Case study-One Touch Camera Phones

The popularity of the camera phone has been boosted by more people owning mobile phones (cell phones), and people finding new uses for the mobile phone camera images. These vary from sending pictures of broken plumbing fixtures to plumbers to taking pictures of car number plates after hit and run accidents.

Latest figures from analysts have predicted 80 million mobile camera phones will have been sold globally by the end of the year 2007. In a four-month period in Japan alone, 90% of mobiles sold had inbuilt  camera technology, said mobile phone company The One Touch Corporation. Global camera phone sales only reached 18 million in 2002 mainly because Multimedia Messaging Services (MMS), allowing pictures to be sent from one phone to another, were only introduced towards the end of that year.

As more people buy picturephones new uses are being identified, according to Texty, a website which monitors mobile phone trends. In a review of top uses for camera phones this year, Texty has found exs ranging across business and personal uses for the new technology. New trends like "digital shoplifting" have become an increasingly tricky problem in Japan, where pictures from fashion magazines have been photographed and sent to friends who then copy the designs.

At music concerts many users send photographs as well as sound recordings to friends instantaneously. Property agents have used picturephones to send potential buyers photographs of houses, flats, etc, and emergency services have made use of camera phones to send images of injured people to hospitals before their arrival.

Hairdressers have even been letting customers download shots of possible hairdos to show their friends before being restyled.

There has also been a substantial growth in "mobile blogs", or moblogs, which feature photographs of events as they happen. There have been more serious sides to camera phone use though, which have  touched on sensitive privacy issues.

Around the world, gyms, cinemas and offices have banned the use of camera phones after complaints about invasion of  privacy. Despite this, some analysts predict that by 2010, almost half of mobiles sold worldwide will include a camera.

"With image quality and picture snapping features improving with the launch of each model, it is clear we have yet to discover the full extent of how private individuals and businesses will find ways to use them," said a spokesperson for Texty.

You have recently been appointed as a marketing executive for the One Touch Mobile Camera Phone Division, reporting directly to the Marketing Director.

problem 1: In order to be successful in the mobile phone market the One Touch Corporation believes that it needs to be marketing oriented.

a) describe three advantages of a marketing orientation to companies.

b) List four marketing activities which can contribute to successful marketing orientation of “One Touch Corporation”.

problem 2: Effective segmentation of the market is important if mobile camera phones are going to be successful.

a) describe three bases for segmenting the consumer market for mobile camera phones.

b) describe the benefits of market segmentation, using exs that might be suitable for the mobile camera phone market.

problem 3: Your Managing Director has asked you to prepare a presentation for the staff of the marketing department who have no  experience of marketing research.

Produce brief notes for the presentation that answers the following problems:

a) Define the term ‘marketing research’.

b) Distinguish between 'primary research' and 'secondary research'.

c) Outline and describe three main methods of data collection which can be used in primary research for the mobile camera phone market.