Report: Marketing Principles of Spark New Zealand Telecommunications

This report provides a comprehensive analysis of the marketing principles employed by Spark New Zealand, a major telecommunications company. The report begins with an introduction to marketing concepts and then delves into Spark's market segmentation strategies, examining demographic, psychographic, behavioral, and geographic segmentation approaches. It then explores Spark's targeting methods, focusing on the specific consumer groups the company aims to reach. A competitor analysis assesses Spark's position relative to rivals like 2degrees and NOW New Zealand. The report examines Spark's positioning strategy, emphasizing experiential methods and customer value. The consumer buying decision process is analyzed, outlining the rational decision-making model used by consumers when choosing telecommunication services. Finally, the report details Spark's marketing mix, covering product, price, place, promotion, process, people, and physical evidence, providing a holistic view of the company's marketing efforts. The report concludes by summarizing the key findings and emphasizing the importance of strategic marketing in the telecommunications industry.

Marketing Principle of Spark New Zealand
Name of the Student
Student ID
Name of the University
1

Table of Contents
Introduction......................................................................................................................................3
Task 1: Segment..............................................................................................................................4
Task 2: Targeting.............................................................................................................................5
Task 3: Competitor Analysis...........................................................................................................5
Task 4: Positioning..........................................................................................................................7
Task 5: Consumer buying decision..................................................................................................7
Task 6: Marketing Mix....................................................................................................................9
Conclusion.....................................................................................................................................12
Reference List................................................................................................................................13
2

Introduction
Marketing is considered as an activity, which aims at recognizing the needs of the consumers,
and helps companies in creating value and distributing their products in a manner so that the
consumer needs can be met. The aim of this report is to analyse the marketing principle of Spark
a popular telecommunication company operating in New Zealand. The organisation provides
mobile networks, fixed-line telephone services and internet services to its users. Market
segmentation and competitor analysis will be conducted which will help in evaluating the market
performance of the firm. In addition, the marketing mix will help in understanding the primary
marketing initiative used by the organisation in order to reach out to its consumers.
3

Task 1: Segment
Market segmentation is considered as the process of dividing consumers into small groups based
on their behaviour, beliefs and other such traits.
Demographic segmentation: This segmentation style is used by Spark telecommunications in
order to focus on consumers based on their age, lifestyle, gender, income, education and family
makeup. As per demographic segmentation style, it is noted that Spark focuses on people
belonging to the age group of 25-50 and mainly considers families and households for their
services as compared to individual users. The company makes use of a low-cost pricing strategy
in order to attract consumers belonging from various economic backgrounds.
Psychographic segmentation: In this segmentation, style consumers sharing similar
characteristics like social interest are grouped (Gajanova, Nadanyiova & Moravcikova, 2019).
Based on the segmentation style Spark focuses on tech-savvy consumers and a working group of
people. Consumers inclined towards technology are more interested in internet speed and new
mobile networks introduced by the firm.
Figure 1: Market Segmentations
4

Behavioural segmentation: In this segmentation, users having similar behaviours are grouped. As
per this segmentation style, Spark targets millennials who use broadband services and
technology-friendly users.
Geographic segmentation: As per the segmentation style, consumers are segmented based on the
particular geographic regions they live in (Owusu & Agyemang, 2021). it is noted that Sark
telecommunication provides its services all across New Zealand, therefore, consumers living in a
different region of the country can easily access its services.
Task 2: Targeting
Targeting is the process used by organisations in order to learn about their consumers and based
on the information marketing strategies are formulated for specific consumer groups in order to
maximize response (Nadube & Didia, 2018). Based on the market segmentation of Spark it is
analysed that the company is targeting people belonging to middle-income groups of the
population. The firm is concentrating more on millennials who are active internet users and
focuses on business people for their services and products. These are the primary targets towards
which it is marketing initiatives and products are directed or sold.
Task 3: Competitor Analysis
It is evident that with increasing globalisation and rapid development in technology competition
among the business organisation is increasing immensely. Similarly, competition in the
telecommunication segment of New Zealand is also high and Spark telecommunication faces
immense competition from other telecommunication organisation such as NOW New Zealand
and 2 degrees. It is analysed that both 2degrees, as well as NOW New Zealand, are offering
similar services telecommunication services ad are focused on innovation in order to attract
consumers. As compared to Spark 2 degree offers more flexibility and option to its consumers
whereas Spark focuses on providing consumer values (thedownload.co.nz, 2021).
5

Figure 2: Telecommunication in New Zealand
On the other hand, it is noted that NOW New Zealand is focused on providing good network
coverage to its users. It is analysed that in order to gain a competitive edge in the market Spark
focuses on providing network coverage or popular mobile phone providers like Skinny. In
addition, Spark telecommunication is taking active initiation of tying up popular brands like
Samsung in order to launch the 5G network in New Zealand. These strategies used by the firm
are helping the organisation in gaining consumer support and popularity in the market.
6

Task 4: Positioning
The organisation makes use of experiential positioning methods in order to target its primary
consumers for its broadband and mobile network services. The company is focused on quality
services and is concentrating on digitising the future. The company analyses the needs of its
consumer and provide immense consumer values in order to gain customer loyalty support which
lifts the brand position in the market.
Task 5: Consumer buying decision
In order to purchase a product or service, the consumer goes through certain steps of decision
making that helps them in deciding which brand they should associate with. The busying
decision process is considered as the decision-making process which is used by the customers in
order to understand the market transactions before, during and after making the purchase of a
service or product it is a type of cost-benefit analysis in the presence of different alternatives.
Rational decision-making model in order to make the purchasing decision for telecommunication
services to Spark.
Defining the problem, as per this stage the consumer defines its problems or the needs of a
service (Power, Cyphert & Roth, 2019). For instance, as in the present scenario, it is noted that
the majority of employees are required to work from therefore, consumers need stable internet
connections. Therefore, the problem here is the need for a stable internet connection in order to
support office work from home
Possible solution: In this stage, some criteria are evaluated in order to use the various solution.
For instance, in order to gain internet access, there are certain methods that can be considered by
the consumers. For instance, making use of broadband services, recharging mobile data packs,
and other such mediums. However, data packs can be expensive as a huge amount of data is
needed for official work and it might be weak as compared to a broadband connection.
Generate alternatives: in this stage, the entire consumer considers the brands such as Spark,
2degrees, NOW New Zealand and more.
7

Evaluate the alternatives: in this stage all, the alternatives are evaluated in a detailed manner. The
services offered by them, the prices at which the brands are producing their products, the value
and offer or discounts that are given by the brands. All the criteria are compared in this stage.
Selecting the appropriate alternatives: after comparing the different brands finally, consumers
decide the product they want to purchase and the brand with which they want to associate.
All the above-discussed steps are the basic steps that are involved in the decision-making process
of the consumers. Therefore, as per the discussion, it is analysed that in order to influence the
purchasing decision of the consumers it is necessary that Spark telecommunication should
concentrate on certain factors like price, services, customer value and needs, which can allow
them in gaining a competitive edge over other similar brand and make them more appealing to
the consumers.
8

Task 6: Marketing Mix
The marketing mix is a mode used by marketers in order to determine their marketing objectives
for the target market.
The marketing mix of Spark telecommunication are:
Product: Product refers to the commodity or services that are offered to the consumers by a
business (Thabit & Raewf, 2018). Spark telecommunication has strategically diversified its
services and products with a blend of old and new technology the company provides a network
for mobile phones, broadband services, Landline telephone communication and more such
services to its users. The company provides ICT to the majority of NZ business through its Spark
Digital division. The company keeps updating its technology to provide consumers with speedy
and quality services.
Price: Price in the marketing mix is considered as the payment that is paid or given by the
consumers in order to purchase the product and services offered by a business. It is analysing
that due to increasing market competition pricing strategy plays a crucial role for the broadband
services in New Zealand. Spark telecommunication is a popular brand and the services and
products of the firms are pricing sensitive as it is operating in the telecommunication sector. For
the majority of its services, the organisation implement the bundle-pricing strategy. For instance,
in broadband services, the company provides different offers based on the utility rate of the
customers. With time, the firm keeps cutting down its costs of services in order to remain
competitive.
9

Figure 3: Determinants of Marketing Mix
Place: In the telecommunication sector, the distribution channel is vital for analysing recent as
well as future trends. In order to be successful originations are encouraged to develop solutions
based on the needs of their consumers. Therefore, Spark telecommunication focused
significantly on avoiding channel conflicts. They make use of various distribution channel for
their products they implement direct communication mode like sending posts, sending email, and
other door-to-door sales methods. They also reach out to their customers with the help of
websites.
Promotion: The Company is well aware of the necessity and importance of promotions and
advertisement (Pomering, 2017). Similar to other communication companies Spark
telecommunication also makes use of traditional advertisement methods like radio commercials,
television commercials and billboard advertisements. Apart from traditional media, the company
makes use of digital promotional activities in order to reach out to millennial and target
consumer group with the help of the internet and social media the organisational advertises about
its internet and broadband services. Display advertisement and social media posts become viral
within few minutes and at a minimal cost therefore, these tactics are beneficial for the firm. The
organisation also provides offers and special discounts to attract consumers
10

Process: Spark Telecommunication has its headquarters situated in Auckland, New Zealand and
it operates its processes from there. The organisation makes use of a very simple process, which
is easily accessible to, all its consumers. The company provides its users with a customer service
number so that any issues and queries can be resolved. Customer can contact the number from
any part of the world and get assistance from the company. Due to its speedy and user-friendly
services, the company has a strong customer base.
People: it is evident that in the service industry there is a high level of interaction taking place
between people therefore, Spark telecommunication has ensured to provide training to all its staff
members in order to enhance their customer service skill. This helps in enhancing the consumer
experience and gaining customer satisfaction. In addition, in order to keep their employees
satisfied the company has numerous reward programs aimed at boosting the morale of the
employees.
Physical evidence: the company has a physical organisation located in Auckland and multiple
stores located all across New Zealand. In addition, the organisation also offering attractive offer
to its consumers it also has an online website in order to help its consumer understand the
organisation. In addition, the company also releases financial reports about its performance,
which can allow the consumers in gaining an in-depth understanding of the organisation.
11

Conclusion
From the above discussion, it can be concluded that the telecommunication industry is
experiencing immense competition and it is essential that based on the trends companies should
take the proper initiative of introducing strategic marketing techniques that can allow them in
reaching out to their target consumers and motivate them to associate with the services of the
brand. It is analysed that Spark telecommunication is targeting business groups, middle-income
groups and socially active millennials for their internet and network services. The company is
making use of social media as well as traditional advertising techniques to interact and
communicate with its customers.
12

Reference List
"We invented competition in New Zealand" - The Download. (2021). Retrieved 16 April 2021,
from https://thedownload.co.nz/our-stories/we-invented-competition-in-new-zealand/
Gajanova, L., Nadanyiova, M., & Moravcikova, D. (2019). The use of demographic and
psychographic segmentation to creating marketing strategy of brand loyalty. Scientific
annals of economics and business, 66(1), 65-84.
Nadube, P. M., & Didia, J. U. D. (2018). Market targeting and strategic
positioning. International Journal of Marketing Research and Management, 8(1), 32-45.
Owusu, A., & Agyemang, G. (2021). Impact of Market Segmentation Strategies on Customer
Loyalty: The Mediating Role of Positioning Effectiveness of Interior Design Industries
within the Kumasi Metropolis. European Business & Management, 7(1), 1.
Pomering, A. (2017). Marketing for sustainability: Extending the conceptualisation of the
marketing mix to drive value for individuals and society at large. Australasian Marketing
Journal (AMJ), 25(2), 157-165.
Power, D. J., Cyphert, D., & Roth, R. M. (2019). Analytics, bias, and evidence: the quest for
rational decision making. Journal of Decision Systems, 28(2), 120-137.
Thabit, T., & Raewf, M. (2018). The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies, 4(4).
13