Vodafone Marketing Strategies: A Comparative Analysis

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MARKETING ESSENTIALS
VODAFONE

Table of Contents
INTRODUCTION..................................................................................................................2
LO1....................................................................................................................................3
LO2....................................................................................................................................8
LO3...................................................................................................................................13
CONCLUSION....................................................................................................................20
REFERENCES.....................................................................................................................21
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INTRODUCTION
Marketing is an essential aspect of business which helps in increasing the sales and
profitability of the company. The report examined the role and importance of marketing in
the business and its functions. The duties and responsibilities of a marketing manager are
analyzed in the report along with its relevance in the context of an organization. The
connection between various functional departments of the company with the marketing
department is examined in the report. The different marketing strategies adopted by the
company are analyzed in the report which includes marketing mix strategy. The marketing
strategies used by Vodafone and BT group are explained with a motive of promoting their
brand are explained in the report. The role of the marketing department in the business
organization is discussed along with its importance for attaining goals and objectives of the
company. At last, marketing planning is done for the company by using different aspects of
marketing for achieving success for the business.
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LO1
KEY ROLES AND RESPONSIBILITIES OF MARKETING FUNCTION ROLES AND
RESPONSIBILITIES OF MARKETING IN RELATION TO WIDER ORGANISATIONAL CONTEXT
The activity which helps in serving goods and services to the customers in exchange for
some price is known as marketing. It is the combination of one or more components of the
marketing mix in the process of promotion of goods and services of the company (Business
Dictionary, 2019). All the activities covered in the process of promotion of products and
services of the business organization in the market. The information regarding the products
is given to the customers so that brand awareness can be created with the help of
marketing (Forsey, 2019). The marketing department is the area of the company which
conducts research and development, promote products in the market, and identify the
needs and demands of the customers. The relationship with the customers are built by the
marketing department so that future business opportunities can be created (Martin, 2015).
The key roles and responsibilities of the marketing function of the business entity
Market Research
The market research covers the analysis of needs and wants consumers in
the market by the company. The market research help in researching the
market conditions of an existing product or new product in the market.
The marketing mix uses this market research to ascertain the demand of
a consumer for goods and services they are providing to the customers.
This research tells the result economically which can be easily
understandable and worked on. The market research can brief that the
product will prove to be a success in the market or not as the satisfaction
of the customer is the key factor for success in the modern market.
Promotion
Promotion is one of the 4 P of the marketing mix and hence hold a very
important place for marketing a product in the market. It involves the
fame or customers attraction towards the product which is used to boost
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the sale. There is a various method of promotion like a free sample, a
quantity discount, lucky draws, etc. This method promotes both the new
or old product efficiently in the market and attract customers very easily
and persuade them to try the product at least once. The method is very
important as it motivates the customers to buy the product and promotes
the product.
Product Development
The market promotes the process of evolution of products and services
which makes the product development a necessity. It includes the
development of both the process of enhancement and evolvement of the
old and new product in the market. The method is undertaken by the
marketing research tool which shows the customers demand and
preferences for the new product and also states the drawbacks of the old
one. With the help of marketing research, product development is done
according to market and customers’ needs and wants.
Transportation
Transportation involves the process in which the products are made easily
available to the customers’ approach so that they can buy them
conveniently. The transportation increases the cost of the company but
for an individual product, the whole cost is distributed and does not
burden the customer as well as the company. Transportation also uplifts
the sell so it seems to be a good marketing method by investing capital in
transportation. It does not include only transferring of goods but also
storage and warehousing are considered under the same process. It
makes feel easy for the customers to buy the product from anywhere at
any time on their convenience.
Service and Support
Service and support are the tools which are expected by the customers
after the purchase of the product. This includes sale services, warranty,
guarantee, and replacement schemes, customer complaints, etc. The
customer must feel satisfactory after the sale of the product which is
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ensured with the help of service and support. This process makes the
customers buy the product next time also and make repeated purchases.
Also, the company can get the feedback by the customer to improve the
product making a way of market research.
Packaging
The packaging is also a useful method of marketing which are used to
describe the information, protection and attract the customers. The
packaging is done to protect it from the environment and increase the life
and protection from damages during transportation. It is done to notify all
the information which are related to the product for the customers which
includes mainly the label and brand name. The packaging is also now
done to make it attractive to customers by some design or information or
some eye-catching color. There are three types of packaging are primary,
secondary, and tertiary packaging.
ROLES AND RESPONSIBILITIES OF MARKETING IN THE CONTEXT OF THE MARKETING
ENVIRONMENT AND INTERRELATIONSHIP BETWEEN MARKETING AND OTHER
FUNCTIONAL UNITS OF AN ORGANISATION
There are many internal and external factors which affect the functions of
business organization which are explained as follows:
Internal factors
The internal factors are the factors which developed inside the business
organization which is in control of the management. These factors have a
subsequent effect on the business and marketing functions of the
company. These factors include the five Ms of business which is Man,
Machinery, Material, Money, and Markets. The internal environment can
be changed by the marketing manager for promoting the aims and
objectives of the marketing department of the company. The internal
factors are also affected by the changes and modifications takes place in
the external environment of the company.
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External factors
The external factors are the components which are outside the business organization and
cannot be controlled by the management. There are mainly two kinds of the external
environment which include the micro and macro environment.
Microenvironment
 Suppliers – the suppliers include the persons who supply goods and services to the
company.
 Partners – the partners are the associate parties of the company which shares profits
and losses of the business.
 Customers – the customers include different companies, individuals, retailers, and
other sellers who purchase goods and services.
 Competitors – the competitors are rivals of the company which competes in the
market by selling similar products and services.
Macro environment
The macro environment includes different factors which affect the functions of the company
and are out of the control of the business entity. Following are the factors of the macro
environment:
Laws
The legal structure framed by the local as well as the state government of the country
includes in the macro environment. There are both favorable and unfavorable changes in
the legal environment which can foster or hinder the growth and success of Vodafone.
Economic situation
The economic situation in the market includes a rate of inflation, interest rate, economic
crisis, buying pattern of consumers, and another related pattern which determine success or
failure of Vodafone. The information about the economic condition of the market helps the
management in creating suitable policies and strategies.
Customer demands
The demands of customers can be understood with the help of market research which is
another important factor of the macro environment which affect the marketing decisions of
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the company. Fluctuation in the needs and demands of the customers result in changing
marketing decision and strategies on the part of the company.
There are different departments of the company which are working together for achieving
the goals and objectives of the company. The connection and interrelationship between
these departments are essential with the marketing department for ensuring the success
and growth in business which is explained below:
 Research and development department
The research and development department helps the company in understanding the
current needs and demands of the customers which help in making modifications in
the marketing strategies of the company. Innovative and new ideas are developed in
the research and development department to help the marketing department in
delivery quality and unique products in the market.
 Human resource department
The human resource department helps in recruiting, selecting, training, developing,
and managing the human resources for the marketing department of the company.
The HR department is used by the marketing manager of the company for recruiting
the right workforce for the marketing department.
 Sales department
The sale of products and services of the company can be increased with the help of
the marketing department. The information about the aspects and features of the
products and services to the customers which help increase the turnover of the
company.
 Finance department
The finance department of the company help in establishing budgets for the
marketing function of the marketing department. The costs and expenses of the
company are increased if the functions of the marketing department exceed the
budget set by the finance department.
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LO2
COMPARISON OF WAYS OF APPLICATION OF MARKETING MIX BY VODAFONE AND BT
GROUP
Vodafone is a telecommunication company which provides mobile network all over the
world which was established by Ernest Harrison, Gerry When in the year 1982. The
headquarters of the company is situated in London and the United Kingdom. The chief
executive officer of Vodafone is Nick Read which is a British multinational telecom company.
There are around 313 million customers who are served by Vodafone which has 111556
employees. Fixed line telephone, broadband, digital television, mobile phone, internet
television, and IPTV are the list of some of the products and services served by Vodafone.
BT Group is a public limited company which serves its customers by the telecommunication
which was established in the year 1969. BT Centre, United Kingdom, EC1, and London are
some of the locations where the headquarters of BT Group are situated. Fixed line
telephone, broadband, fleet management, digital television, supply chain management,
mobile phone, internet television, home security, and telecommunication equipment are
some of the products and services of BT Group. There are around 106400 employees
working in the BT Group and has operated in more than 180 nations.
The marketing mix is a comprehensive business tool which helps the management of the
company which is a combination of 7Ps. The components of the marketing mix are correctly
combined in order to develop an effective business strategy for the company (Business
Dictionary, 2019). The strategy of the marketing mix was developed by E. Jerome McCarthy
in the 1960s. Product, price, promotion, place physical evidence, process, and people are
the 7Ps of marketing mix which are explained below for Vodafone and BT Group:
Products
The products of Vodafone include telecom services like pre-paid, post-paid, and other Value
Added Services (VAS). Fixed line telephone, broadband, digital television, mobile phone,
internet television, and IPTV are some of the services provided by Vodafone. The company
provides communication products and services all over the world to cater to the different
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needs and demands of the customers. The products of BT Group include the fixed-line
telephone, broadband, fleet management, digital television, supply chain management,
mobile phone, internet television, home security, and telecommunication equipment. The
company believes in bringing innovative services to its customers with the change in
technology and internet services. The products and services of BT Group is a complete blend
of new and old technologies which are used by the company for delivering high-class
services to its customers.
Price
The products and services provided by Vodafone are of quality and strong accessible and
the company has used a competitive pricing strategy for promoting its brand in the market.
There are different products and services of Vodafone which are provided at various rates in
different countries according to the competition rate and prices. BT Group has used
numerous pricing strategies for its products and services in the market as a part of its
marketing mix strategy. There are competitive pricing strategy used by the company in
some market and cut down cost strategy in another market. The main idea is to cope up
with the competition in the market by the company by using different price strategies.
Promotion
Vodafone has used different brand ambassadors such as Mary Kom, David Beckham,
Michael Schumacher, and other stars for promoting their products in the respective local
markets where these stars are famous. Vodafone has used many methods for promotion of
its products and services which include social media sites, advertisement in TV, print,
Billboards, etc. BT Group is an old telecom company which is serving its customers over
many years and has used different advertising techniques for promoting its products and
services. These advertising techniques include the website, sponsorship, discount offers, buy
one get one free offer, and other similar methods.
Place
Vodafone sells its products and services through various retail stores all over the world
along with the help of different distribution channels. The company has a strong distribution
network all over the world which has the second largest network of mobile in India. The
company has improved its network services from 3G to 4G to serve a large number of
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customers at different places. The current and future trends of the market are analyzed by
BT Group for choosing its distribution network in the country. The company has used
different distribution channels which include various modes of communication such as
sending emails, door to door services, sending posts, and other leaflets.
Physical evidence
The physical evidence of Vodafone can be known with the help of the sim cards which was
issued by the company. The components of physical evidence include recharge vouchers,
digital TV services, service outlets, stores, and other facilities provided by the company. BT
Group is currently operating in more than 180 nations in different parts of the world and
serving its customers with the help of its stores which are situated in different locations.
There are different services which are provided to the customers which are used with
attractive punch lines to attract more and more customers.
Process
The process of Vodafone includes conveniently available stores where the products and
services of the company are sold. The top-ups are easily available to the customers of the
company and they are provided services with very good mobile network services. Vodafone
has its functional towers at various places which provide strong signal strengths for the
customers of the company. BT Group has its main headquarter in London which operates its
function mainly from London. The processes of the BT Group are very easy and conveniently
accessible by the customers of the company. The company has improved its process and
make them user-friendly according to the choice of its customers.
People
There are around 111556 employees working for Vodafone all over the world to provide
world-class high-level services of mobile networking to its customers. There are more than
400 million customers who are served by the company in different countries of the world.
The customers, as well as the employees of the company, are given the highest priority by
the management of the company. BT Group provides satisfactory services and products to
its customers by using its resources effectively in its processes. The healthy competitive
environment is set by the company within its organization along with establishing a high
level of interaction between the people of the company.
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DIFFERENT TACTICS APPLIED BY ORGANISATIONS TO DEMONSTRATE ACHIEVEMENT OF
BUSINESS OBJECTIVE
When the company uses the situations and conditions of the market for the benefit of the
business, it is known as developing business tactics (Mar, 2013). Business strategies and
business tactics both are the two different aspects of the company. The strategies are made
to support the goals and objectives of the company and the business tactics are the actions
of the company which are taken to support the strategies (Duff, 2019).
Ansoff matrix is the marketing tool used by the business organization for developing a new
product or a new market for the company. There are four main business techniques which
can be used by the company in the Ansoff matrix. Market penetration, market development,
product development, and diversification are the four main components of the Ansoff
matrix (Hanlon, 2018). The explanation of the Ansoff matrix is given in the following report
along with different factors of the matrix:
 Market penetration
The market penetration is a strategy suggested by the Ansoff matrix which allows the
company to enhance its products and services for selling them in the existing
market. It is a marketing strategy which is used by the company when the sale for
the existing products and services of the business entity are reduced and the
company wants to increase sale in the current market. There are different methods
through which market penetration is achieved by the company which includes
reducing prices of current products. The promotion and advertising of the products
and services in the existing market can be improved by the business organization.
 Product development
Product development is the strategy which can be used by the management of the
company where new and innovative products and services are developed by the
company and sold in the existing market. It is a strategy of expansion of the product
line of the company in the same market by adopting a number of techniques. The
product development can be done with the help of research and development of
new products. Mergers and acquisition is another way for product development of
the company in order to create innovative products and services for existing
customers.
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