Published by MBA Skool Team, Last Updated: December 05, 2016
Marketing Strategy of DirecTV analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on DirecTV marketing mix, help the brand succeed in the market.
DirecTV marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the DirecTV Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in DirecTV marketing strategy can be explained as follows:
DirecTV us is one of the leading global direct broadcast satellitite service providers. The following are packages offered as a part of the marketing mix product strategy by DirecTV:
• DIRECTV PACKAGES: English TV packages, Spanish TV packages, internet and phone bundles, Business packages
• PREMIUM NETWORKS: HBO, Showtime, Cinemax, Starz
• INTERNATIONAL PACKAGES: Spanish, Filipino, Korean, Vietnamese etc.
• SPORTS PACKAGES: NFL Sunday Ticket, MLB extra innings, NBA league pass, NHL center ice etc.
DirecTV also offers following equipment and features
• Equipment: Genie, receivers, Remotes, Connect to the internet
• Features: stream DIRECTV, DIRECTV Cinema, Whole-Home DVR, on Demand, Advanced Features, DIRECTV mobile apps, DIRECTV, text alerts
• Services: Protection Plan, DVR, HD, 4K
DirecTV packages have the largest market share and a very limited growth and hence they generate most amount of cash to the company. Premium networks and sport packages also have high market share but the growth rate is very high and hence consume a lot of cash for its promotions. International packages growth is very high but the share is very low and hence do not generate much cash for the company.
DirecTV Price/Pricing Strategy:
Below is the pricing strategy in DirecTV marketing strategy:
DirecTV follows competitive pricing strategy.
DirecTV provides direct packages at a cheaper and affordable price to all its customers. The special packages such as premium channels, international packages, and sports packages are charged extra depending on the channels subscribed. Sometimes customers have to pay separately for certain channels to subscribe to them. HD and 4K services are priced at a premium although similar to its competitors.
As can be seen from the above graph, DirecTV has the largest market share as compared to its competitors. By pricing its packages low as a apart of its marketing mix pricing strategy, they are making profit through economies of scale. The consumers are also given an opportunity to customize their packages according to their needs.
DirecTV Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read DirecTV SWOT Analysis, STP & Competitors
DirecTV Place & Distribution Strategy:
Following is the distribution strategy in the DirecTV marketing mix:
DirecTV sells its equipment through retailers. On its website, there is an option to find the closest retailer to you. Each receiver has a unique code. There is a 24*7 customer care number through which a consumer can change and update plans according to their needs.
DirecTV also sells its products and equipment online through E-Commerce websites such as Amazon which provides a convenient platform for its consumers to order the equipment online without the need to find a retailer. DirecTV also indulges in B2B markets.
It partners with various hotel chains, companies, restaurants to use only their equipment and services.
DirecTV Promotion & Advertising Strategy:
The promotional and advertising strategy in the DirecTV marketing strategy is as follows:
DirecTV comes with TV commercials comprising of characters from popular movies and television shows to convey to the audience about DirecTV’s excellent service quality and the number of channels available in high definition as compared to its competitors. These commercials also take a shot on the lack of service by the cable operators.
DIrecTV also indulges in Sponsorships
• New York City’s Vulture Festival to promote its two original TV series: Kingdom and You Me Her. This would attract young entertainment fans.
• Sponsorship for new sports on earth site for its first month. The deal includes display ads throughout the site and a presence on the front of the USA Today sports section.
DirecTV also engages in digital and social media promotions to attract the young crowd.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of DirecTV.
DirecTV has a wide diversity of workforce. Special efforts are put to attract and retain the employees with special experiences and perspectives. Employees are motivated to share their ideas and innovations and thus everyone is engaged to make the organization, a leader in the marketplace. The employees follow the company values. DirecTV follows a multidivisional approach where divisions are made around the product and geography with functional expertise.
DirecTV being a service provider, has several processes in place for business operations. Customer complaints are given prior importance. There is a 24*7 DirecTV customer helpline number which the customers can use to pay bills, order movies and refresh the receivers among other requirements. There is also an online chat option to ask queries to the experts and a prompt reply is given by them. The customer care also provides services such as FAQs, troubleshooting, system manuals and demos. In case of any breakages and faults, the DirecTV company personnel come to the desired location to fix it at the earliest.
DirecTV’s head office is located at California, USA along with offices in New York and Denver. The DirecTV office premises are state of art architecture thus signifying innovation and latest technology. The dish panels are of high quality thus withstanding all forms of weather and climatic conditions. They last for years avoiding need for replacement thus showing quality and trust towards its customers. Hence, this summarizes the marketing mix of DirecTV.
DirecTV is an American direct broadcast satellite service provider. It is currently a subsidiary of AT&T. DirecTV provides television services to its subscribers through satellite transmissions.
Its main competitors include Comcast, Netflix, DISH Network, Verizon among others. It generated a revenue of $39.1 billion in 2015.
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.
Browse marketing strategy and 4Ps analysis of more brands similar to DirecTV. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.