Market Case Analysis for Verizon Case Study

Pages: 10 (2795 words)  ·  Style: APA  ·  Bibliography Sources: 5  ·  Level: College Senior  ·  Topic: Business - Advertising  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] The demographical segmentation of the target market will distribute the U.S. households into different age groups and circles of life. Age wise, the target consumers will constitute school going children and teenagers, college youngsters, housewives, professionals, and aged people. Verizon FiOS TV will provide more than 300 HD television channels from different categories like sports, news, music, entertainment, cartoons, informative, etc. Therefore, Verizon Communications will have to give an equal emphasis on promoting FiOS TV to consumers from every age group and life cycle category. Since U.S. has been observing a rapid population shift from rural to urban areas, the potential for growth in the highly populated areas is more attractive for Verizon Communications to promote and sell its FiOS TV (Verizon, 2013).

ii. Selection of Promotional Mediums for Verizon FiOS TV:

After defining the potential target customers for its FiOS TV, Verizon Communications will have to identify the most effective promotional mediums which can give it high return on marketing investments in a short period of time. Generally, television network service providers use their own TV channels and websites to promote their products and services. But Verizon Communications will also have to use some other mediums to attract new customers from the market. These mediums include radio, newspapers and magazines, bill boards, social media, etc. Moreover, Verizon Communications can take the services of business promoters, distributors, and other marketing agencies to promote its FiOS TV in all existing and new markets in the United States (Mu-hlbacher, Dahringer, & Leihs, 2006).

iii. Setting the Marketing Budget for Verizon FiOS TV:

Once the promotional mediums are selected for a product, the nest step is to allocate the available marketing budget to each of these mediums according to its effectiveness and significance for the product. For Verizon FiOS TV, the most effective medium of promotions would be television, radio, and newspapers. Reason being, these mediums have the greater rate of exposure and frequency by the general public. Secondly, they reach in every small and large area of the country regardless of its population density, available facilities, or infrastructure (Kotler, Brown, Burton, Deans, & Armstrong, 2010). Secondly, social media networking sites are also an effective medium to target the students and professional people category of the society.

iv. Marketing Planning:

The marketing planning process for Verizon FiOS TV will pass through the following four steps:

Conduct preliminary research to explore the potential target customers according to their demographics and frequency of exposure to different marketing mediums.

Run marketing campaigns on selected TV channel(s), magazines, and social media networking sites.

Conduct marketing audit at the end of every quarter.

Conduct a final marketing audit at the end of the year (Waterschoot & Bulte, 1992).

The Marketing Budget:

The Marketing budget for Verizon FiOS TV should be divided according to the following proportion:

Electronic Mediums (Television and Radio): 30%

Print Mediums (Newspapers and Magazines): 15%

Bill Boards and Displays: 15%

Social Media Networking Sites: 5%

Business Promotional Firms: 20%

Distributors: 15%

The proposed time schedule of marketing campaigns for the next 12 months is as follows:

Time Schedule for Verizon FiOS TV

Activity

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Preliminary Marketing research

Promotional Campaigns on Television Channels

Promotional Campaign on Newspapers and Magazines

Promotional Campaign on Social Media Networking Sites

Promotional Campaign on Bill Boards and Displays

Periodical Marketing audit (After every 3 months)

Annual Marketing audit (At the end of the year)

Distribution Strategies for Verizon FiOS TV

Verizon Communications will provide its FiOS TV service in all the rural and urban areas of the United States. However, it will target only large cities and town in the initial phase; and continue to expand the fiber optic network with the passage of time. The new and improved fiber optic will take time to spread across the country. Therefore, Verizon Communications will have to see a steady growth in the initial 12 to 18 months period. In order to promote and distribute its service in all the major locations of the country, it will have to make contracts with the large scale and renowned distributors (Luther, 2011). In addition to expanding the fiber optic network across the United States, Verizon Communications will also have to increase the number of customer service and facilitation centers. In the initial phase, it should open these centers in some large cities of the country (Lancaster & Withey, 2007).

The distributors that will be responsible for promoting and distributing the company's fiber optic network services in the potential markets of the country will be paid high commission for their services. They will promote Verizon FiOS TV throughout the year and will also facilitate the company in finding new business partners and value chain members for its new product lines.

Analysis of the Industry and Competition

Verizon Communication operates in the telecommunication and broadcasting industry of the United States and various other countries of the world. This industry is concentrated with a large number of small and large scale television network and internet service providers (Mu-hlbacher, Dahringer, & Leihs, 2006). The major competitors of Verizon Communications include NANOSAT, Dish TV, i-Link, HDTV, Tata Sky, Antennas Direct, Direct TV, Channel Master, etc. These are the leading satellite television network service providers in the world. They are posing direct threats for Verizon Communications in aspects of its business operations including customer base, sales and profitability, pricing strategies, marketing efforts, and distribution network. These large scale industry rivals are accompanied by numerous small scale low quality fiber and ordinary cable network service providers (Lamb, Hair, & McDaniel, 2012).

Verizon Communication has a competitive edge over satellite television network service providers in its pricing strategies. Verizon Communication sells its FiOS TV at very competitive rates which help it in targeting all the segments and income classes of the society. On the other hand, satellite TV networks are more focused on the upper middle and higher income groups. However, the small scale fiber and ordinary cable networks are attracting the potential customers of Verizon Communications through their low pricing and extensive marketing strategies. In the presence of this stiff competition from both satellite and cable network service providers, Verizon Communications will have to keep an eye on the consumer preferences and industry patterns so that it can compete with these competitors in an effective way. It should conduct marketing research on regular basis in order to judge what consumers expect from it and what strategic moves its competitors are taking (Kotler, Brown, Burton, Deans, & Armstrong, 2010).

Conclusion

Verizon FiOS TV is offered by one of the most recognized communication service providers in the world. However, the intense competition and consumer preferences are posing big threats for it in making high returns on investment. This marketing analysis was done to recommend the most feasible and cost effective way to Verizon Communications to compete in the market and make its product more successful and competitive among other television networks.

References

Kotler, P., Brown, L., Burton, S., Deans, K., & Armstrong, G. (2010). Marketing, (8th ed.). U.S.: Prentice-Hall

Kurtz, D.L., MacKenzie, H.F., & Snow, K. (2010). Contemporary Marketing, (2nd ed.). Toronto: Nelson Education

Lamb, C., Hair, J., & McDaniel, C. (2012). Essentials of Marketing, (7th ed.). Ohio: South-Western Cengage Learning.

Lancaster, G., & Withey, F. (2007). Marketing Fundamentals, (2nd ed.). U.K: Butterworth-Heinemann

Luther, M.W. (2011). The Marketing Plan: How to Prepare and Implement It. U.S.: AMACOM Division, American Management Association

Mu-hlbacher, H., Dahringer, L., & Leihs, H. (2006). International Marketing: a Global Perspective, (3rd ed.). London: Thomson Learning

Verizon, (2013). About Us. Retrieved on March 17th, 2013,… [END OF PREVIEW]

Four Different Ordering Options:

?
Which Option Should I Choose?

1.  Buy the full, 10-page paper:  $26.88

or

2.  Buy & remove for 30 days:  $38.47

or

3.  Access all 175,000+ papers:  $41.97/mo

(Already a member?  Click to download the paper!)

or

4.  Let us write a NEW paper for you!

Ask Us to Write a New Paper
Most popular!

SWOT for Verizon Communications, Inc SWOT


Verizon Wireless Term Paper


Starbucks the Company That I Am Writing Case Study


International Verizon Drivers of Globalization Research Paper


Financial Analysis the Company I Have Chosen Thesis


View 45 other related papers  >>

Cite This Case Study:

APA Format

Market Case Analysis for Verizon.  (2013, March 17).  Retrieved February 23, 2019, from https://www.essaytown.com/subjects/paper/market-case-analysis-verizon/9560687

MLA Format

"Market Case Analysis for Verizon."  17 March 2013.  Web.  23 February 2019. <https://www.essaytown.com/subjects/paper/market-case-analysis-verizon/9560687>.

Chicago Format

"Market Case Analysis for Verizon."  Essaytown.com.  March 17, 2013.  Accessed February 23, 2019.
https://www.essaytown.com/subjects/paper/market-case-analysis-verizon/9560687.