Tencent's Marketing Principles: Analysis and Recommendations

This report provides a comprehensive analysis of Tencent's marketing principles, focusing on its critical success factors and marketing mix. It examines the company's strengths, weaknesses, opportunities, and threats in relation to customer needs and segmentation. The report details Tencent's product, pricing, placement, promotion, people, physical evidence, and processes within its marketing mix. Furthermore, it offers recommendations for improving customer engagement, segmentation strategies, and overall marketing effectiveness, emphasizing the importance of understanding customer needs, enhancing physical presence, and optimizing promotional activities to achieve sustainable growth and success in both domestic and international markets. The analysis uses a perceptual map to visually represent Tencent's market position and competitive landscape.

Running Head: PRINCIPLE OF MARKETING: TENCENT
Principle of Marketing: Tencent
Name of the Student:
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1PRINCIPLE OF MARKETING: TENCENT
Executive Summary
The research report provides a clear idea regarding the principle of marketing of the Tencent
company in the marketplace. The report focuses on the critical success factor of the
organization along with that marketing mix of the brand in the marketplace. Lastly, the report
also provides a clear idea regarding the recommendation that can be followed by the brand so
that they can achieve the target that they are willing to obtain in the marketplace. This will
automatically enable the organization to expand in the marketplace and to generate huge
amount of money in the end.

2PRINCIPLE OF MARKETING: TENCENT
Table of Contents
1.0. Introduction.....................................................................................................................3
2.0. Critical Success Factor....................................................................................................4
2.1. CSF 1: Needs of the Customers...................................................................................4
2.2. CSF 2: Customer Segmentation..................................................................................5
3.0. Marketing Mix................................................................................................................5
4.0. Recommendations...........................................................................................................7
4.1. Recommendation for Needs of the Customers............................................................7
4.2. Recommendation for Customer Segmentation............................................................8
5.0. References.......................................................................................................................9

3PRINCIPLE OF MARKETING: TENCENT
1.0. Introduction
Tencent is a Chinese multinational company which was founded in the year 1998 and
the company mainly deals with the internet-related service, which is the main product as well
as service of the organization. The company in recent times mainly introduce games in the
marketplace which is being downloaded by the users from the Google Play Store (Long and
Liu 2017). The company mainly target the kids, teenagers as well as the adults who use smart
phones to play games. This is essential factor for the growth of the firm in the marketplace all
around the world. As the company mainly deals with the internet based products and services
so it is essential for the organization to understand that its main motto is to deal with the
customers satisfaction as they do not possess any tangible products in the marketplace both
domestically and internationally (Zhang et al. 2016).
The organization is the one of the largest video game company in the whole world
and that is the sole reason they are quite popular in the marketplace and this helps the firm to
obtain the success that they are intending to gain in the process. The organization mainly
depends on the e-commerce in the marketplace and that is why they are able to reach to the
customers in less possible time (Wu et al. 2019). This ultimately enable the company to
flourish in the marketplace and to achieve the success in the process. Thus, it can be said that
the company is able to gather the information regarding the taste and preference from the
internet and can work efficiently to meet the demand of the marketplace in the process.
Therefore, it is crucial for the firm to flourish in the marketplace and look after the customer
base that they possess in the process, so that they can generate revenue from the market and
can gain the popularity in the process (Greeven and Wei 2017).

4PRINCIPLE OF MARKETING: TENCENT
Fig. 1: Perceptual Map of Tencent
(Source: Created by Author)
2.0. Critical Success Factor
2.1. CSF 1: Needs of the Customers
Tencent as they deals with the online services as well as products so it is able
to understand the needs as well as wants of the consumers with the help of the internet
as well as surveys in the process. This is a strength of the organization in the
marketplace. The weakness of the firm is that they do not possess any physical
evidence in the marketplace so the consumers cannot reach to the firm (ZHANG and
CAI 2019). There are huge opportunity for the organization to flourish in the
marketplace as the taste and prefernces of the customers changes frequently so they
can possesses a wide range of services for the customers. Lastly, there are threats for
the organization in the marketplace such as minigames, microloft, glu, etc., who also
produces games and other online based services for the consumers all around the

5PRINCIPLE OF MARKETING: TENCENT
world. The firm requires to look after the matter so that they can flourish in the
marketplace (Emch 2016).
2.2. CSF 2: Customer Segmentation
Tencent is able to segment its customer base which is a strength of the
organization in the expansion process. This enables the organization to introduce the
services as per the customer segmentation which is a strengthy of the firm. The
weakness of the firm is that they do not possess large segment of consumers in the
market as they mainly deals in the online gaming industry (Chen et al. 2019). There
are potential opportunity for the company to segregate the customers in a effective
way possible so that they can develop the games as per the customer segment in the
marketplace, which will enable them to flourish in the marketplace. Lasltly, there are
threats in the marketplace for the organization and it requires to understand the threats
so that they can operate effectively in the process as its customer segmentation is not
so vast in the process. Therefore, it is crucial for the firm to understand the customer
segment that they possess in the process (Yuping et al. 2020).
3.0. Marketing Mix
Tencent possesses a very efficient and effective marketing mix, which enables them
to understandwhat are the strategies they need to take up in the process so that they can
accomplish the success in the marketplace. This assist the company to target the customers
and help them to generate revenue in the process. This is critical for the firm in the expansion
process and that is the sole reason the marketing mix of the organization is being segmented
in an effective way possible so that the effectiveness can be understood in the process. The
mrmeting mix of Tencent are as follows:
 Product: Tencent mainly deals with the online products which is in the form of

6PRINCIPLE OF MARKETING: TENCENT
service to the consumers. This enables the organization to reach the customers in
less possible and also assist them to achieve the success in the process.
Therefore, the conmpany possesses an effective products in the marketplace all
around the world (Pinyo and Worapishet 2018).
 Price: The organization do charge in some of the premium products or services
but the firm on the other application do charge on the usage from the connection
operator for usage of the data in the process (Zhang and Yang 2017). This
pricing strategy of the company is quite unique to understand by the consumers.
 Place: Tencent provide its service with the help of online services and that is the
sole reason the place is vast for the organization to expand. The firm can easily
expand all around the world in less possible time as they mainly deals with the
help of the internet in the process (Sam, Li and Chatwin 2016).
 Promotion: The promotion of the firm are generally done online with the help
of the internet. With the introduction of the digital platform as well as digital
media, the promotion of the services and products of the company has become
easy and fast in the process (Paurova, Gogolova and Kliestikova 2019).
 People: The people of the organization are the teenagers as well as the kids and
adults in the marketplace all around the world who likes to play video games.
Pubg is the most downloaded game in the playstore which is being produce by
the firm. So, it can be said that the company possesses loyal people in the
marmetplace both domestically as well as internationally (Tang 2019).
 Physical Evidence: There is no physical evidence of the organization, which
considered to be a disadvantage for the organization. This is so as they only
possesses headquarter in China and not in the other parts of the world. This need

7PRINCIPLE OF MARKETING: TENCENT
to be look after so that they can win over the trust of the consumers in the
marketplace (Blagoev and Minkov 2017).
 Processes: The processes of the firm is quite unique as they operate entirely
with the help of the internet in the marketplace. This benefit the company to
reach out to the customers in an effective as well as efficient way possible and
assist them to obtain the success in the process (Mavritckaia 2018).
4.0. Recommendations
There are few recommendations that requires to look after by Tencent so that they can
operate in an effective way possible in the domestic as well as in the international
marketplace. This is critical for the firm to understand so that they can obtain the success in
the marketplace and they are:
4.1. Recommendation for Needs of the Customers
The brand requires to look after the opportunity that they possess in the
marketplace regarding the understanding the needs of the customers as well, which
will enable them to achieve the success in the process. The organization also requires
to overcome the weakness as they only produce more numbner of application and
games in the marketplace and can look after the product as well as price so that they
can target the teenagers as well as adults and kids all around the world which will
increase the data trafficing of the organization.
The people need to look after by the company so that they can effectively as
well as efficiently target the people in the marketplace, which will help them to obtain
the success that they are looking forward in the process. This is an essential factor that
need to be look after in the marketplace as this will assist the company to generate
large amount of revenue in the end. Therefore, it can be said that the company need to

8PRINCIPLE OF MARKETING: TENCENT
look after the product as well as pricing strategy and people whom they are targeting
in the marketplace. This will automatically enable them to obtain the success in the
marketplace and target more people in the end.
4.2. Recommendation for Customer Segmentation
The company requires to look after place where they are targeting the
customers so that it can be effective in the process along with that promotion requires
to be done in an efficient way so that it can add a greater number of consumers in its
customer database. The brand also looks after the processes that they are using to lure
the customers from the marketplace as it is essential for the growth of the organization
in the marketplace. As the company possesses the physical presence in the limited
location so the customers to lure is quite limited in the process. This need to
understand so that it can expand the location of operation in the marketplace.
These are essential for the company to expand in the marketplace and to
achieve the success in the process. This will ultimately enable the organization to
operate in an effective way possible so that they can add the customers in the
database, which is necessary for the expansion of the organization in the domestic as
well as in the international marketplace. Hence, it is crucial for the organization to
look after the place, promotion as well as process and physical presence which will
enhance the brand image in the marketplace.

9PRINCIPLE OF MARKETING: TENCENT
5.0. References
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multicultural markets. In Research Handbook of Marketing in Emerging Economies. Edward
Elgar Publishing.
Chen, H., Zhang, L., Chu, X. and Yan, B., 2019. Smartphone customer segmentation based
on the usage pattern. Advanced Engineering Informatics, 42, p.101000.
Emch, A., 2016. Effects Analysis in Abuse of Dominance Cases in China-Is Qihoo 360 v
Tencent a Game-Changer. Competition L. Int'l, 12, p.11.
Greeven, M.J. and Wei, W., 2017. Business Ecosystems in China: Alibaba and Competing
Baidu, Tencent, Xiaomi and LeEco. Routledge.
Long, Y. and Liu, L., 2017. How green are the streets? An analysis for central areas of
Chinese cities using Tencent Street View. PloS one, 12(2).
Mavritckaia, E., 2018. Developing Confectionary Store’s Digital Marketing Case company:”
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Paurova, V., Gogolova, M. and Kliestikova, J., 2019. THE IMPACT OF THE COMPANY'S
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Pinyo, W. and Worapishet, T., 2018, June. The Relationship between Customer Loyalty and
Marketing Mix Satisfaction of Music Streaming Service. In Proceedings of International
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Sam, K.M., Li, H.L. and Chatwin, C., 2016. Understanding the adoption of online language

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learning based on e-marketing mix model. Journal of Information Technology
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Tang, M., 2019. Tencent: The political economy of China’s surging Internet giant. Routledge.
Wu, B., Chen, W., Fan, Y., Zhang, Y., Hou, J., Liu, J. and Zhang, T., 2019. Tencent ml-
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Yuping, Z., Jílková, P., Guanyu, C. and Weisl, D., 2020, March. New Methods of Customer
Segmentation and Individual Credit Evaluation Based on Machine Learning. In “New Silk
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and Li, Y., 2016, December. Application-aware and software-defined ssd scheme for tencent
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