China Telecom Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: April 01, 2017

Marketing Strategy of China Telecom 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 China Telecom marketing mix, help the brand succeed.

China Telecom marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the China Telecom Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

China Telecom Product Strategy:

The product strategy and mix in China Telecom marketing strategy can be explained as follows:

China Telecom is one of the top most telecom service providers in China. China Telecom’s products in its marketing mix are based on Unified Communications, Bandwidth provider, Internet service provider, cloud based solutions, broadcasting and storage services, Data Center Engineering, Intelligent Building System, IT Service outsourcing and IT infrastructure development. International Toll Free Service (ITFS) The international 800 service includes outgoing and incoming international calls. The international 4008 service of China Telecom provides customers with one number (a 4008 number) for domestic access. When the service user has several public telephone numbers, they can register only one 800 number, which they can dial to get connected to different destinations. The Cloud Conferencing implements business functions based on cloud business platform, and supports multiple connection of many end equipment (fixed phone, mobile phone, SIP Terminal or PC Terminal) to conference system without configuration. Intelligent Building System (IBS) integrate computer technology, communication technology and IT to provide automated management for properties such as commercial buildings and residential areas. China Telecom provides its customers with tailored IT Infrastructure deployment schemes suitable for their business development.


Image: company website


China Telecom Price/Pricing Strategy:

Below is the pricing strategy in China Telecom marketing strategy:

China Telecom uses competitive pricing strategy due to competition present in the sector globally.

Products and services are sensitive in case of telecommunication industry since numerous competitors can take away the market share due to unique pricing strategy. China Telecom offers various packages such as Shanghai starter package, with benefits for customers offering internet packages with speed ranging from 4 Mbps to 200 Mbps. Also it offers bundled products in its plan that includes Xiaomi smartphone and its mobile internet services at a competitive price. Other 4 g mobile monthly plans include plans ranging from CNY 59 to CNY 399 that offers benefits in data usage, airtime and rebate. China Telecom’s Pay as you go plan is considered most affordable in China since it offers competitive options for domestic roaming via an add-on package. The company offers various packages depending upon the utility rate of customers.


China Telecom Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read China Telecom SWOT Analysis, STP & Competitors

China Telecom Place & Distribution Strategy:

Following is the distribution strategy in the China Telecom marketing mix:

It has its subsidiaries China Telecom Americas and China Telecom Europe operating in American and Europe respectively. China Telecom Americas is an authorized re-seller of Chinese telecom products to North American companies providing access to Chinese telecom network assets for customers in the United States, Canada and Latin America. The company supplies multinational corporations with Internet, Cloud Solutions, Managed Services and more by leveraging its ChinaNet, and global transport network. China Telecom has an English Online Store which is hosted by China Telecom Beijing Branch which is a e commerce store that allows international customers to purchase China Telecom products and services using their international credit cards via Internet. The various products sold online are: ChinaNet Wi-Fi, Refills, Mobile Broadband and Mobile Phone services.

China Telecom formed a strategic partnership with SAP to offer a cloud-based version of SAP's business software to small and medium companies across China.


China Telecom Promotion & Advertising Strategy:

The promotional and advertising strategy in the China Telecom marketing strategy is as follows:

China Telecom actively promotes though televisions, Radio, Billboards and Internet as a part of its marketing mix strategy to create brand awareness. The website also acts as an element of promotions where customers can actively seek for product information and compare various plans. China Telecom has wider network distribution as compared to other players in China and its geographical reach has brought numerous customers on board. Being one of the largest SOE in China it has captured the large market share of subscribers and dominates the telecom industry in China. Billboards are used across the country to promote their products and services. China Telecom make use of social media marketing like Facebook and Twitter to create awareness about its products with various contests and product plan briefing videos. It runs numerous ad campaigns for promoting its products and services.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of China Telecom.


Process:

China Telecom has it’s headquarter in Shanghai, China and most of the operation takes place from it. The process setup by China Telecom is simplified and easily accessible by the customers. They do provide customer support number for any kind of assistance and can be reached from any part of the world. Due to various customer friendly processes adopted, speed and accuracy of the service makes it number one choice for the customers.


People:

In service industry, high level of interaction takes place between people and various stakeholders involved. China Telecom has utilized its resources efficiently to satisfy customers. They always provide training at its staff and agent level both, to make them equipped with new technology and processes. For its employees, they do provide incentives at regular intervals to keep them motivated.


Physical Evidence:

China Telecom has operations spread across China and in parts of America and Europe. The company has stores spread across various locations and they have also come up with punch lines that attract customers to its services and products. They always come up with financial reports annually and quarterly. Hence, this gives an insight in the China Telecom marketing mix.


About China Telecom:

China Telecommunications Corporation is a Chinese state owned telecommunication company. It is the third largest mobile telecommunication provider and the largest fixed-line service provider in China. The two major holding companies are China Telecom Corporation Limited and China Communications Services Corporation Limited. China Telecom was given CDMA 2000 license to expand its business to 3G telecommunication across China. China Telecom Americas and China Telecom Europe are the major subsidiary companies of China Telecom.

It has the largest single Wi-Fi wireless broadband network in China and is operated under ChinaNet brand. As at the end of 2015, China Telecom had wireline access lines in service of about 134 million, wireline broadband subscribers of about 113 million and mobile subscribers of about 198 million.

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 China Telecom. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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