Environmental Analysis and Marketing Strategies in BT Group
Added on 2019-12-03
11 Pages4117 Words629 ViewsType: 629
Marketing
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Marketing Management in British TELECOM
In the global corporate world, creating a successful corporation faces several challenges.These obstacles often influence their rate of long term planning, even the firms that are wellestablished, globally known and set the standards of the market have to put maximum of effortsdaily to maintain their status quo. Marketing is a significant process in any business as itcontributes largely to the success of the firm. In the prosperity of an organization, marketing is avital component and while designing strategies, focus should be given to obtain new clients,branding and making effective public relations (Tinson, 2004). The goal of marketing should beto promote the product or service widely so as to be recognized in the market. In this competitive global market with several businesses, getting the product noticed isnot easy and requires suitable strategies to acquire a competitive position in the market.According to author Philip Kotler (2008) – “Marketing is a social and managerial process bywhich individuals and groups acquire what they want and need by creating and exchanginggoods and value with others”. Marketing in a business organization is all about understanding thewants, needs and demands of customers. In order to understand the concepts and nature ofmarketing in an evocative manner, the organization selected is a multinational corporationBritish Telecom. Headquartered in London, United Kingdom it is one of the biggesttelecommunications services firms all around the world and has its operations in more than 170nations. It was found in 1980 and privatized in 1984 with more than 50% of its shares sold toinvestors (British Telecom, 2012). British Telecom is a major supplier of telecom services to government customers andcorporate clients globally. The major activities of this organization are related to the provisionsof fixed line services, TV product and services and mobile services. The aim of the firm is tohelp customers in the ever changing world and marketing mix and strategies are adopted by thefirm as per the objectives as well as the requirements of consumers. The company employsefficient marketing strategies in order to acquire a distinguished position in the market and fulfillthe anticipations of customers (BT Group, 2013). In order to manage the global competition,marketing strategies are designed in a manner that it meets the demand of the market. Marketingis explained mainly as the process through which firms create value for customers and build astrong relationship to acquire value from them in return. British Telecom takes this factor intoconsideration and responds accordingly as without it buyers would not be able to function. Itfollows the concept of innovative marketing as it is a service provider and needs to offer1
appropriate value according to the customers’ needs. The nature of marketing for BritishTelecom is designed to provide high quality service with maintaining strong customerrelationships. The main components of it are product, price, place and promotional strategies.British Telecom (BT) effectively utilizes all the four components of marketing, prices are set toacquire a competitive advantage and value to potential customers. The promotional tools used bythe firm are focused vividly towards advertising, personal selling, sales promotion and publicrelations (BT Group, 2013). Every business is involved in the marketing process making it centre of the business andit is essential for companies to build goodwill with buyers and acquire loyalty for their goods.Marketing is responsible for comprehending the needs and wants of customers as it stands tofulfill the requirements by making available the goods that suits preferences of market. In thiscontext, an assessment of the marketing environment is very much vital as it will aid indesigning a marketing information system for the organization. BT group operates in a differentexternal environment both at international and local level. There are various competitorsavailable in the external environment, and it needs to enforce proper technological policies inorder to attain success. The marketing environment for BT group mainly includes four principalareas that are political, economical, social and technological (Brassington and Pettit, 2010). Thestrategic political relationship between UK and the rest of the world is successful, and many ofthe nations have a keen eye to ensure political stability with its strategic partners. BT has anadvantage of political stability in UK; other than this in the economic environment globalizationis on the rise and transforming economy of business. As more and more organizations areentering into international business, there would be an increased demand for effectivecommunication and novel products. The BT group have major areas to be developed because the government and manyinternational corporations are in the process of transformation from paper based operations tomodern technology which will certainly require the need for a credible service provider. Theincreased earning capacity and changing lifestyle of people are making the demand for productslike BT have a high probability to grow; since people are now becoming more adaptable towardstechnological products (Herstein and Gamliel, 2006). In technology, there not only newinventions, but also there are many areas to grow hence in BT gets maximum chance to diversifyand grow. BT group need to assess the external environment of business while enforcing2
marketing strategies, but prior to this it is very much essential for the company to analyze thenature of buying behavior (Parsons and MacLaran, 2009). Consumer buying behavior is often changing as well as their needs and wants differaccording to the area. It includes how do people think and perceive things between diversealternatives such as a product, brand and actions they undertake in purchasing and consumptionprocess. According to author Schiffman (2000) – “The needs and goals are continuouslychanging and rising in business in response to an individual’s physical condition, experience,environment and interaction with others”. Needs of customers mostly change with numerousfactors and due to this organizations should recognize various issues to analyze customers’needs. The buying behavior today has changed a lot and people try to seek for products that areneeded and make a decision after assessing it from several different perspectives. After viewingthat, there are ample of products and services with different brands are available in the market,consumers sometimes gets confused and it is the need of marketers to influence them to purchasethe company’s product (Walley and et. al., 2007). The level of competition is high in thisindustry that has forced BT group to indulge in both price and non-price competition. Mobileretail is the leading factor in industry’s revenue stream and new technologies such as 3G that hasfurther increased competition in the market. In order to capture maximum number of customersit is essential to segment the according to consumers class and their demands. Market segmentation refers to the process of creation of small groups within a largermarket to bring in consumers together who have similar requirements, needs and interest. In thisapproach one market segment is entirely different from the other and is comprised up ofindividuals who think on a similar line and have same interests. The individuals from similarsegment respond in a similar way with the fluctuations in market. Once the marketer createsdistinguished segments within the market, organizations them enforce various marketing andpromotional strategies according to the taste and preferences of individual in a particularsegment (Competitive Advantage, 2012). This process is known as targeting, once the market issegmented firms then targets the customers. In this process, the last stage is positioning of targetmarket, here firms strive in to create an image of its product in the minds of buyers. Marketerscreate a first impression of goods in the minds of buyers through suitable positioning strategy. It3
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