Telecom Revolution Through Marketing

Published by MBA Skool Team, Published on July 02, 2012

Telecommunication Industries in India are the fastest growing sector. This market plays a vital role in the development of the economic condition of the nation. Increasing the income levels, it provides a huge opportunity for foreign investment. It faces real challenges at each time in today’s world.

There is an exponential growth in the usage of mobile telephony. The growth of the cellular users has exceeded that of the fixed line subscribers. The introduction of digital cellular service and decrease in regular tariffs are due to competitive pressure .Brand competitors are planning to grab their promising customers by adding a “delight factor” on their services. The main ideal thing for this is The change.

Each telecom company tries to win the race in the market. By different strategy and planning, current telecommunication marketing environment has become a political marketing campaign. Telecommunication marketing strategy makes the industry to understand the key concept such as the products and services evolution curve, the importance of the pricing planning and the crucial role of innovation both commercial and technical. Unique way of doing the business or service helps the telecom industry make a strong position in the market. If we consider marketing as a political campaign and each telecom industry as political party, then the customers are regarded as  the voters. So to get the maximum vote, telecom companies try to make their campaign best.

The main telecom companies those are providing value to the telecom sector of India are IDEA Cellular, Vodafone, Reliance communication, Tata teleservices, Bharti Airtel,Aircel,Uninor,MTNL,Loop Mobile,BSNL.  The telecom industries serve the services on Local calls, National calls and international calls. GPRS service is provided for the mobile sector and broadband service is served for the landline sector. The main flexible strategies that the telecom industries have built are based on  :

  • Providing more Value Added Service at aggressive prices.
  • Entering into each other’s dominant areas and ensure own position.
  • Providing more option to a single product like different attractive offers for STD calls.
  • Price war among each other to provide the best service at cheaper price. Like to decrease the tariff according to the customer’s need.
  • To attract the retailers as much as possible, so that the company will not lose the loyalty and trust of the retailers.
  • Aggressive advertising is done by the telecom companies to make their position strong in the market.

Some Businesses think that they can make their own plans and ignore competition. While others are very much inclined to make completion by tracking the move of the competitors, copying their business methods and making the changes according to that. Porter’s five force model can be used to analyze the strategy of the telecom marketing. It includes the threat of the new entrants, the threat of the substitute, the bargaining power of the customers and bargaining power of the suppliers.

Rapid customer attraction is the main reason of marketing campaign. The survival of any  business depends on its ability to retain its customer. Companies are on a race to increase their market share. Maximize their profits, enhance customer satisfaction. Every company tries to get the attention of the customer by making the Retailer as the main target. Different companies are providing various “Retail engagement programs”. This program builds the partner channel more productive and effective. various medium are there for effective retail management like market research, personal calling, customer care help line.

By analyzing the data getting from the market, every company designs  a plan which competitors are already using and proposing a new offer to attract the retailers. Different Retail engagement programs are currently available on market. Vodafone offers Mera Offer which is based on the currencies which is called the Vodafone currency. Company gives a target to the the retailers, after the achievement of that target, Vodafone currency is added to the retailer’s account. Various gifts are provided based on the points.

Regular retailer meet is there at regular interval of time. Top retailers are provided with different schemes and free outing. Certificates are given to them and this gets displayed in their shops. AIRTEL offers Navartna retailer contest. Company gives gifts on achieving the target. AIRTEL Premier League is based on the point system. Recognition is given to the retailers on Airtel journals. UNINOR is organizing one display contest in which the retailers are getting one mobile phone if they will display more leaflets and posters on their shops. They also make happy the retailers by involving them in the lucky draw coupon contest.

Similarly, Tata Docomo also provides free talk time offer to the retailers on achieving certain Activation target. In this manner, different companies make their position safe in the market. Retail engagement program is one of the marketing strategies of the telecom companies now a day. Every organization needs a targeted, high level marketing training to strengthen its position in the business.

Smart marketing makes the business more productive. Launch of advanced telecom services, such as 3G, IPTV,VAS are getting better in the course of time due to competitive marketing. The telecom market is so sensitive that if proper and effective campaign is not offered, then it will likely a long wait for the next opportunity to back in track. Having the right marketing tool can lock the customer relationship without any churn out.

Low pricing offers, dealer management, network optimization and sales promotions are the outcome of the completion. Loads of innovations like outsourcing of networks, focus on prepaid Ongoing marketing plans comprise different clients and establishes alliances with service related companies, so that better quality product can be came out  to the business. Marketing strategy involves promotion strategy, competitive edge, business alliances, pricing strategy.

So the whole marketing scenario of telecom sector has become a political ground on which each company in terms of politician want to gain maximum vote from the customers. It is really in favor of the customer as the maximum benefit is for them only. Prices declined significantly over the years and the base value of the demand increases. Telecom Marketing presents the methods implemented by the marketers through all the medium like wireless, cable, fixed lines to gain customers and reduce the churn.

How do the consumers acquire one’s service, what will be the methods to attract the customers to avail one’s service, How do the company maintain the loyalty of the retailers, how do the company reduce the churn out rate of the customer, How to make the company different from the competitors. All these questions help the telecom industries to compete with each other and plan out new strategies for the market. Indian telecom sector is a prepaid market with low ARPU(Average Revenue per unit) and high minutes of usage(MoU). Tariff war plays the main role in marketing. Each industry is providing the call charges on second basis now. Regulatory issues are there on Mobile number portability and on auction of 3G licenses.

They have built marketing strategies based on customer’s their behavior and demographics. Each one makes advanced analytics to predict how to acquire the customer with highest lifetime value. Targeting Indian customers by the celebs and big names is another plan to drive up the business and to match the completion practice. Loyalty incentives, customer centric plans in true sense are the part of long term strategies. Advertising campaigns revolves around for value communications. Event creation for different activities for customer services like CRM tools / high speed internet service. A level of trust , relation has to make for further interaction .By analyzing the marketing strategies of the telecom industries, one can make out that all they need is a gentle push to move in the right direction.

This article has been authored by Smruti Priyadarsini from SCIT.


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