Tencent Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Tencent analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Tencent marketing mix, help the brand succeed in the market. Let us start the Tencent Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Tencent Product Strategy:
The product strategy and mix in Tencent marketing strategy can be explained as follows:
Tencent is one of the leading Chinese companies which has a strong foothold in the technology and investment sector. Tencent serves as an umbrella brand to a number of sub-businesses which include – Social networking app QZone, Mass Media Web Portals, E-Commerce, Web Browser, Antivirus Software, Artificial Intelligence, Music app, Payments system, Film Production and Multiplayer Game development.
On Tencent music app there are over 700 Million active users, and similarly all the other fronts enjoy a same or more traction as well.
Image: flickr.com/photos/chris-yunker/
Tencent Price/Pricing Strategy:
Below is the pricing strategy in Tencent marketing strategy:
As it goes with any conglomerate, the price for every product depends on the user base and the investments made to develop that front. Tencent is into many internet related businesses and hence faces serious competition.
The pricing strategy needs to be predatorial and needs to have a competitive edge. For services, the price is maintained on a subscription base. Users can pay up a one-time token amount and enjoy the services for a longer duration.
Read more about Tencent
Tencent Place & Distribution Strategy:
Following is the distribution strategy in the Tencent marketing mix:
All the Tencent products are internet based and so most of them can only be accessed through an app or by visiting the website. They even have an e-commerce portal which deals with a number of other products in their inventories. Once the order is placed online, products are delivered to one’s abode. Tencent also deals in videogame development. These games can be bought online and repurchased as every new edition is released. Tencent is online heavy.
So heavy that it even started China’s first online bank called WeBank.
Tencent Promotion & Advertising Strategy:
The promotional and advertising strategy in the Tencent marketing strategy is as follows:
Tencent is promotion heavy and most of it is done through public relations. Tencent markets the discounts they are offering on various applications through the applications itself. The wide product portfolio in its marketing mix includes social networking websites, mass media, ecommerce, softwares, online games etc. Complete freedom is given to each and every subsidiary to practice its own promotion strategy. Like Riot Games markets its video games at its discretion. The social networking website has its own reach which forms altogether a different audience. In fact, other brands with advertising needs have reached Tencent’s door steps to advertise. With the online clout that Tencent maintains it is an advertising powerhouse.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Tencent.
People:
Tencent employees over 38,000 individuals across all its divisions. Each front has its own hiring policies and each front needs technologically forward individuals. Tencent is based out of China and has maximum number of employees as Chinese.
Process:
Process followed by Tencent is pretty simple as all its services are Internet based and when it comes to the digital front, processes can be carried out at an ultra-fast speed. Each subsidiary decides its own process and the revenue generated goes into the pocket of that subsidiary. Financial planning is something that is done by the top management and how the investments are used are decided by the board members, who later communicate the same to hierarchy that follows.
Physical Evidence:
As physical evidence we have the number of financial reports and accolades that prove that Tencent is a giant and will continue to compete with some of he biggest companies in the world. Some of the services are tangible like Videogame CDs and products ordered online, while rest of it is experiential based. This completes the marketing mix of Tencent.
About Tencent:
Tencent is a China based Investment firm that has subsidiaries that all deal in internet based services and products. As of November 2017, Tencent is Asia’s most valued company and is worth HK$4.7 trillion.
Today, it stands shoulder to shoulder with some of world’s biggest companies –Alphabet, Apple, Microsoft and Amazon. Tencent has even been considered the company that invests heavily in innovation by Boston Consulting Group.
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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