Marketing Management Report

This marketing management report analyzes the value proposition of Maxis Berhad and compares it to its competitor, Celcom Axiata Berhad. The report examines customer perceived value, benchmarks the value propositions of both companies, and outlines a plan for Maxis Berhad to implement its value proposition both externally and internally.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Using suitable models to identify the customer perceived value.......................................1
2. Evaluation and comparison of Maxis Berhad value proposition over Celcom Axiata Berhad
................................................................................................................................................4
3. Benchmarking Value proposition of Maxis Berhad and Celcom Axiata Berhad............7
4.Plan to implement the value proposition of Maxis Berhad externally and internally ......10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing management is the process of strategy developing, advertising, promoting,
product and service planning to reach at the desired customer segment (Beverland and
Lindgreen, 2010). It uses several tools to analyse the environment or industry in which the firm
operates. This conducts market and marketing research for analysing competitor's structure,
sources of profits, market positioning and target markets. Competitor analysis in marketing
management is assessment of strengths and weaknesses of potential competitors that will render
offending and defending strategies for identifying the opportunities or threats. This report
discusses about marketing management of Maxis Berhad which is a communication service
provider in Malaysia. The report also throws light on Celcom Axiata Berhad which is the
competitor to chosen organization. It is also known as Celcom which is the oldest mobile
telecommunications provider in Malaysia. It also explains value proposition of Maxis Berhad
and its customer perceived value. The assignment also compares Maxis Berhad's value
proposition to its competitor Celcom Axiata Berhad.
MAIN BODY
1. Using suitable models to identify the customer perceived value
Customer perceived value is the marketing and branding related concept which shows
success of a product or service. It is based on the beliefs of customers whether it satisfies their
needs or not (Bresler and Lubbe, 2014). Customer perceived value is the evaluated measure that
a customer realises to attain by buy or consuming a product. This is the difference between total
benefits obtained to that of cost they had to pay for it. The satisfaction of needs which a product
or service can offer to a potential customer is to see perceived value of customers.
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Customer perceived value concept must be considered while setting up prices as it affects the
demand for a product because psychological and social advantages are having an impact on it.
Economic benefits- These are the benefits that include net income, revenues, etc. which
can be quantified in generated money terms. This may be the saved money to reduce costs that
can be measured or used in business, policy decisions and analysing markets. Maxis Berhad's
businesses use net cash flow, ROI, etc. for measuring whereas, policy makers adopt consumer
and manufacturer surplus measures (Grönroos, 2011). In telecommunication business
developing, a new strategy or innovation of new product involves considering these benefits of
proposal to decision makers to enable measuring financial effects of the proposed change.
Convenience or Accessibility- To stand out from the competition, telecommunication
businesses use convenience factor which is state of being able to proceed doing something with
lesser efforts. It is the ability or decision of consumers to find out and obtain products or services
offered. To achieve this, telecommunication organizations must deliver products and services
through actual convenience, flow, perception and control. In today's market, the purchasing
behaviour of a consumer and decision making are tangled to some core values like satisfaction,
convenience and satisfaction.
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Illustration 1: Customer perceived value
(Source: Customer perceived value , 2018 )

Social benefits- It is the increase in society's welfare that is derived from specific course
of action which is made available to needy. This is benefit to the society from producing or
consuming a product or service which may include private as well as external benefits
(Hollensen, 2010). These are the transfers made which might be in cash or in kind to individuals
to lessen financial burden of protection from several risks such as health, old age, housing and
poverty, etc. Maxis Berhad renders these benefits usually in non-exchange transactions with the
objective to identify circumstances and ways in which expenses or liabilities arise. It also
considers the manner of recognizing and measuring the financial statements.
Relationship benefits or quality- These are the benefits acquired from capacity of a
product to arouse feelings or affectivity which is associated with cultural and ethnic meanings,
personal or memories. It is the passion of consumers to connect with a telecommunication
company beyond their impartial attitude with an organization that renders benefits like fair
service, low risk, etc. This leads consumers to stick to selected company rather switching to
another service provider as they value quality of products and its services. Firms like Maxis
Berhad are trying to improve the customer relationship through strengthening relation quality or
by delivering superior benefits.
Holbrook's typology framework is the type of value that may be obtained in the
consumption experience (Hutt and Speh, 2012). It highlights importance of understanding
nature and kinds of value that customers obtain in consuming a product or service.
This framework suggests an interactive relativistic preference experience which includes the
following:
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Illustration 2: Holbrook's typology framework
(Source: Varieties of Value in the Consumption Satisfaction Response, 2018)

 It is interactive due to value which can only be attained through an interaction between
customers and product.
 Value is relativistic because it can never be absolute when it is the result of customers.
 Value is found in consumption experience of product rather than its purchase.
The extrinsic value of telecommunication is part of worth which has been assigned to a
commodity or service and is directly linked to a price option (Ling-Yee, 2011). It is also known
as time value or time premium which is the actual cost of owning stock option contract. This is a
part of the price of an option which decreases according to time. Extrinsic values include
external factors which the market applies that are beyond internal value.
Intrinsic value is the perceived measure of Telecommunication Company which includes
tangible and intangible factors by using fundamental analysis. It is also called as true value and it
might be same as the current market quantity. Consumers benefit from the increased competition
in differentiated product setting during refreshments, shopping, promotional activities and
developing store loyalty.
2. Evaluation and comparison of Maxis Berhad value proposition over Celcom Axiata Berhad
Value proposition is the marketing statement which a company uses to summarize why a
consumer should buy a product or service (Marchegiani and Phau, 2011). Companies use this
statement to target customers who will benefit from using their products which helps in
managing the economic balance.
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This is promise made by company to a consumer or segment which communicates reasons why
a product or service is suited best for them.
Maxis Berhad is obsessed at providing the best access in Malaysia to the constantly
expanding universe of digital applications by main streaming innovations so that they will
become a solution to the masses. The firm's values include positive, committed, driven and
change oriented environment where a passionate team are concerned about customers through a
collaborative team oriented approach (Merrilees, Rundle-Thiele and Lye, 2011). Maxis Berhad
focuses on continuous innovation by evolving from being leading telecommunication to render
customers with innovative and end to end experience of communication. They also provide
integrated mobility solutions and fixed connections by enabling business to engage digitally the
customers in meaningful ways. Maxis Berhad ensures that their customers experience superior
communication by offering the best network. Uninterrupted 4G LTE network and fastest
coverage of Maxis Berhad provides sturdy internet experience in Malaysia.
The passionate and positive engagement of firm is aimed at creating long lasting impact
within communities in which they operate. Maxis Berhad enriches the local communities
through their economic environmental and social responsibility activities and programmes. High
performance culture of Maxis Berhad is supported by the workforce who are passionate and
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Illustration 3: Value proposition framework
(Source: Value proposition. 2017)

positive which drive the firm. They are aimed at rendering high quality customer service and
makes Maxis Berhad choice of digital experience seekers in Malaysia.
Celcom Axiata Berhad part of Axiata Berhad Group provides mobile communication
services in Malaysia which is the premier and most experienced Telecommunication Company in
the country. They offer prepaid and post-paid mobile services as well as other short messaging
services to masses of country (Michaelidou, Siamagka and Christodoulides, 2011). Celcom
Axiata Berhad renders several services to their customers like voice, mobile internet, messaging,
etc. They design their services as a shared service to ensure fairness where the activities of
consumer will have an impact on other users of the same network. They also ensure that services
gained by vast majority are not negatively affected due to excessive use and abuse by the minor
communities. Main concern of Celcom Axiata Berhad is the protection of services from any
unauthorised device exploiting for commercial gains. For that, they continuously monitor the
network performance and control identified heavy use of customers. They provide mobile
number portability to the masses of Malaysia and multimedia commission services along with
virtual mobile operator service. Celcom Axiata Berhad also renders rural communications using
CDMA and satellite phone to help the communities to use mobile technology. They provide the
country's most popular broadband with 1534 million subscribers which cover 86% of population.
Comparing both: Celcom Axiata Berhad and Maxis Berhad, each company is engaged in
telecommunication service providing in the same market in different dimensions and segmented
markets. Celcom Axiata Berhad is focusing mainly on the rural communication and are
concentrating on broadband services due to a large number of consumers (Miquel-Romero,
Caplliure-Giner and Adame-Sánchez, 2014). Maxis Berhad being one of the biggest
telecommunication service providers concentrates on their customer service at the same time
renders high quality services to gain customer satisfaction. Celcom Axiata Berhad is aimed at
maintaining security by protecting the customers without losing clients. Whereas, Maxis Berhad
looks for the latest developments to make digital communication broader. They are also
concentrating on their social responsibilities by rendering various services to help the needy
people and uplift community. Celcom Axiata Berhad is a pioneer in Malaysia which has leading
partnerships that includes Mobile Virtual Network Operators, domestic and international
roaming. These partners renders additional channels to the market that covers niche segments
with strong potential making Celcom Axiata Berhad's increased value. The long-term
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associations between Celcom, local and global operators results in economies of scale, optimised
network coverage and matchless mobile experience for their customers. Celcom's initiatives like
industry leading consumer lab they focus on needs of customers which lead to high level of
products and services innovation, customer service excellence, industry honour at regional and
national levels (Moutinho and Southern, 2010). They have a unique set of customer experience
values to drive intimacy and satisfaction. Celcom Axiata Berhad provides an online customer
service and payment gateway system that facilitates payment transactions and support services
making its value rise by the clients. Their pledge to deliver superior customer experience have
gained wider recognition of the company and goodwill. Maxis Berhad creates a value
proposition by offering the customers faster speed broadband internet services and reliable
mobile connectivity.
3. Benchmarking Value proposition of Maxis Berhad and Celcom Axiata Berhad
From the analysis it can be understood that both the companies operate in the
telecommunication industry and target the same national market through distinct dimensions
headquartered in Malaysia. Maxis Berhad concentrates more on business customers which are
high end markets by offering cloud computing, data storage, machine to machine services etc.
They serves over 9.5 million customers all over Malaysia being a biggest telecommunication
service provider in the country. While Celcom Axiata Berhad focuses on both lower and high
end markets centring low end customers a bit highly (Salin and Ismail, 2015). They have 250
million customers over 8 countries making them Asia's largest mobile service provider. It can be
observed that Maxis Berhad do not offer best customer value as compared to Celcom Axiata
Berhad as they mainly focusses on top class business customers. Celcom Axiata Berhad's main
aim is to provide quality services with the latest advancements at the same time considers
customer's needs to gain more value of their products and services.
The financial statements of both companies shows a strong competition in
telecommunication industry where Maxis Berhad needs to increase their research and
development to develop new schemes (Selvarajh and et.al., 2012). They must focus on precise
areas where it holds strong competency and become unique among the telecommunication
service providers. Maxis Berhad can extend their services to the rural areas focusing on low end
customers like Celcom Axiata Berhad where they may get potential customers. Maxis Berhad's
profitability and liquidity performance are strong but lacks operational performance which
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decreases the profit margins, net income and asset utilization. Celcom Axiata Berhad needs to
improve their collection period as presently it is too long causing them to use working capital
funds to clear payables. The services provided by them are weaker and not much advanced as
compared to Maxis Berhad but still renders quality reasonable products and services to their
customers (SLim, 2011Embi and Nordin, 2013). Maxis Berhad offers products and services that
copes with the latest technological advancements at a correspondent price.
The markets of Maxis Berhad are weaker as compared to its competitor Celcom Axiata
Berhad but still holds a high class reputed clients who uses their advanced technologies for
business and investment purposes. Celcom Axiata Berhad is focused more on low end customers
with the aim of rendering quality services at a reasonable price which attracts more customers to
them. Also they have won several recognitions and their values provides them with esteem,
status and psychological attraction of customers that Maxis Berhad lacks.
To improve the value proposition Maxis Berhad need to have variety of products or
services and choices for all customers than focusing only on high end customers. This will
increase customer experience, repeated use of their products that will raise profit turnover and
help in achieving competitive advantage. As the buyers of today's rapidly changing world are
different from one another in the buying behaviour Maxis Berhad must modify its value
proposition from being choice of digital experience seekers to developing a more customer
oriented brand (Abdul Rahim, 2013). They can deliver products and services of customer's need
to create an emotional bond between the customer and company to develop a much more
recognition in the telecommunication industry. Their competitor Celcom Axiata Berhad had
created a competitive edge and brand label losing uniqueness due to lack of capital as they were
operating on working capital.
This lead the customers step back from the product in recent times which can be an added
advantage for Maxis Berhad. Where they can differentiate its customer value proposition from
Celcom Axiata Berhad using their already acquired set of technological advancements. It will
pass a clear message to their customers which develops a psychological connection between the
brand and its latest technologies rendered for the customers. Customers will think of the fact that
why not to pay a little more price for a much more advanced technology. At the same time
Maxis Berhad can differentiate its objective offering considerably lower prices for their services
that may attract more potential customers without compromising on quality. By implementing
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these changes Maxis Berhad may attain a new value proposition that will create self esteem
value for customers. And the company can offer quality services or products which will fill the
space between economic value and competitive advantage.
Value proposition
To transform the future by becoming preferred choice for
digital experience seekers. And fuel potential for excellence
and advocating environmentally friendly practices (Napiah,
2013).
Target market Targetting low end customers segments and maintaining
existing business class segments (Chang, and Chong, 2011).
Also aiming to render quality services and products of latest
technology enabled to attract potential customers.
Benefit delivered Latest technology in telecommunication industry with
quality products and services to connect emotional and
psychological customers (Maiyaki, Mohd Noor and Mohd
Mokhtar, 2011).
Competition Direct competitor Celcom Axiata Berhad and Telekom
Malaysia
Indirect competitor Digi telecom and U mobile (Taghizadeh
and et.al., 2014).
Assurance High speed internet and anytime mobile connectivity
Secure data storage and cloud computing
Customer service and satisfaction
Customer feedback
Replacement of products or services if found faulty
(Kustedjo and Han, 2016)
Price Low cost products and services for the low end customers
with less income earners
Premium high end segments (Salin and Ismail, 2015)
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4.Plan to implement the value proposition of Maxis Berhad externally and internally
Doing the same things like others in the business will not do any change. Research will
help Maxis Berhad differentiate its brand and business in a meaningful manner in the minds of
consumers separating the company from competency. Value proposition and brand positioning
can be used to differentiate Maxis Berhad from other telecommunication service providers.
Customer value management and creation is about choosing, delivering and communicating
value. Value proposition is the initial step needs to be attained for creating value (Beverland and
Lindgreen, 2010).
The value proposition is the total sum of functional and emotional benefits which Maxis Berhad
promises that a customer will receive in return for what they pay. This can be applied to the
entire organization in customer segments, products or services etc. For ensuring the
implementation of new value proposition Maxis Berhad should adopt the following plan to
facilitate adoption both externally and internally:
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Illustration 4: Strategy Implementation
(Source: Sketch Bubble, 2018 )

Customer value management: Maxis Berhad can use this to understand their customers
better through managing processes that refines and leverages benefits of products and services to
clients.
Customer relationship management: Maxis Berhad must use this strategy for
expanding, creating and sustaining the relationship with customers for a better value proposition.
Marketing and brand communications: Maxis Berhad must ensure external image of
theirs that reflects brand name. Positioning products and services to deliver value propositions
Digital business: Maxis Berhad can devise effective ways to deliver unmatched digital
experience to their customers online by making it easy for business partners and general public
interact through channels (Bresler and Lubbe, 2014).
Product marketing and management: Maxis Berhad should position their products and
services to attract and engage current potential customers through development and promotion.
Channel marketing: Maxis Berhad must support dealers who sell their products and
services to customers that will excite them at the point of purchase.
New business partnerships: Maxis Berhad needs to look for expanding their businesses
into new territories and look for partnership opportunities to meet the needs.
Marketing mix (4Ps) Maxis Berhad external market strategy
Price The price of the Maxis Berhad's products and services
should maintain a balance between cost, quality and ethics.
It must not be too high and not so cheaper to avoid
categorizing the brand to be inferior. The prices should be
set as per the class of the products and services offered like
low and high income class (Lim, 2011).
Place Maxis Berhad should improve their location strategies to
compete more like Celcom Axiata Berhad (Selvarajh and
et.al., 2012). Maxis Berhad 's positioning must be based on
multiple markets and perfect geographical location.
Product Maxis Berhad should carefully deign their products and
services that must reflect value proposition (Embi and
Nordin, 2013). By building and categorizing products on
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the income basis of customers must include quality and
superior services.
Promotion Maxis Berhad must also concentrate on promotional
activities by being more innovative and competitive. It
already focuses on social responsibilities which needs to be
given more focus (Abdul Rahim, 2013).
As per the implementations of marketing mix Maxis Berhad must also make changes in
their organizational structure and responsibilities of employees. Top management should carry
enthusiastically the staff with them for bringing change. This will help all employees motivated
and embrace the proposed changes.
Role Change to job role with new strategies
Manager Maxis Berhad's Manager needs to put on more efforts to
motivate and support employees adopt the new strategies
formulated and that the firm should follow the changed
approach in all departments (Chang, and Chong, 2011).
Marketing department Maxis Berhad should follow the new marketing plan
according to the innovative products and services which the
company has developed as per the fresh plan made
(Kustedjo and Han, 2016)
Customer support team The client service team of Maxis Berhad should implement
a new way of serving the customers to attract them and give
them the best service than before (Maiyaki, Mohd Noor and
Mohd Mokhtar, 2011).
Employees Maxis Berhad's entire workforce should be aware and must
implement the new strategies developed for the uplifting of
the company to new heights (Napiah, 2013).
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Maxis Berhad' external and internal analysis shows the various resources it can use and
several changes that may bring advancements to the company. In terms of less recognition and
targetting new areas they must implement some new strategies allowing the firm to get noticed
by more public. The employees should be informed about the new plans and policies so that they
can work according to the need to bring in more productivity and efficiency. Based on the
advancement to new geographical locations Maxis Berhad must offer quality products to the
target customers of rural areas at the same time rendering quality and improved services to all.
Stronger change managing Maxis Berhad should reduce the risk of producing
services that costs heavy to attract high end customers
(Taghizadeh and et.al., 2014).
Customer feedback and management Maxis Berhad should improve the customer services to
gain more satisfied customers and must render quality
products and services.
Preventive measures Maxis Berhad must bring in several prevention steps to
avoid the risk of poor quality products and services
which the low end customers may put forward
CONCLUSION
From this report in marketing management it can be concluded that for the successful
functioning and operations of a business marketing processes plays an important role (Salin and
Ismail, 2015). This report studied the Maxis Berhad and its competitor Celcom Axiata Berhad's
value proposition and analyzed how Maxis Berhad meet its new value proposition (Selvarajh and
et.al., 2012). It also examined the various implementation plans that Maxis Berhad must follow
to attain competency and economies of scale.
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