstatic. Intel processor was in its early stage, and it was not up to the level of Snapdragon processor at the time, and RAZRi was struggling in the market. Therefore, Motorola moved on to the Snapdragon processor that was hailed as the best mobile processor at the time. 

Birth child of their strategic alliance, RAZRi

Chapter 8 - Segmenting and Targeting Markets

  Motorola's market is the mobile phone market. They introduce mobile phones to fulfill the needs and wants of their target market every year. In the past, Motorola was criticized for their marketing segmentation woes since they were only focused to sell their products in the U.S. However, the new management of Motorola has re-positioned  itself in the diverse mobile market to fulfill the needs and wants of both emerging, and established markets. It is evident from their new devices as the new Moto G was targeted at emerging markets such as, Chile, Peru and Brazil, while slightly expensive Moto X was targeted at established markets like U.S, including Europe, and Australia.This method of segmenting the market is known as geographic segmentation.  It allows them to identify group of customers with similar needs and wants, and also the buying patterns of these markets. Eventually, it delivers a marketing mix that caters to specific needs and wants of the segment.

  This method of market segmentation has worked in favor of Motorola in the last few years. It is mainly due to segmenting the market according to the criteria of successful segmentation.

1. Substantiality - They have utilized it to their advantage in order to sell their low budget Moto G effectively in emerging markets. When they announced the phone, they decided to release it in countries like Brazil, Chile, Peru, and India. I was startled by this because they did not include China to that list, which apparently has a boosting market for smartphones. Later, I found out the reason behind it when I read an article about Moto G. Chinese government has blocked Google play services which is essential for android phones. Since Moto G runs Android based software the consumers in China is most likely to buy a home based brand instead of the Moto G because of the lack of features due to the missing Google play services. Therefore, they have capitalized in other emerging markets excluding China.

2. Identifiability and Measurability - These markets that I mentioned before are being identified as emerging markets, because of the rising demand for products, such as smartphones, tablets and computers. The low price point of Moto G it attracts a lot of customers in these markets, since it matches their limited buying ability. It may be the reason why Motorola decided to market their products in these emerging markets. 

3. Accessibility  - This is common factor for all markets, because it is vital to reach the customers with special needs in any market. For example, Europe and U.S.A both have a high population of senior citizens. Finding solutions for accessibllity is less tedious for a company like Motorola because they have the ability to add features for their products without changing the product completely. They have added accessibility features such as, enlarge fonts, magnification gestures, talk back features that makes those devices easy to use for senior citizens as well as for disabled. 

4. Responsiveness - This is evident by Motorola's pricing strategy for their leading products. Even though, they targeted the Moto X for established markets, they priced it at a low point compared to its competitors. At the same time, Moto G was also a low budget phone that has a price difference of $150 in comparison to Moto X. Most of all, the prices are globally similar. This method of pricing agrees with the fact that it is not necessary to heavily increase the price depending on the market segment, unless that segmented market responds to a marketing mix differently than other segments.  

Forecast shows a rapid demand for smartphones in emerging markets

Chapter 11 - Developing and Managing Products

Revisions of Products

   New products are essential to keep up with the market, and to maximize profits as a company in this fast paced digital era. As many other tech companies, Motorola follows the strategy of introducing flagship mobile devices every year. This trend was started back in 1996, they released the breakthrough mobile phone "StarTAC". They had a good few years after the release of the phone, but the competition was able to come up with more value added features which poised them to replace their flagship device  after 4 year to keep up with the competition. Today's mobile phone market is fiercely competitive. It is simply not adequate for a mobile phone company to replace their previous product every 4 years since the technology is evolving at a fast pace. Therefore, it has become a necessity for smartphone manufacturers to come up with a successor every year for their last year's smartphone, and Motorola has already confirmed their plans on refreshing their mobile line up this year. These new products that serves to replace the previous product are called revisions of the existing product. 

New Product Lines & Research and Development

   Fittingly to this discussion, they are about to enter a whole new product line this year with the announcement of Moto 360. It has already created a buzz in the tech community, but Motorola aims to reach the regular consumer with an ergonomic design that mimics the traditional timepiece. It's design departures from the geeky square design which is followed by other smatwatch manufacturers. These design changes were made by Motorola's research & development team that has conducted thorough research, and brainstorming to make significant changes for its new products in order to make it unique in the market.

Moto 360

Samsung Smarwatches

A different design approach to smartwatch

Four Stages of Product Life Cycle.

Motorola's breakthrough product, StarTAC is a product that went through the four stages of product life cycle. It was introduced in 1996, it was in the center attention. It caught the eye of many businessmen, since it was portable & well designed compared to its previous edition, MicroTAC. This stage was the introductory stage of the StarTAC. Sales were growing steadily with the hype of the new mobile phone as it entered in to the growth stage. Motorola reported that it sold more than 40 million units in 1999, and the European phone manufacturers, such as Nokia, Ericsson started to introduce their products to the market to compete with Motorola. By the end of year 200 sales reached 60 million units, but the rate of sales were decreasing compared to what it was two year ago. Therefore, it was the reaching the climax of its maturity stage. Predictability, the steady ship was startled by the European tech giants inventions. Moreover, several technical issues with the device drove away the new customers. By the end of 2000 it was struggling in the market, and the sales were decreasing rapidly which means it entered in to the decline stage of the life cycle. In  2001, Motorola discontinued the product as they came up with a new iterations of the StarTAC.


   Currently, the Moto X is reaching its decline stage, while the inexpensive model Moto G is in the growth stage after 6 months of its launch. Moto X has been struggling to compete with the big guns since launch, and the sales figures were continuously dropping to this day according to Wall Street Journal. On the other hand, reception for Moto G has been overwhelming, and because of this demand, it also went out of stock in countries like India, Brazil & United Kingdom. Therefore, Moto G clearly belongs to the growth stage while the troubled Moto X is in the decline stage.

Chapter 12 - Services and Nonprofit Organization Marketing

   Even though Motorola is a product oriented company, they still have to provide services to ensure customer satisfaction after purchase. For example, it provides free phone consultation, and online chat service for its customers' to help them to navigate, or troubleshoot in an emergency. Moreover, it has several repair centers in major cities to provide after purchase repairs for the their products. 

   These few services I mentioned above are all intangible. They cannot be felt or touched as their products. Also, these services are heterogeneous. For example, the repair centers of Motorola could take different amount of time to repair the mobile phones from center to center, since it depends on the skills of the assigned engineers and technicians. Therefore, from center to center the quality and the rapidity of service could vary. Same goes for their customer service. 

Service Quality

   Service quality can make or break a company's reputation regardless of their orientation. With the ease of access to internet, consumers have the ability to get valuable information about services provided by certain companies. Therefore, companies have to provide a reliable service for the customers. In fact, is the utmost important aspect of service quality. For instance, if you were to call Motorola's customer care to claim the warranty for a damaged phone, (assuming that the damage has been covered by the warranty) you would not expect to have an argument with a representative to prove your eligibility. In other words, it should be accurate to the written warranty, and the process should be effortless to the customer. 

   Moreover, responsiveness is a key component in service quality. In the example above, if you were put on hold for 15-20 minutes because of the representative's incompetency, it would definitely irritate you as the customer, and it could lead you to give him/her a negative feedback. In the worst case scenario, they could lose you as a customer out of frustration. Therefore, response time is an important aspect in service quality. To counter those issues, companies like Motorola educate their customer service representatives about products, as well as issues that are related to them.

Chapter 10 - Product Concepts

   Motorola mobility is a company that offers consumer products worldwide. Their products serves to satisfy individual wants of the customers. If you analyze Motorola's product mix, it is clearly confined compared to companies, such as Apple, and Samsung. Those companies have a wide variety of products such as, smartphones, notebooks, MacBooks, Television sets, and DVD/Blu Ray players. Motorola mainly emphasizes on mobile phones, and accessories that works along with their products: hence the width of the product mix is considerably short. 

Brand

   When you hear the name Motorola you would recall that world renowned "M" symbol in your mind. As a prestige American company, Motorola has been able to establish their brand name, and the brand logo as a leading figure in the mobile phone industry. It could be one of the reasons why Lenovo opted to keep the Motorola name, and the logo for the company even after the acquisition, because the Motorola brand has a high awareness among the consumers.

All throughout the years, the iconic "M" hasn't left its brand logo

Product Modification

  Motorola has utilized functional modification in their products to present a better user experience for their consumers. Even though, their products were based on Android operating system,  in the beginning they used a completely different user interface that was created with hopes of making it appealing. However, they failed in that regard, since the user interface of their Android devices were full of lag, and it demanded a lot of system memory which made the phones unusable at times. Therefore, they decided to make a huge overhaul with their new devices by removing the UI completely, and using Google's authentic user interface with some added features. It worked in their favor, since they have been getting good feedback about their new overhaul to the user interface. Conversely, Apple decided to stick to their conventional user interface with iOS 7, because the early iterations has been praised by many consumers in the past. Even though, they did some minor tweaks to the exterior looks, it operates similarly to the old versions of iOS. They followed the old adage "if it ain't broke, don't fix it", and it proves that product modification is something that has to be done after extensive research.

Apple's controlled approach to their operating system

Chapter 17 - Personal Selling and Sales Management

    Almost every business today is customer-centric. Motorola follows the same philosophy when it comes to marketing. They made a huge overhaul when they introduced their flagship device, Moto X last year, because it allowed the customers to customize the appearance of the mobile phone. It was something that consumers desired, since mobile phones lacked personalization. At the same time, Motorola's CEO stated in an interview that they always listens to the consumer's need as it is the base for their product's blueprint. It demonstrates Motorola's customer-centric approach to marketing.

    With their latest announcement, Motorola aims to generate leads for their new product line up this year. They introduced their new smart-watch with an exclusive advertisement on YouTube rather than publicizing it on conventional media. It allows them to gather feedback through comments, and see the expectations of their potential customers, and to change or add features according to that. Apart from that,  they held a public chat on Google hangouts where they answered many questions of people who were interested in the smart-watch. It provides valuable data about the potential customers which could result in favor of Motorola, since they are relatively new to the smart-watch business. 

Jim Wicks explaining the features of their new smart-watch which is due to release on this summer

    Since it's a mobile phone company, Motorola has the liberty to capture customer data directly from their mobile phones. The initial set up of a Moto X or any other Motorola smartphone asks the users consent to collect data from that phone, and these acquired data could reveal customer trends, such as what features they frequently use, and what is not. It also enables the users to send feedback about their new applications directly through the phone. These data could be used to change or add new features, and rectify issues in future releases that will benefit customers, and the company in the long run. Furthermore, interactions through social media, reviews, and comments from press gives valuable feedback to the company to keep or make changes to their products. The downside to this massive data collection is privacy breach. Therefore, the company abide by rules to collect those data anonymously in order to protect their customers private information. 

Chapter 16 - Advertising, Public Relations and Sales Promotion

      Motorola has invested considerable amount of money on advertising just as much as every other mobile phone company in the industry. However, it has gone in to great lengths to advertise products to the target market. It was well demonstrated in one of their latest advertisement for Moto X. They published an ad on the "Wired" magazine. It was not an ordinary advertisement. It was an interactive advertisement that allowed readers to select the color of the phone. An image of the advertisement is posted below for further review. It was an innovative approach, because they utilized a medium that lacks appeal to modern society, yet made it an interesting advertisement to promote their brand new phone.

When Readers tap the color tabs, the Color of the Phone Changes Accordingly 

Motorola also excels in comparative advertising. When Apple decided to make their own maps application, it ended up as a disaster since it navigated people to wrong locations, and in some cases to forbidden areas. Motorola capitalized on this failure to promote their new Droid RAZR M phone that was released consequently with a new advertisement called "iLost". It showcased that their new phone was significantly better at giving directions than the iPhone. Moreover, it was an effective advertisement which prompt other smartphone makers to create more comparative advertisement against Apple to great effect.

Motorola's Comparative Advertising Campaign 

  Celebrity endorsement is another advertising method used by Motorola in the past. The likes of David Beckham, Fergie have featured in their Moto RAZR advertisement to promote their products. David Beckham in particular took part in several Television advertisements which was targeted at the female audience, and soccer fans around the world.

Celebrity Endorsements

   Moreover, they heavily engage in consumer sales promotions where they offer product bundles at a bargain price. At the moment, you can purchase a no-contract Moto X phone for $399 bundled up with a free "Chromecast" that allows users to stream their music, photos, videos to TV. Add to that, you will receive a 30% off discount on accessories from their online retail store. It motivates potential consumers to purchase their main product, Moto X, and the accessories to go along with it.

Last week, they made an announcement about a new product category that they plan to introduce in this summer. It is a smartwatch called Moto 360, and they published a video which serves as a promotion and a sneak peak for their new product. This is already creating a huge buzz for their upcoming product, and it is an example for a pioneering advertising from Motorola.

Moto 360

Chapter 14 - Marketing Channels and Retailing

  When I was first confronted with this assignment, I was keen to find a Motorola retail store in New York, Later on, I found out that they haven't got any brick and mortar stores in the U.S. This gave me an opportunity to look in to other companies that excels in retailing. I finally picked Best Buy since I consider it as my second favorite place to buy electronic equipment after Amazon. I went in to their 86th Street store, arguably one of the busiest stores in Manhattan.

        

            As soon as I stepped in I recalled something that Professor Evans mentioned in the class. It was the smell of the store, the sense that matters most to a marketer. They certainly capitalized on that, since it had a pleasant smell for a busy store in the rush hour. I went in with the intention of inspecting the procedures in mobile department, and I was surprised by the crowd that was gathered in the mobile section. It had every latest gadget in the market today, and it was apparent that they lure customers from the hands on experience provided in their showrooms.

 From my short visit, I learned about their new price match service which allows the customers to match the prices of an item with other retailers, and purchase it for the bargain price. It demonstrates a clever tactic used by Best Buy to counter the rivalry from Amazon. 

                                                     Best Buy's 6 P's in Retailing

Chapter 6 - Consumer Decision Making

   Ever since the company was started, Motorola was a prominent contender in the mobile phone market. Their success among the consumers was seriously threatened when the iPhone was announced in 2007. Thereafter, Motorola tried various tactics to win back their customer base. Most of them were in vain, since non of them won over the customers that switched to other brands.

    However, after recent acquisitions, it has been introducing products that could change their fate in the mobile phone industry. When you evaluate the customer decision making process for a current Motorola product (Moto X), it would reveal the improvements that Motorola has made to make their products more appealing to the smartphone consumers.

   Today, smartphones have become a necessity, rather than a simple want among the consumers. A barrage of features have allowed consumers to do more than what they have imagined in the palm of their hands. As I have mentioned in the earlier posts, Motorola have taken a different approach to make smartphones. They have allowed their customers to create their own smartphone from the back plate to buttons. Most importantly, they have been able to keep the prices much lower than their competition. Those factors serves as a external stimulus that creates the "need" to buy their product.

   After the "need" is created, most customers do their research before purchasing the product. There are thousands of websites thats dedicated to review mobile phones and tablets, and those media outlets actively cover news regarding those devices. Some website leave it entirely to the customers to voice their opinion about the new phones they bought.

Even though, its labeled as user reviews, it is important to realize that it is difficult to find actual source on the internet. Anyone on the internet could create reviews at will. Therefore, it cannot be categorized as a non-marketing controlled information source, or a  marketing controlled information source.

Besides that, these outlets are being frequently used by smartphone consumers to pick the products they need. Also, YouTube is a popular source to get information about mobile phones.

Since their prices are lower than their competitors, customers are most likely to consider the Moto X over any other mobile phone. Moreover, features mentioned above are only available in Motorola phones. Therefore, it is highly unlikely to see customers evaluate alternatives in that price range.

Finally, after the purchase most customers have been giving positive feedback about the phone, except for some who had complained about the camera quality and other slight issues as you can see in the ratings above. Also, Many customers are glad to purchase this product, because it is an American made mobile phone. Most importantly, they are providing a great customer service from social media websites, and through their hotline. These services , and features that you get after purchase helps to satisfies Motorola customers in the long run.

Chapter 5 - Developing a Global Vision

Global Marketing

    Global marketing is an area where Motorola displayed a weak point as a company. Motorola has been marketing its products to U.S consumers ever since the company was started, but did not take any steps to market it outside the U.S. This issue prevailed until it was acquired by Google in 2012. After the acquisition, they introduced products such as Moto G which was targeted at emerging markets worldwide. They were focused to sell the Moto G in international markets with a low price point. 

   It was a successful strategy by Motorola, since Moto G did well in foreign markets as well as in the U.S.A. Additionally, one of Motorola's executive stated that Moto G is "the most successful, highest selling smartphone in Motorola's history." In contrast, they decided to keep the Moto X line up mainly in the U.S, even though there is a huge demand for it in Europe markets. 

  There is another factor that could play a huge role in their global marketing layout. The company was recently purchased by Lenovo which is a Chinese company that produces laptops and other electronic devices. This acquisition will benefit Motorola's long term global vision, since Lenovo is a hardware company that has strong ties with international markets. With their relationships, Motorola has a good chance of acquiring off-shore markets with minimum effort.

Lenovo's dominance in the international market & the smartphone forecast for coming years 

Job Outsourcing

   Motorola was in the center of debate when they outsourced their cell phone production facility in 2000. As a result, they laid off 1200 employees from Iowa and Florida production facilities. The  plan was initiated to cut down the manufacturing cost of Motorola's mobile phones. 

  However, they radically changed their approach in the recent years, as they decided to relocate a factory in the United States.  They resurrected an old Nokia factory to assemble their latest smartphone Moto X. Consequently, they hired 2500 employees to work in their factory, and they proudly advertised it as a product made in the U.S.A.  It was a bold move by Motorola, and it was admired by many Americans, since it opposes the trend of outsourcing local jobs. 

Workers At The New Motorola Factory 

Sources : New York Times: Motorola to Offer Moto G Smartphone Aimed at Emerging Markets

                Chicago Tribune: Motorola Outsourcing More Phone Output  

                The Verge: Made in America: A Look Inside Motorola's Moto X Factory

                

Chapter 4 - The Marketing Environment

Target Market

   In the early days, Motorola was mainly focused on selling its products to businessman worldwide. DynaTAC and StarTAC were used as productivity tools by the consumers, and Motorola successfully innovated those products to fulfill their customers needs. Prices were hefty, but their customers were willing to pay a premium, because of the added features. Hence, their target market was business personnel.


     However, they had a major setback after Apple's iPhone launch, and consequently lost the upper hand in the industry. Since then, they have tried to penetrate the market with various products ranging from low end to high end mobile phone market. Company's recent innovations seems promising, and it caters to both expensive, and low budget smartphone consumers. They have also added customization features that appeals to the young crowd.

Social Factors - Use of Social Media

   Motorola has been using social media tools, such as Facebook, Twitter, Instagram and Google + to communicate with its customers on a regular basis. Currently, Motorola customers have the option to get tech support and latest news from these social media outlets. They frequently use twitter as a place to publish their latest product promotions and discounts to customers.

 

 Product Promotions Through Twitter

    Recently, Motorola sponsored a promotion called "#MotoKandi Instagram Promotion."During the Sweepstakes Period, customers had to post a photo of either themselves at the "Escape from Wonderland Festival" or a picture of a bracelet from the Motorola Kandi Shop to their Instagram accounts including the hashtag #MotoKandi and mentioning @Motorola. At the end of the sweepstake, 7 contestants won cash codes for $50 where they could order tickets for concerts from a website called "Live Nation". This promotion was targeted at the young U.S demographic to draw their attention to Motorola's products. Moreover, it demonstrates Motorola's tactics of using social media as an advertising outlet.

An entree for #MotoKandi sweepstake

Sources : Facebook.com/Motorola

Chapter 3 - Ethics & Social Responsibility

     As a company that has been in business for more than fifty years, Motorola is in the limelight when it comes to corporate social responsibility. Therefore, Motorola has taken steps to ensure that they fulfil the needs of society at large. According to their website, they believe that "responsible business is good business." It simply expresses that their intentions are to gain profits while making a positive impact on society.

Sustainability

Accessibility Options in New Motorola Phones 

As for consumers, they have initiated a program to protect the privacy of their mobile phone users in a time where we have witnessed many privacy breaches in the United States. Motorola tries to accomplish this by a new privacy policy which informs the customers about the collection of data and how it is being used afterwards. It allows them to be transparent as a company that handles private data of millions of consumers every day. Furthermore, their design engineers have made phones with special features that allows people with disabilities to use Motorola phones with ease.

  

          Additionally, Motorola has taken the initiative to reduce the amount of greenhouse gases and carbon dioxide that emits from their facilities. They claim to have focused on sourcing energy from clean renewable sources such as wind power. Their ultimate goal is to help tackle the climate change and global warming as it is a global concern. Add to that, they have created a program where they recycle electronic devices for free of charge. This is an impressive program, since they are only obligated to recycle products that they sell in Europe. This program includes approximately 60 countries, and it allows any mobile consumer to send their device (not only Motorola products). Some devices are refurbished for reuse and then sent to developing countries where they are sold at a low price. They believe that it helps to boost access to communications. These initiatives validate that Motorola is practicing sustainability as a company.

Engergy Use of Motorola 

       Finally, Motorola has raised its voice against the controversial conflict minerals. Conflict minerals are minerals mined in conditions of armed conflict and human rights abuses, mostly in the eastern provinces of the Democratic Republic of the Congo, by the Congolese National Army, and various armed rebel groups. These minerals are essential components to create mobile phones: hence there is a rising demand for the substance. Motorola states they have implemented a due diligence program to identify and trace the minerals suppliers in their supply chain which allows them to buy conflict free minerals. They have also partake in a project called “Solutions for Hope” which is dedicated to source conflict free minerals as an organization. Moreover, they have engaged in many projects that serves to eradicate the conflicts surrounding minerals in Congo.

Mineral Mines In Congo

Cause-Related Marketing

        

  In 2007, Motorola joined with Make-A-Wish Foundation to create a cause-related campaign to promote its RAZR² handset and raise funds for the foundation. The campaign was called “RAZR² Wish Campaign”. Motorola donated $5 for each of the first 50,000 handsets that was sold, and to promote the campaign they engraved the battery cover with “WISH COME TRUE” slogan.
       

A Motorola Customer Supporting The Cause

   It was targeted at Motorola’s young customers and emphasized situations in which Motorola customers do good deeds. It was publicized on the internet, through posters and television with the tagline “Do something cool, do something good.” It was well received by the public, and eventually a total of $250 000 was donated to Make-A-Wish Foundation.

Sources : WPP:Campaign: RAZR2 Wish Campaign
               Motorola: Corporate Responsibility 

Chapter 2 - Strategic Planning for Competitive Advantage

Strategic Planning

Strategic planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving marketing opportunities. When you analyze Motorola's strategic planning in the past year, it is clear that they are focused to obtain new customers by providing a new set  of features and options from their latest products. Motorola's CEO Dennis Woodside emphasized in an interview that their new products stands as a feature packed and affordable mobile phone experience. This interesting take on smartphones is a result of strategic planning. It could affect the company's future and ultimately its financial success. 

This strategy of Motorola is evident in their new line of products. Their latest product, Moto X allow customers to build their own phone in variety of ways. It gives the option to choose unique colored back plates from several different materials. Not only that it also allows users to choose the colors for accents and buttons, such as volume rocker buttons, and power button for their device. They are currently advertising it as "a phone that's truly yours" since there are thousand ways to customize the Moto X. Moreover, it features voice activated commands which works from a proprietary SOC that always listens to the user’s voice when it’s turned on. It also has an attractive price tag of $399 which is considerably cheaper than what other companies offer. 

These features and options allowed them to differentiate their product from other leading brands, such as Apple's iPhone and Samsung’s Galaxy series. Therefore, Motorola earned a product differentiation advantage, since they were offering something unique and valuable to buyers beyond simply offering a lower price than that of the competition. 

Market Development

         
  Market development is a strategy that entails attracting new customers to existing products. Motorola failed to initiate this marketing strategy since they were focused on selling the Moto X exclusively in the U.S market. Therefore, Motorola was unable seize the foreign smartphone markets. They released Moto X in Europe on February 1st, after almost 6 months from the release. Add to that, Moto X is yet to make an appearance in the Asian market which has a grossing smart phone demand according to a 2013 Nielsen Research. In contrast, Apple’s iPhone and Samsung’s Galaxy devices were available to customers in Europe and Asia few days after U.S release. It helped them to gain the market share early, even though they did not offer the features that are available in Moto X. 

Diversification

Product diversification is a strategy of increasing sales by introducing new products in to new markets. Motorola implemented this strategy with their new product “Moto G”. It is a comparatively feature full smartphone at a remarkably low price. It has a similar design language to Moto X, but when it comes to price, globally unlocked Moto G costs only $179.This handy price tag targets emerging markets, such as Brazil, Chile and Peru. Moreover, it lures in customers with strict budgets, such as high school and college students. Motorola is not the first company to offer a cheaper solution for smartphone seekers, but the only difference is that Moto G is created with quality components compared to other phones in its category.  

Moto G

Sources : New York Times: Moto X Heads to Europe

                NIELSEN:The Asian Mobile Consumer Decoded

                New York Times: Motorola to Offer Moto G Smartphone Aimed at Emerging Markets

                YouTube: MKBHDHangout with Motorola CEO Dennis Woodside!
                YouTube: 5 Questions with Motorola CEO Dennis Woodside - CES 2014