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Marketing For Telecommunications Projects

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This study provides the factors that should be considered in Telecommunication project

This study provides the factors that should be considered in Telecommunication project

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  • 1. Marketing for Telecommunications Operators ProjectsSergio CruzesMBA in Project Management and Technological Innovation – FIPE USPMsC in Electrical Engineering – EESC USPPMP certified
  • 2. Table of ContentsTable of Contents ................................................................................................................ 21. INTRODUCTION ...................................................................................................... 32. CONTEXT .................................................................................................................. 43. END USERS ............................................................................................................... 54. BROADBAND OFFERINGS .................................................................................... 75. MACRO ENVIRONMENT........................................................................................ 8 5.1 Social and Cultural environment .............................................................................. 8 5.2 Demographic environment........................................................................................ 8 5.3 Economic environment ............................................................................................. 9 5.4 Technological environment .................................................................................... 9 5.4 Political environment ............................................................................................ 116. INTERNAL MICRO ENVIRONMENT .................................................................. 127. KEY SUCCESSES FACTORS ................................................................................ 138. BUSINESS SUMMARY FRAMEWORK ............................................................... 149. BUSINESS CONCEPTION ..................................................................................... 15 9.1 Business Plan Definition ......................................................................................... 15 9.2 Strategic Planning ................................................................................................... 16 9.3 Purpose of the Organization: Vision, Mission, Believes & Values, and Objectives ....................................................................................................................................... 18 9.4 Generic Competitive Strategies .............................................................................. 19 9.5 Marketing Strategy.................................................................................................. 20 9.5.1 Marketing Plan Definition ............................................................................... 20 9.5.2 Market Segmentation ....................................................................................... 21 9.5.3 Marketing Mix ................................................................................................. 2310. REFERENCES ...................................................................................................... 25
  • 3. Acronyms and Abbreviations2G Second-generation mobile network technology3G Third-generation mobile network technologyAAA Authorization, Authentication and AccountingADSL/DSL Asymmetric Digital Subscriber LineARPU Average Revenue per UserBTS Base Transceiver StationBWA Broadband Wireless AccessCAGR Compound Average Growth RateCapex Capital ExpenditureCDMA Code Division Multiple AccessCPE Customer Premises EquipmentCRM Customer Relationship ManagementDOCSIS Data Over Cable Service Interface Specification (Cable Modem)DSL Digital Subscriber LineEVDO Evolution Data OnlyFTTH Fiber to the HomeGbps Gigabits per secondGSM Global System for Mobile CommunicationsHSPA High-Speed Packet AccessIBGE Brazilian Institute of Geographic and StatisticsIEEE Institute of Electrical and Electronics EngineersIMS IP Multimedia SubsystemIP Internet ProtocolIPC Potential Index of ConsumptionIPTV Internet Protocol TelevisionLTE Long Term EvolutionMIMO Multiple-Input Multiple-OutputMMDS Multichannel, Multipoint Distribution SystemOFDM Orthogonal Frequency Division MultiplexingOPEX Expended CostsPC Personal ComputerPMP Price per Megahertz per PopQoS Quality of ServiceRAN Radio Access NetworkSLA Service Level AgreementVDSL Very High Bit-rate Digital Subscriber LineVoIP Voice over IPxDSL any type of DSLWBS Work Breakdown StructureWiMAX Worldwide Interoperability for Microwave Access
  • 4. 1. INTRODUCTION This job consists in providing the factors that influence the marketingactivities concerned with new projects in Telecommunications Operators. It isthe marketing related to the strategic planning of the organization. The study begins with the analysis of the micro-environment followed bymacro-environment analysis. Other factor to be analyzed is the technologicalenvironment that concerns with the availability of user devices.. On the legal-political environment, aspects such as spectrum availability and restrictionsshould be considered. Keywords: Marketing ♦ Strategic Plan 2. CONTEXT The service growing rate of circuit switching telephone systems is startingto decrease in Brazil and Latin America. So, Telcos are investing in fixed broadband access technologies which areshowing high growing rates. Also, Cellular operators are also noticing a decreasing on their growingrates for voice services. At the same it is very difficult to provide differentiatedvoice services. The price competition is one main drivers of the voice revenuestagnation. For most cellular operators in the world, the mobile data revenue hasreached more than 30% of the service revenues while in Brazil there is still roomto grow.
  • 5. 3. END USERS For the end-user media consumer, the open TV main content provider inBrazil. However it is beginning a trend to search for different forms to accesscontent , entertainment or information, at devices such as PCs and mobiles. The group of users that is constantly searching for information on differentchannels other than TV, is composed of persons under 35-year old (Accenturestudy published at Converge Magazine in 13/April/2009). A study done by Yankee Group and Ericsson shows that the 3G user inBrazil is predominantly young (Teletime news, 29/July/2009). The social classes in Brazil are distributed as per Exhibit 5.1 (source:Associação Brasileira de Pesquisas, 2009) Family average income per month (Reals) 16000 14400 14000 12000 10000 8100 8000 6000 4600 4000 2300 1400 2000 950 620 440 0 A1 A2 B1 B2 C1 C2 D E Exhibit 3.1 – Social classes in Brazil and family income per month Based on a report of the Exame magazine (08/April/2009) about theconsumption of the Brazilian families and IBGE information, it can be derived thatthe social classes in Brazil are distributed as per Exhibit 5.2.
  • 6. 30,00% 25,40% 25,00% 21,80% 20,70% 20,00% 15,70% 15,00% Percentagem Brasil 8,90% 10,00% 4,10% 5,00% 2,60% 0,90% 0,00% A1 A2 B1 B2 C1 C2 D E Exhibit 3.2 – Social classes percentage in Brazil In order to better estimate the total potential users based on income salary,the table 5.1 simplifies the number of classes. The total potential number in Brazilis 15,789 thousand users. Percentage of People Wireless the Brazilian between 20 - internet Potential Classes population 30 years old (potential) users A and B 29.60% 11,248 85% 9,560.8 C 42.50% 16,150 30% 4,845 D and E 28.00% 10,640 13% 1,383.2 Table 3.1 – Potential internet users in Brazil based on the income salary
  • 7. 4. BROADBAND OFFERINGS The cable modem access reaches only 184 cities representing 74 millionpeople, or 40% of Brazilian population which represents 53% of total Brazilianconsumption in accordance to the IPC/Target. While the broadband competitiveness is so tough, the end user has fewchoices. The leader subscription service is called Speedy (from Telefonica and itis present only on the state of São Paulo). The exhibit 4.1 depicts the main fixed broadband offerings in 2009. Fixed Broadband Operators (in thousand subscribers) 2460 2500 2120 2000 1920 1762 1500 1320 1000 500 402 80 0 Telefonica NET Oi Brasil Telecom CTBC GVT TVA Exhibit 4.1 – Fixed Broadband Operators in 2009 An analysis done by IDC in July 2008 (published atwww.puccamp.br/servicos em 06/07/2009), provides the broadband accessprices in Brazil. The average price of minimum throughput (128 Kbps) was US$30. In Argentina, 512Kbps was US$ 27.05.
  • 8. 5. MACRO ENVIRONMENT As per KOTLER (1995, p. 49), the macro environment consists of theforces that affect the whole micro environment: demographic, economic,technological, natural, political and cultural. 5.1 Social and Cultural environment The cultural characteristics of the areas to be serviced by a wirelessbroadband business are very non-homogeneous. The service should besegmented during the implementation phase only. The final goal is to provide aservice that is not focused for specific population profiles . 5.2 Demographic environment The demographic environment is a very important force since it consists ofthe population profile in terms of its age, ethnics, immigration, education level,lifestyle, etc.. As these trends are out of control of the company, it is important toanticipate the movement of the trends, to develop scenarios and to provide aconstant adjustment on the market strategies. The observation of the demographic environment trends allow to developgeographic, ethnics, income salary and age segmentation strategies. The geographic segmentation is extremely important for aTelecommunication Operator deployment project. It allows identifying areas withgreat growth potential and low level of competition. It is on these areas that thedeployment should start.
  • 9. 5.3 Economic environment The main implications of future changes on the economic environment arerelated to the demand. The demand is very sensitive to the variations of theeconomic activity and any well defined plan may fail if it ignores the influence ofthe economic environment. Brazil, which has the fifth greater population and the eighth consumermarket in the world, it is becoming one of the best options for business in theworld. The internal market growth and the continuous class C expansion haveboosted the consumption in Brazil. As per magazine Exame (08/April/2009), the Class C spends its incomesalary as: • 21% at commercial establishments (supermarket, drugstores) • 11% with transport (bus, subway, gasoline, taxi) • 10% with food (restaurant, groceries, snack bars) • 8% with entertainment (gifts, sightseeing, internet) • 7% with basic services (telephone, light, water, house rent) Based on this scenario, it is expected a high demand of broadband services on the next years. 5.4 Technological environment At highly competitive segments, the technology is a key determinant factorfor the business continuity. The innovations which aggregate product andservice value affect the end user perception, creating a maximization of the costbenefit and an increase on the competitive advantage.
  • 10. The main deployed technological solutions to offer broadband services inBrazil is the UMTS with its HSPA platform. Other mobile technologies that offerwireless data are GPRS and EDGE from GSM networks and 1xRTT and1xEVDO from CDMA networks. MMDS operators also offer wireless internet(radio connection). The mobile broadband HSPA is the dominant technology. If we considerthe UMTS cellular phones and 3G data devices, they represent 96% of 3Gaccesses in Brazil (source: Teleco). Regard the fixed telephone market, the operators are updating their ADSLnetworks with ADSL2, ADSL2+, VDSL and also are beginning to deploy theFTTH technology. The Exhibit 5.1 depicts a performance comparison among differenttechnologies Peak ThrouputAccess Technology Mode Downlink ReachWiMAX* 3,5 GHz - 5 MHz <1.0 kmbandwidth FDD Wireless Fixed 15 Mbps (urban area)WiMAX* 2,5 GHz - 5 MHz Wireless <1.25 kmbandwidth TDD mobile 10 Mbps (urban area)WiFi (802.11a/b/g) Mobile < 54 Mbps < 0.1 kmADSL Fixed 8 Mbps 3 kmADSL2 Fixed 12 Mbps 1.5 kmADSL2+ Fixed 24 Mbps 1.5 kmVDSL Fixed 50 - 100 Mbps 0.4 kmFTTP (BPON-ATM) Fixed 622 Mbps 20 kmFTTP (EPON-Ethernet) Fixed 1.250 Gbps 20 kmFTTP (GPON-Ethernet/GEM) Fixed 1.244 Gbps 20 kmFTTP (GPON-Ethernet/GEM) Fixed 2.488 Gbps 20 kmEVDO* rel A - 1.8/1.9 GHz - Wireless1.25 MHz bandwidth mobile 3.1 Mbps <1.7 kmHSPA* 1.8/1.9 GHz - 5 Mhz Wirelessbandwidth mobile 14.4 Mbps <1.7 kmHSPA+* 1.8/1.9 GHz - 5 MHz Wirelessbandwidth mobile 28 Mbps <1.7 kmExhibit 5.1 – Technology performance comparison among different technologies* Reach refers to a throughput that is less than the peak value
  • 11. 5.4 Political environment The political and legal environment is composed of laws, governmentagencies and pressure groups that influence and restrict the actions of thecompanies. The political environment provides great restriction over theorganizations and individuals. In July 2009, Anatel proposed a smoothly reduction on the TV operatorsfrequencies in the 2.5 GHz band. The proposal consists in reducing the availablespectrum from 190 MHz to 70 MHz in 2012 and from 70 MHz to 50 MHz in 2015.To start a WiMAX operation, 50 MHz may be enough. But 50 MHz of spectrumeliminates any possibility of expansion. It may be possible one or two operatorsin the same region with 25 MHz of spectrum without considering the band guardthat may reach 5 MHz. In Portland, USA, Clearwire started its operation with 30MHz of band and can increase the spectrum usage until 120 MHz (source:Teletime magazine, August 2009). The great movement on this area was the TVA acquisition by Telefonica inthe cities of São Paulo, Rio de Janeiro, Curitiba and Porto Alegre. It iscommented that Telefonica paid between R$ 1 billion and R$ 1.6 billion and thatmost part of this value was due to the acquisition of the spectrum which iscurrently used by MMDS operation (2.5 GHz range). Recently Telefonicaacquired Vivo which means that their interest on WiMAX may not exist anymore. Anatel intends to use the 2.5GHz spectrum with services such as LTE. The 3.5 GHz spectrum range is another band to be used for WiMAX.There are few operators on this range such as Embratel (whole country license),Brasil Telecom (license for 12 ANs), Grupo Sinos (AN RS1), Neovia (DirectNet)in the state of São Paulo, and WKVE (6 ANs in the states of Minas Gerais,Espírito Santo and Bahia).
  • 12. 6. INTERNAL MICRO ENVIRONMENT The internal micro environment considers the resources, capabilities andthe essential competencies of an organization which although they do notprovide an intrinsic value, they represent value when seen by the possibility ofgeneration of competitive advantage for the enterprise, providing return oninvestment above the average (CECCONELO e AJZENTAL, 2008 p. 114). The deployment and operation of a Broadband network require diverse anddifferent competencies of human resources and also from the organization. Thecompetence of an organization represents the summation of the learning of allgroups of abilities both at personal level and organizational level (HamelePrahalad (1995, p.233). Basically the competencies required to deploy and operate a Broadbandnetwork are: • Knowledge and experience with radio-frequency engineering (it requires knowledge and experience with propagation, network design, antennas, etc). The challenge is to design a network to meet day one requirements as well as future requirements • LTE technology knowledge on both access and core sides • Cellular network deployment experience • Experience in site acquisition and site sharing • Technological group to evaluate infra-structure equipment as well as device hardware • Experience in network operation, CRM, IP, billing, security and services • Marketing experience: coverage area segmentation and priorities, traffic estimation and growth prediction, business models, subscriber packages positioning, competitors knowledge
  • 13. As already commented on this paper, the content is the crucial part of thewireless broadband business. Users are not only interested on the broadbandpipe. They want the applications and services that the broadband can provide.This means that the broadband provider needs to do partnerships with contentdistributors and also brings to the market the more advanced end-user devices. 7. KEY SUCCESSES FACTORS The business and competitor knowledge will allow determining the keysuccesses factors which are the minimum requirements that are necessary for aenterprise to compete with possibilities of success. Based on literature, it is known that main success factors for a Broadbandnetwork operation are the availability of Modems for fixed networks, laptops,smartphones and tablets for wireless networks and also service price and thecost of the backbone access to internet for any type of network. Regarding the project deployment, the main success factors are the choiceof an infra-structure provider totally engaged with the technology. Also, it is veryimportant to minimize the number of additional providers for IP network, BTSbackhaul, data servers, civil infra-structure, site acquisition. Other importantsuccess factors are definition of site priorities; maximize site sharing options, anda presence of a very skilled deployment team.
  • 14. 8. BUSINESS SUMMARY FRAMEWORK In accordance to CECCONELLO and AJZENTAL (2008, p. 134), it isimportant to aggregate all related information that concerns to the business planin a table in order to make available a qualitative and quantitative summary aboutthe aspects that can and cannot interfere directly or not directly in the businessthat is being proposed. The elaboration of this frame intends to bring to the tablean integrated view about different existent variables that are pertinent to theproposed business, pertinent to the definition of the business and to the genericand marketing strategies.
  • 15. 9. BUSINESS CONCEPTION The goal of this chapter is to provide a base foundation for, given theopportunities analysis, to structure and develop a strategic proposal for , in thesequence, to verify its viability. 9.1 Business Plan Definition The business plan is a tool in which the entrepreneurs employs it in orderto detail their ideas in a concise way based in assumptions of quality where it isdemonstrated its viability and the probability of the business success. In accordance to Chiavenato (2005), the business plan consists of ananticipated planning in which the entrepreneur, based in a collection of data andinformation about a business, try to make it viable Business plans are needed at different scenarios. They can be used toexpand a manufacturer plant, to verify the viability in attending a new market, tomanufacture a new product, to offer a new service. This study will show a business plan for a new business. This plan has asthe first goal to dissolve doubts for a possible decision maker about the quality ofthe plan In accordance to CECCONELLO and AJZENTAL (2008, p. 146), thechallenge of every business plan is to identify precisely the reasons that suggestits elaboration. The reasons can be understood as the characterization of aproblem motivated by the uncertainties about the viability of the business. Theeconomic- financial analysis will reflect the verification of the hypothesis andvariables concerned to the problem under study. In order to obtain a very trustful and solid economic-financial analysis, itshould be necessary to perform an exploratory research that connects trendsand correlations with the observed facts in the environment of the business.
  • 16. 9.2 Strategic Planning It is seen that there is a kind of difficulty to define the planning function inthe enterprise world, to define its real magnitude and reach (OLIVEIRA, 2007, p.3). Steiner (1969, p. 12) defined five dimensions non-reciprocally exclusive andwithout very defined borders of the planning: • Subject of interest: manufacturing, research, new products, finance,marketing, installations, human resource, etc. • Planning elements: intents, objectives, strategies, politics, programs,budget, standard, procedures, etc. • Time dimension: long-term, medium-term or short-term • Business unit: corporate planning, business unit strategy planning, affiliateplanning, functional groups planning, division planning, department planning,product, services, etc.. • Characteristic: complex or simple, quantity or quality strategic or tacticplanning, public or confidential, formal or informal, expensive or non expensive So, the planning is defined as a process based on the five showndimensions, done to reach a future scenario in more efficient and effective way,using optimized efforts and resources from the organization. In accordance to SLACK et all, (2002 p. 87), strategy is the global standardof decisions and actions that position the organization on its environment andhas the mission to make it reaches its objectives of long term run. Thesedecisions will take place before, during and after the elaboration and deploymentof the plan. The planning can be distinguished into three types: strategic, tactic andoperational.
  • 17. According to OLIVEIRA, (2007, p. 17), the strategic planning is theadministrative process which provides marketing sustentation in order toestablish the best direction an organization should follow, aiming an optimizedlevel of interaction with the external factors - non manageable – and acting in aninnovative and differentiate way. According to FISCHMANN and ALMEIDA (1991, p. 25), strategic planningis an administrative technique which based on the organization environment, itcreates the conscious of the opportunities and threats, strengthens andweaknesses of the organization for the accomplishment of its mission. Basedon this conscious, it is established the purpose of the direction that theorganization should follow in order to take advantage of the opportunities andavoid risks. According to OLIVEIRA (2007, p. 18), the objective of the tactic planning isto optimize the results of determined area of the organization. So, it works withthe decomposition of the objectives, strategies and politics that were establishedin the strategic planning. It is developed by the intermediate management levelsof the organization. OLIVEIRA, (2007, p.19) defines operational planning as the formalizationof the methodologies of development and deployment of specific results to bereached by the functional areas of the organization. The subject matter of this work is the supply of wireless broadbandservices and contents with an objective of return on investment in seven years. The scenario that is expected for the next years (2011 – 2015) ischaracterized by a sustainable economic growth (better than 4% a year). Theincrease in the power consumption of the population will stimulate theappearance of new services and increase the dispute among cellular operators,internet via Cable Modem and ADSL service providers.
  • 18. 9.3 Purpose of the Organization: Vision, Mission, Believes & Values, and Objectives According to CECCONELLO and AJZENTAL, (2008, p. 149), the purposeof one organization gathers vision, mission, believes & values, and objectives,which help the arrangement of the organization. These aspects are important inorder for the entrepreneur to build the identity of its business, establishing theorganization climate, the standard of behaviors to be followed, what is reallybeing pursued on its business. According to OLIVEIRA, (2007, p.65), the vision is defined as the limits thatthe owners and main executive people can visualize within a certain period of alonger time and one wider approach. Within this context, the vision provides asolid outline of the strategic planning to be developed and deployed by theorganization. The vision represents what the organization intends to be. According to OLIVEIRA, (2007, p.107), the mission is the reason of beingof the organization. Therefore, it tries to find what is real business of theorganization, why it exists, what activities the organization will concentrate in thefuture. According to OLIVEIRA, (2007, p.67), the values represent a set offoundations and fundamental beliefs of an organization, and at the same timethey provide sustentation for all your main decisions. The values should have astrong interaction with ethical and moral values of the organization. According to OLIVEIRA, (2007, p.141), the objective may be defined as astate, situation or a future result that the executive intends to reach. It relates toeverything that implies in obtaining a final result. Objective is a target with adefined execution deadline and assigned responsibilities. According to OLIVEIRA, (2007, p.141), the objective may be defined as astate, situation or a future result that the executive intends to reach. It relates to
  • 19. everything that implies in obtaining a final result. Objective is a target with adefined execution deadline and assigned responsibilities. According to CECCONELLO and AJZENTAL, (2008, p. 155), theobjectives show a more quantitative approach of the company goals, on therevenue, market share and profitability sides. Four our business plan, there are: • Vision: innovate and offer entertainment, information and communicationat any place • Mission: provide excellence in content services • Main objective: reach 360 thousand subscribers within five years 9.4 Generic Competitive Strategies According to OLIVEIRA (2007, p. 181), strategy is defined as a path, orway, or a defined and appropriate action to reach, preferably in a differentiateway, the goals, the challenges and established objectives, in a better positioningof the company in front of its environment.. The strategies may be defined inaccordance with the situation of the company, it may be related to the survival ofthe company, growing or development . Porter (1996) identified three generic competitive strategies which a firmcan face and tackle the competitive strengths of the industry in which the firmacts: cost leadership strategy, level of differentiation, and scope of target marketor approach. These strategies are defined below: • Cost Leadership: this strategy aims to obtain a cost structure thatis lower to the firm’s competitors, allowing it to obtain a great revenue volume.The firms that adopt this strategy need to minimize costs by controllingadministrative, marketing, distribution, research and development, humanresources costs etc..
  • 20. • Differentiation: the firm distinguishes its products in way that theyare noticed as unique on its industry. The differentiation may be in the offer ofproducts or services, on the deployed technology, on the delivery system, on themarket process, on the brand, style, performance, post-sale support, etc.. • Scope of target market: this strategy consists of concentrating theefforts in a determined group of customers, in a product line segment or in aspecific market. This strategy is based on the assumption that a firm is differentwhen it better attends the needs of a specific market, or provide lower costs forthis specific market or both things. For the proposed business plan, intends to be: • Cost leader when compared to 3G systems. The differentiationwill appear as a consequence of the business. If a fixed wireline operator deploysthis project, it will be the only company to offer fixed and mobile broadbandaccess at the same time. 9.5 Marketing Strategy The marketing strategy should be elaborated with the aim of reaching thepurposes of the organization and or of the business. According to KOTLER & ARMSTRONG (1993, p. 367), the strategic plandefines the mission and general objectives of the firm. Each business unit shouldprepare its functional plans, including the marketing plan. If the business unitconsists of so many product lines, brands and markets, it may be necessary todevelop plans for each of them. The marketing plans may include product, brandand market plans. 9.5.1 Marketing Plan Definition
  • 21. According to CECCONELLO and AJZENTAL (2008, p.161), the marketingplan integrates the interdependent elements of the marketing such as sales,product management, customer assistance, advertisement, merchandise, salespromotion, lobby, public relations, brand and distribution. The marketing mix defines the strategic position of a product in themarket. It includes the four main variables that a firm can administer in order toimplement its market strategy: Product, Place (distribution), Promotion and Price. According to CECCONELLO and AJZENTAL (2008, p.161), the marketingplan should be specific for product line, by market and by region and must besupported by the market research. The main objectives are to provide theexecutive board a concise and complete financial and marketing summary reportcontaining the forecast result and objectives. The proposed business plan intends to provide: • Executive summary: the broadband service will attend firstly theurban areas where there are greatest fixed broadband subscriber density • Current market situation is dominated by a great expansion of 3Gbroadband subscribers. 3G system quality is still a issue (EXAME magazinereport, 15/July/2009 p. 91) • As described in the beginning of this work, there will be a greatdemand for broadband services on the next years. This is the great opportunity. 9.5.2 Market Segmentation 1. Segmentation Market segmentation consists of identifiable groups within a market: Benefit segmentation consists in dividing a market into groups based on the different benefits that consumers seek on a product or service
  • 22. (people that seek for low prices, others that seek superior quality, and others that seek service quality). Demographic segmentation consists in dividing the market into groups based on age, sex, education, income, religion, etc.. Occasion segmentation consists in dividing the market into groups according to the occasion when the consumers get the idea, purchase, use the product (e.g.: passengers traveling by business, by leisure or emergency reasons Usage rate segmentation means in grouping persons based on their usage rate: heavy, medium, light, and nonusers of a product. For instance, some people drink one cup of coffee per day (light users) while others drink five or more cups per day (heavy users). Life style segmentation is a type of psychographic segmentation which consists in grouping persons or diving a market based on preferences of their lifestyle (for instance high class people which consume imported cigars and use sport cars, people that enjoy outdoor life, etc) According to KOTLER (2009, p. 45), the market professional can concentrate its efforts into one or two segments and which of them receiving the appropriate consideration. 2. Market Niche KOTLER (2009, p. 45) defines niches as a group of small customers whichshow more defined characteristics, or a unique combination of needs. Byconcentrating in attending a niche provides some advantages, including theopportunity of knowing each customer in a more personal way, to face lesscompetitors and sell services and products with a superior margin once thecustomers intend to pay more for the fact of having their specific needs attended.
  • 23. 3. Local Market According to KOTLER (2009, p. 47), the firms may identify smallercustomer groups which share some characteristics and offer marketopportunities known as local market. Many companies provide customerdatabases which contain information about demography, previous customerpurchase, preferences and other customer characteristics Our business plan intends to: • Use demographic segmentation: the network rollout will start in the high income areas and reach the suburban areas in a later date. 9.5.3 Marketing Mix The marketing mix, also know as the 4P’s - product, price, promotion, anddistribution (place) - translates into actions that should be performed in order toinfluence the buyer. As per CECCONELLO and AJZENTAL (2008, p.163), and KOTLER(2009, p. 126), the 4P’s are described as: • Product: attributes of any good, service, idea, person, institution, etc., which potentially has an exchange value. It is featured by variety, quality, design, brand, package, size, warranty, reimbursement. • Price: attributes that reflect the cost of the product to the consumer, as the price itself, payment conditions, acceptance or not of credit cards among others. It includes price list, discounts, licenses, payment deadline, credit conditions.
  • 24. • Distribution (Place): is everything that relates to the distribution, physical location and logistics to make the product arrives to the final consumer. It consists of channels, coverage, location, stock, transport. • Promotion: is the active communication process of the attributes and benefits of a product for the intended target market. It is characterized by sales promotion, advertisement, sales force, public relations, direct marketing. KOTLER (2009, p. 127) considers the inclusion of two other P’s that arevery important for the global market: politics and public opinion. CECCONELLO and AJZENTAL (2008, p.164) state that when a service isbeing offered, three more P’s may be added to the 4P’s: • People: they are the individuals involved in the service delivery (how they are trained, how they behave in the service delivery, etc..) • Processes: consist of the activities that the individuals perform to provide the service delivery • Physical evidence: it is an element of the marketing mix which customers can actually experience or visualize when they use a service, and which contributes to the perceived quality of this service. It is the place where the service is delivered (airplane, doctor’s clinic, etc) Our business plan consists of: • Product: wireless broadband and differentiated content • Establish a process where the service subscription may be completed in five minutes
  • 25. 10. REFERENCESALLEN, S. M. “Business Case Assessments of a Wireless BroadbandNetwork Deployment”.CECCONELLO, Antônio Renato; AJZENTAL, Alberto. A construção doplano de negócios – São Paulo: Ed. Saraiva, 1ª edição, 2008CHIAVENATO, Idalberto. Empreendedorismo – Dando asas ao espíritoempreendedor–São Paulo: Ed. Saraiva, 1ª. Ed. 2005HAMEL, Gary; PRAHALAD, C.K. Competindo pelo futuro. Riode Janeiro:Campus , 1995.Instituto Brasileiro de Geografia e Estatística – IBGE. Disponível emwww.ibge.gov.brKOTLER, Philip; ARMSTRONG, Gary. Princípios de marketing. 5. ed. Riode Janeiro Prentice-Hall do Brasil Ltda., 1993.KOTLER, Philip. Administração de marketing: análise, planejamento,implementação e controle. 5. ed. São Paulo: Atlas, 1998.KOTLER, Philip. Marketing para o século XXI: como criar, conquistar edominar mercados. 1. ed. São Paulo: Ediouro, 2009.OLIVEIRA, Djalma de Pinho Rebouças de, Planejamento estratégico:conceitos, metodologia e práticas – 24 ed. – São Paulo: Atlas, 2007.PORTER, Michael. Competitive advantage: creating and sustainingcompetitive performance. New York: The Free Press, 1985.Revista Exame: www.exame.com.br edições de 15/07/2009, 08/04/2009.Revista Teletime: www.teletime.com.br edições de Julho/2009, Agosto/2009.RIEDEL, A.; FISCHER, T.; HOGREFE D. "OPTIMISING WIMAX BUSINESSMODELS USING INCENTIVE ENGINEERING”.Teleco: www.teleco.com.br
  • 26. Teletime News online: www.teletime.com.br