Marketing Strategy of Verizon analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Verizon marketing mix, help the brand succeed in the market. Let us start the Verizon Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Verizon marketing strategy can be explained as follows:
Verizon, as being a telecommunication company with a good network provides many products in this domain such as retail connections, 5G connectivity, 4G LTE devices, Fios Internet, Fios Vedio. Verizon's product and services are mainly classified into 3 categories namely, wireless, residential and business. These cover the product strategy in the marketing mix of Verizon.
The further divisions of these categories are given below:
• Wireless: devices that involve wireless connection i.e. smartphone, wearable techs, home solutions etc.
• Residential: services that a residential customer would want i.e.
Fios Internet, Fios TV, Fios Digital Voice
• Business: provides technical solutions for business success and the basis of innovation - internet of things, cloud, security, networking etc.
The brand has also collaborated with mobile manufacturers like Apple to deliver 5G services in 2021. The brand has also strengthens its business by strategic acquisitions of search engine and video conferencing brands.
Verizon Price/Pricing Strategy:
Below is the pricing strategy in Verizon marketing strategy:
Verizon Wireless provides quality services to its customers but it’s not at the lowest price. Verizon quote higher prices on the bases of their service quality and features provided.
This gives an understanding of the pricing strategy in its marketing mix. As per the statistics of data usage of the customer over the past year, there has been a substantial increase, thus they have come up with plans that would cater to the needs of today’s customer which will obviously be higher than previous data plan. As the US mobile market has already reached a point where further penetration is almost impossible Verizon finds it difficult to start quoting high prices as it would lead to loss of business. Keeping these factors in mind the prices are formulated. Verizon has limited or stopped the device subsidies in which the payment of the device was coupled with the service prices. It believes in providing services and devices that will give the correct value to customer for the price he pays.
Following is the distribution strategy in the Verizon marketing mix:
Verizon Enterprise Solution has its reach all around the world which also includes majority of Fortune 500. They mainly deal with products which are IP oriented. Its IP network covers 150 countries in different zones of the world. Its website enables a user to browse and understand how their solutions are formulated based on the region wise. The company has several company owned stores, which offer complete service to customers.
Verizon's website also offers all plans and services for customers and enterprises to access.
Verizon Promotion & Advertising Strategy:
The promotional and advertising strategy in the Verizon marketing strategy is as follows:
As the competition increase and switching cost of consumers is less Verizon is promoting the idea of not getting limited to unlimited plan. Verizon has come up with plans from the study of customer data usages. To increase the transparency in charging the consumer it has focused on the use of its smartphone app where the consumer can monitor the data usage, change features of the selected plan and switch between plans without penalty. Verizon launched campaigns like "Humanability campaign", "Better Matters" etc. These campaigns focused on online advertising, internet of things, smart cities and using technology for the better of the customer's future. The Verizon campaigns also included creation of technology-driven models meant for young people and students to learn skills that would be useful in securing jobs of the future.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Verizon.
Verizon has an interactive website which provides details about its various services and where customers can buy the services. Verizon also has stores therefore they serve as physical evidence. Since Verizon is a telecommunication company hence its communication networks such as also serve as physical evidence.
Verizon focuses a lot on customer satisfaction. Recently a survey ranked Fios Internet as the top internet service provider in 3 out of 4 regions. Verizon considers customer loyalty as a very important performance matrix. It is improving the interface with customers and making it easier to interact and transact. Lowell McAdam is the chairman and CEO of the company. The company has more than 100,000 people employed with the organization.
Verizon works to simplify its various processes and do away with complex procedures. They have simplified complicated wireless and data plans into simple bundles of small, medium, large, extra-large which are very easy for customer to understand and use. Verizon has streamlined its business processes to cut cost to improve productivity and profit. This summarizes the marketing mix of Verizon.
Verizon is a telecommunication company which deals in wireless services. The mission of Verizon depicts its desire to connect people and the business. It works towards its mission by providing quality service at a competitive market price. The wireless department provides reliable 4G LTE network. Verizon has 100+ million retail connections and 100+ million postpaid customer base. In the year 2015, the company had a merger with AOL Inc.
AOL did its business in the field of content and advertising. As Verizon is keen in keeping up with the new technologies it found merging with AOL as an opportunity to tap into market of content and digital advertising which would enrich future revenue sources.
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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