1. Marketing for Telecommunications
Operators Projects
Sergio Cruzes
MBA in Project Management and Technological Innovation – FIPE USP
MsC in Electrical Engineering – EESC USP
PMP certified
2. Table of Contents
Table of Contents ................................................................................................................ 2
1. INTRODUCTION ...................................................................................................... 3
2. CONTEXT .................................................................................................................. 4
3. END USERS ............................................................................................................... 5
4. BROADBAND OFFERINGS .................................................................................... 7
5. MACRO ENVIRONMENT........................................................................................ 8
5.1 Social and Cultural environment .............................................................................. 8
5.2 Demographic environment........................................................................................ 8
5.3 Economic environment ............................................................................................. 9
5.4 Technological environment .................................................................................... 9
5.4 Political environment ............................................................................................ 11
6. INTERNAL MICRO ENVIRONMENT .................................................................. 12
7. KEY SUCCESSES FACTORS ................................................................................ 13
8. BUSINESS SUMMARY FRAMEWORK ............................................................... 14
9. BUSINESS CONCEPTION ..................................................................................... 15
9.1 Business Plan Definition ......................................................................................... 15
9.2 Strategic Planning ................................................................................................... 16
9.3 Purpose of the Organization: Vision, Mission, Believes & Values, and Objectives
....................................................................................................................................... 18
9.4 Generic Competitive Strategies .............................................................................. 19
9.5 Marketing Strategy.................................................................................................. 20
9.5.1 Marketing Plan Definition ............................................................................... 20
9.5.2 Market Segmentation ....................................................................................... 21
9.5.3 Marketing Mix ................................................................................................. 23
10. REFERENCES ...................................................................................................... 25
3. Acronyms and Abbreviations
2G Second-generation mobile network technology
3G Third-generation mobile network technology
AAA Authorization, Authentication and Accounting
ADSL/DSL Asymmetric Digital Subscriber Line
ARPU Average Revenue per User
BTS Base Transceiver Station
BWA Broadband Wireless Access
CAGR Compound Average Growth Rate
Capex Capital Expenditure
CDMA Code Division Multiple Access
CPE Customer Premises Equipment
CRM Customer Relationship Management
DOCSIS Data Over Cable Service Interface Specification (Cable Modem)
DSL Digital Subscriber Line
EVDO Evolution Data Only
FTTH Fiber to the Home
Gbps Gigabits per second
GSM Global System for Mobile Communications
HSPA High-Speed Packet Access
IBGE Brazilian Institute of Geographic and Statistics
IEEE Institute of Electrical and Electronics Engineers
IMS IP Multimedia Subsystem
IP Internet Protocol
IPC Potential Index of Consumption
IPTV Internet Protocol Television
LTE Long Term Evolution
MIMO Multiple-Input Multiple-Output
MMDS Multichannel, Multipoint Distribution System
OFDM Orthogonal Frequency Division Multiplexing
OPEX Expended Costs
PC Personal Computer
PMP Price per Megahertz per Pop
QoS Quality of Service
RAN Radio Access Network
SLA Service Level Agreement
VDSL Very High Bit-rate Digital Subscriber Line
VoIP Voice over IP
xDSL any type of DSL
WBS Work Breakdown Structure
WiMAX Worldwide Interoperability for Microwave Access
4. 1. INTRODUCTION
This job consists in providing the factors that influence the marketing
activities concerned with new projects in Telecommunications Operators. It is
the marketing related to the strategic planning of the organization.
The study begins with the analysis of the micro-environment followed by
macro-environment analysis. Other factor to be analyzed is the technological
environment that concerns with the availability of user devices.. On the legal-
political environment, aspects such as spectrum availability and restrictions
should be considered.
Keywords: Marketing ♦ Strategic Plan
2. CONTEXT
The service growing rate of circuit switching telephone systems is starting
to decrease in Brazil and Latin America.
So, Telcos are investing in fixed broadband access technologies which are
showing high growing rates.
Also, Cellular operators are also noticing a decreasing on their growing
rates for voice services. At the same it is very difficult to provide differentiated
voice services. The price competition is one main drivers of the voice revenue
stagnation.
For most cellular operators in the world, the mobile data revenue has
reached more than 30% of the service revenues while in Brazil there is still room
to grow.
5. 3. END USERS
For the end-user media consumer, the open TV main content provider in
Brazil. However it is beginning a trend to search for different forms to access
content , entertainment or information, at devices such as PCs and mobiles.
The group of users that is constantly searching for information on different
channels other than TV, is composed of persons under 35-year old (Accenture
study published at Converge Magazine in 13/April/2009).
A study done by Yankee Group and Ericsson shows that the 3G user in
Brazil is predominantly young (Teletime news, 29/July/2009).
The social classes in Brazil are distributed as per Exhibit 5.1 (source:
Associação Brasileira de Pesquisas, 2009)
Family average income per month (Reals)
16000 14400
14000
12000
10000 8100
8000
6000 4600
4000 2300 1400
2000 950 620 440
0
A1 A2 B1 B2 C1 C2 D E
Exhibit 3.1 – Social classes in Brazil and family income per month
Based on a report of the Exame magazine (08/April/2009) about the
consumption of the Brazilian families and IBGE information, it can be derived that
the social classes in Brazil are distributed as per Exhibit 5.2.
6. 30,00%
25,40%
25,00% 21,80%
20,70%
20,00%
15,70%
15,00%
Percentagem Brasil
8,90%
10,00%
4,10%
5,00% 2,60%
0,90%
0,00%
A1 A2 B1 B2 C1 C2 D E
Exhibit 3.2 – Social classes percentage in Brazil
In order to better estimate the total potential users based on income salary,
the table 5.1 simplifies the number of classes. The total potential number in Brazil
is 15,789 thousand users.
Percentage of People Wireless
the Brazilian between 20 - internet Potential
Classes population 30 years old (potential) users
A and B 29.60% 11,248 85% 9,560.8
C 42.50% 16,150 30% 4,845
D and E 28.00% 10,640 13% 1,383.2
Table 3.1 – Potential internet users in Brazil based on the income salary
7. 4. BROADBAND OFFERINGS
The cable modem access reaches only 184 cities representing 74 million
people, or 40% of Brazilian population which represents 53% of total Brazilian
consumption in accordance to the IPC/Target.
While the broadband competitiveness is so tough, the end user has few
choices. The leader subscription service is called Speedy (from Telefonica and it
is present only on the state of São Paulo).
The exhibit 4.1 depicts the main fixed broadband offerings in 2009.
Fixed Broadband Operators (in thousand
subscribers)
2460
2500
2120
2000 1920
1762
1500 1320
1000
500 402
80
0
Telefonica NET Oi Brasil Telecom CTBC GVT TVA
Exhibit 4.1 – Fixed Broadband Operators in 2009
An analysis done by IDC in July 2008 (published at
www.puccamp.br/servicos em 06/07/2009), provides the broadband access
prices in Brazil. The average price of minimum throughput (128 Kbps) was US$
30. In Argentina, 512Kbps was US$ 27.05.
8. 5. MACRO ENVIRONMENT
As per KOTLER (1995, p. 49), the macro environment consists of the
forces that affect the whole micro environment: demographic, economic,
technological, natural, political and cultural.
5.1 Social and Cultural environment
The cultural characteristics of the areas to be serviced by a wireless
broadband business are very non-homogeneous. The service should be
segmented during the implementation phase only. The final goal is to provide a
service that is not focused for specific population profiles .
5.2 Demographic environment
The demographic environment is a very important force since it consists of
the population profile in terms of its age, ethnics, immigration, education level,
lifestyle, etc.. As these trends are out of control of the company, it is important to
anticipate the movement of the trends, to develop scenarios and to provide a
constant adjustment on the market strategies.
The observation of the demographic environment trends allow to develop
geographic, ethnics, income salary and age segmentation strategies.
The geographic segmentation is extremely important for a
Telecommunication Operator deployment project. It allows identifying areas with
great growth potential and low level of competition. It is on these areas that the
deployment should start.
9. 5.3 Economic environment
The main implications of future changes on the economic environment are
related to the demand. The demand is very sensitive to the variations of the
economic activity and any well defined plan may fail if it ignores the influence of
the economic environment.
Brazil, which has the fifth greater population and the eighth consumer
market in the world, it is becoming one of the best options for business in the
world. The internal market growth and the continuous class C expansion have
boosted the consumption in Brazil.
As per magazine Exame (08/April/2009), the Class C spends its income
salary as:
• 21% at commercial establishments (supermarket, drugstores)
• 11% with transport (bus, subway, gasoline, taxi)
• 10% with food (restaurant, groceries, snack bars)
• 8% with entertainment (gifts, sightseeing, internet)
• 7% with basic services (telephone, light, water, house rent)
Based on this scenario, it is expected a high demand of broadband services
on the next years.
5.4 Technological environment
At highly competitive segments, the technology is a key determinant factor
for the business continuity. The innovations which aggregate product and
service value affect the end user perception, creating a maximization of the cost
benefit and an increase on the competitive advantage.
10. The main deployed technological solutions to offer broadband services in
Brazil is the UMTS with its HSPA platform. Other mobile technologies that offer
wireless data are GPRS and EDGE from GSM networks and 1xRTT and
1xEVDO from CDMA networks. MMDS operators also offer wireless internet
(radio connection).
The mobile broadband HSPA is the dominant technology. If we consider
the UMTS cellular phones and 3G data devices, they represent 96% of 3G
accesses in Brazil (source: Teleco).
Regard the fixed telephone market, the operators are updating their ADSL
networks with ADSL2, ADSL2+, VDSL and also are beginning to deploy the
FTTH technology.
The Exhibit 5.1 depicts a performance comparison among different
technologies
Peak Throuput
Access Technology Mode Downlink Reach
WiMAX* 3,5 GHz - 5 MHz <1.0 km
bandwidth FDD Wireless Fixed 15 Mbps (urban area)
WiMAX* 2,5 GHz - 5 MHz Wireless <1.25 km
bandwidth TDD mobile 10 Mbps (urban area)
WiFi (802.11a/b/g) Mobile < 54 Mbps < 0.1 km
ADSL Fixed 8 Mbps 3 km
ADSL2 Fixed 12 Mbps 1.5 km
ADSL2+ Fixed 24 Mbps 1.5 km
VDSL Fixed 50 - 100 Mbps 0.4 km
FTTP (BPON-ATM) Fixed 622 Mbps 20 km
FTTP (EPON-Ethernet) Fixed 1.250 Gbps 20 km
FTTP (GPON-Ethernet/GEM) Fixed 1.244 Gbps 20 km
FTTP (GPON-Ethernet/GEM) Fixed 2.488 Gbps 20 km
EVDO* rel A - 1.8/1.9 GHz - Wireless
1.25 MHz bandwidth mobile 3.1 Mbps <1.7 km
HSPA* 1.8/1.9 GHz - 5 Mhz Wireless
bandwidth mobile 14.4 Mbps <1.7 km
HSPA+* 1.8/1.9 GHz - 5 MHz Wireless
bandwidth mobile 28 Mbps <1.7 km
Exhibit 5.1 – Technology performance comparison among different technologies
* Reach refers to a throughput that is less than the peak value
11. 5.4 Political environment
The political and legal environment is composed of laws, government
agencies and pressure groups that influence and restrict the actions of the
companies. The political environment provides great restriction over the
organizations and individuals.
In July 2009, Anatel proposed a smoothly reduction on the TV operators
frequencies in the 2.5 GHz band. The proposal consists in reducing the available
spectrum from 190 MHz to 70 MHz in 2012 and from 70 MHz to 50 MHz in 2015.
To start a WiMAX operation, 50 MHz may be enough. But 50 MHz of spectrum
eliminates any possibility of expansion. It may be possible one or two operators
in the same region with 25 MHz of spectrum without considering the band guard
that may reach 5 MHz. In Portland, USA, Clearwire started its operation with 30
MHz of band and can increase the spectrum usage until 120 MHz (source:
Teletime magazine, August 2009).
The great movement on this area was the TVA acquisition by Telefonica in
the cities of São Paulo, Rio de Janeiro, Curitiba and Porto Alegre. It is
commented that Telefonica paid between R$ 1 billion and R$ 1.6 billion and that
most part of this value was due to the acquisition of the spectrum which is
currently used by MMDS operation (2.5 GHz range). Recently Telefonica
acquired Vivo which means that their interest on WiMAX may not exist anymore.
Anatel intends to use the 2.5GHz spectrum with services such as LTE.
The 3.5 GHz spectrum range is another band to be used for WiMAX.
There are few operators on this range such as Embratel (whole country license),
Brasil Telecom (license for 12 ANs), Grupo Sinos (AN RS1), Neovia (DirectNet)
in the state of São Paulo, and WKVE (6 ANs in the states of Minas Gerais,
Espírito Santo and Bahia).
12. 6. INTERNAL MICRO ENVIRONMENT
The internal micro environment considers the resources, capabilities and
the essential competencies of an organization which although they do not
provide an intrinsic value, they represent value when seen by the possibility of
generation of competitive advantage for the enterprise, providing return on
investment above the average (CECCONELO e AJZENTAL, 2008 p. 114).
The deployment and operation of a Broadband network require diverse and
different competencies of human resources and also from the organization. The
competence of an organization represents the summation of the learning of all
groups of abilities both at personal level and organizational level (Hamel
ePrahalad (1995, p.233).
Basically the competencies required to deploy and operate a Broadband
network are:
• Knowledge and experience with radio-frequency engineering (it
requires knowledge and experience with propagation, network
design, antennas, etc). The challenge is to design a network to meet
day one requirements as well as future requirements
• LTE technology knowledge on both access and core sides
• Cellular network deployment experience
• Experience in site acquisition and site sharing
• Technological group to evaluate infra-structure equipment as well as
device hardware
• Experience in network operation, CRM, IP, billing, security and
services
• Marketing experience: coverage area segmentation and priorities,
traffic estimation and growth prediction, business models, subscriber
packages positioning, competitors knowledge
13. As already commented on this paper, the content is the crucial part of the
wireless broadband business. Users are not only interested on the broadband
pipe. They want the applications and services that the broadband can provide.
This means that the broadband provider needs to do partnerships with content
distributors and also brings to the market the more advanced end-user devices.
7. KEY SUCCESSES FACTORS
The business and competitor knowledge will allow determining the key
successes factors which are the minimum requirements that are necessary for a
enterprise to compete with possibilities of success.
Based on literature, it is known that main success factors for a Broadband
network operation are the availability of Modems for fixed networks, laptops,
smartphones and tablets for wireless networks and also service price and the
cost of the backbone access to internet for any type of network.
Regarding the project deployment, the main success factors are the choice
of an infra-structure provider totally engaged with the technology. Also, it is very
important to minimize the number of additional providers for IP network, BTS
backhaul, data servers, civil infra-structure, site acquisition. Other important
success factors are definition of site priorities; maximize site sharing options, and
a presence of a very skilled deployment team.
14. 8. BUSINESS SUMMARY FRAMEWORK
In accordance to CECCONELLO and AJZENTAL (2008, p. 134), it is
important to aggregate all related information that concerns to the business plan
in a table in order to make available a qualitative and quantitative summary about
the aspects that can and cannot interfere directly or not directly in the business
that is being proposed. The elaboration of this frame intends to bring to the table
an integrated view about different existent variables that are pertinent to the
proposed business, pertinent to the definition of the business and to the generic
and marketing strategies.
15. 9. BUSINESS CONCEPTION
The goal of this chapter is to provide a base foundation for, given the
opportunities analysis, to structure and develop a strategic proposal for , in the
sequence, to verify its viability.
9.1 Business Plan Definition
The business plan is a tool in which the entrepreneurs employs it in order
to detail their ideas in a concise way based in assumptions of quality where it is
demonstrated its viability and the probability of the business success.
In accordance to Chiavenato (2005), the business plan consists of an
anticipated planning in which the entrepreneur, based in a collection of data and
information about a business, try to make it viable
Business plans are needed at different scenarios. They can be used to
expand a manufacturer plant, to verify the viability in attending a new market, to
manufacture a new product, to offer a new service.
This study will show a business plan for a new business. This plan has as
the first goal to dissolve doubts for a possible decision maker about the quality of
the plan
In accordance to CECCONELLO and AJZENTAL (2008, p. 146), the
challenge of every business plan is to identify precisely the reasons that suggest
its elaboration. The reasons can be understood as the characterization of a
problem motivated by the uncertainties about the viability of the business. The
economic- financial analysis will reflect the verification of the hypothesis and
variables concerned to the problem under study.
In order to obtain a very trustful and solid economic-financial analysis, it
should be necessary to perform an exploratory research that connects trends
and correlations with the observed facts in the environment of the business.
16. 9.2 Strategic Planning
It is seen that there is a kind of difficulty to define the planning function in
the enterprise world, to define its real magnitude and reach (OLIVEIRA, 2007, p.
3). Steiner (1969, p. 12) defined five dimensions non-reciprocally exclusive and
without very defined borders of the planning:
• Subject of interest: manufacturing, research, new products, finance,
marketing, installations, human resource, etc.
• Planning elements: intents, objectives, strategies, politics, programs,
budget, standard, procedures, etc.
• Time dimension: long-term, medium-term or short-term
• Business unit: corporate planning, business unit strategy planning, affiliate
planning, functional groups planning, division planning, department planning,
product, services, etc..
• Characteristic: complex or simple, quantity or quality strategic or tactic
planning, public or confidential, formal or informal, expensive or non expensive
So, the planning is defined as a process based on the five shown
dimensions, done to reach a future scenario in more efficient and effective way,
using optimized efforts and resources from the organization.
In accordance to SLACK et all, (2002 p. 87), strategy is the global standard
of decisions and actions that position the organization on its environment and
has the mission to make it reaches its objectives of long term run. These
decisions will take place before, during and after the elaboration and deployment
of the plan.
The planning can be distinguished into three types: strategic, tactic and
operational.
17. According to OLIVEIRA, (2007, p. 17), the strategic planning is the
administrative process which provides marketing sustentation in order to
establish the best direction an organization should follow, aiming an optimized
level of interaction with the external factors - non manageable – and acting in an
innovative and differentiate way.
According to FISCHMANN and ALMEIDA (1991, p. 25), strategic planning
is an administrative technique which based on the organization environment, it
creates the conscious of the opportunities and threats, strengthens and
weaknesses of the organization for the accomplishment of its mission. Based
on this conscious, it is established the purpose of the direction that the
organization should follow in order to take advantage of the opportunities and
avoid risks.
According to OLIVEIRA (2007, p. 18), the objective of the tactic planning is
to optimize the results of determined area of the organization. So, it works with
the decomposition of the objectives, strategies and politics that were established
in the strategic planning. It is developed by the intermediate management levels
of the organization.
OLIVEIRA, (2007, p.19) defines operational planning as the formalization
of the methodologies of development and deployment of specific results to be
reached by the functional areas of the organization.
The subject matter of this work is the supply of wireless broadband
services and contents with an objective of return on investment in seven years.
The scenario that is expected for the next years (2011 – 2015) is
characterized by a sustainable economic growth (better than 4% a year). The
increase in the power consumption of the population will stimulate the
appearance of new services and increase the dispute among cellular operators,
internet via Cable Modem and ADSL service providers.
18. 9.3 Purpose of the Organization: Vision, Mission, Believes &
Values, and Objectives
According to CECCONELLO and AJZENTAL, (2008, p. 149), the purpose
of one organization gathers vision, mission, believes & values, and objectives,
which help the arrangement of the organization. These aspects are important in
order for the entrepreneur to build the identity of its business, establishing the
organization climate, the standard of behaviors to be followed, what is really
being pursued on its business.
According to OLIVEIRA, (2007, p.65), the vision is defined as the limits that
the owners and main executive people can visualize within a certain period of a
longer time and one wider approach. Within this context, the vision provides a
solid outline of the strategic planning to be developed and deployed by the
organization. The vision represents what the organization intends to be.
According to OLIVEIRA, (2007, p.107), the mission is the reason of being
of the organization. Therefore, it tries to find what is real business of the
organization, why it exists, what activities the organization will concentrate in the
future.
According to OLIVEIRA, (2007, p.67), the values represent a set of
foundations and fundamental beliefs of an organization, and at the same time
they provide sustentation for all your main decisions. The values should have a
strong interaction with ethical and moral values of the organization.
According to OLIVEIRA, (2007, p.141), the objective may be defined as a
state, situation or a future result that the executive intends to reach. It relates to
everything that implies in obtaining a final result. Objective is a target with a
defined execution deadline and assigned responsibilities.
According to OLIVEIRA, (2007, p.141), the objective may be defined as a
state, situation or a future result that the executive intends to reach. It relates to
19. everything that implies in obtaining a final result. Objective is a target with a
defined execution deadline and assigned responsibilities.
According to CECCONELLO and AJZENTAL, (2008, p. 155), the
objectives show a more quantitative approach of the company goals, on the
revenue, market share and profitability sides.
Four our business plan, there are:
• Vision: innovate and offer entertainment, information and communication
at any place
• Mission: provide excellence in content services
• Main objective: reach 360 thousand subscribers within five years
9.4 Generic Competitive Strategies
According to OLIVEIRA (2007, p. 181), strategy is defined as a path, or
way, or a defined and appropriate action to reach, preferably in a differentiate
way, the goals, the challenges and established objectives, in a better positioning
of the company in front of its environment.. The strategies may be defined in
accordance with the situation of the company, it may be related to the survival of
the company, growing or development .
Porter (1996) identified three generic competitive strategies which a firm
can face and tackle the competitive strengths of the industry in which the firm
acts: cost leadership strategy, level of differentiation, and scope of target market
or approach. These strategies are defined below:
• Cost Leadership: this strategy aims to obtain a cost structure that
is lower to the firm’s competitors, allowing it to obtain a great revenue volume.
The firms that adopt this strategy need to minimize costs by controlling
administrative, marketing, distribution, research and development, human
resources costs etc..
20. • Differentiation: the firm distinguishes its products in way that they
are noticed as unique on its industry. The differentiation may be in the offer of
products or services, on the deployed technology, on the delivery system, on the
market process, on the brand, style, performance, post-sale support, etc..
• Scope of target market: this strategy consists of concentrating the
efforts in a determined group of customers, in a product line segment or in a
specific market. This strategy is based on the assumption that a firm is different
when it better attends the needs of a specific market, or provide lower costs for
this specific market or both things.
For the proposed business plan, intends to be:
• Cost leader when compared to 3G systems. The differentiation
will appear as a consequence of the business. If a fixed wireline operator deploys
this project, it will be the only company to offer fixed and mobile broadband
access at the same time.
9.5 Marketing Strategy
The marketing strategy should be elaborated with the aim of reaching the
purposes of the organization and or of the business.
According to KOTLER & ARMSTRONG (1993, p. 367), the strategic plan
defines the mission and general objectives of the firm. Each business unit should
prepare its functional plans, including the marketing plan. If the business unit
consists of so many product lines, brands and markets, it may be necessary to
develop plans for each of them. The marketing plans may include product, brand
and market plans.
9.5.1 Marketing Plan Definition
21. According to CECCONELLO and AJZENTAL (2008, p.161), the marketing
plan integrates the interdependent elements of the marketing such as sales,
product management, customer assistance, advertisement, merchandise, sales
promotion, lobby, public relations, brand and distribution.
The marketing mix defines the strategic position of a product in the
market. It includes the four main variables that a firm can administer in order to
implement its market strategy: Product, Place (distribution), Promotion and Price.
According to CECCONELLO and AJZENTAL (2008, p.161), the marketing
plan should be specific for product line, by market and by region and must be
supported by the market research. The main objectives are to provide the
executive board a concise and complete financial and marketing summary report
containing the forecast result and objectives.
The proposed business plan intends to provide:
• Executive summary: the broadband service will attend firstly the
urban areas where there are greatest fixed broadband subscriber density
• Current market situation is dominated by a great expansion of 3G
broadband subscribers. 3G system quality is still a issue (EXAME magazine
report, 15/July/2009 p. 91)
• As described in the beginning of this work, there will be a great
demand for broadband services on the next years. This is the great opportunity.
9.5.2 Market Segmentation
1. Segmentation
Market segmentation consists of identifiable groups within a market:
Benefit segmentation consists in dividing a market into groups based
on the different benefits that consumers seek on a product or service
22. (people that seek for low prices, others that seek superior quality, and
others that seek service quality).
Demographic segmentation consists in dividing the market into
groups based on age, sex, education, income, religion, etc..
Occasion segmentation consists in dividing the market into groups
according to the occasion when the consumers get the idea, purchase,
use the product (e.g.: passengers traveling by business, by leisure or
emergency reasons
Usage rate segmentation means in grouping persons based on their
usage rate: heavy, medium, light, and nonusers of a product. For
instance, some people drink one cup of coffee per day (light users)
while others drink five or more cups per day (heavy users).
Life style segmentation is a type of psychographic segmentation
which consists in grouping persons or diving a market based on
preferences of their lifestyle (for instance high class people which
consume imported cigars and use sport cars, people that enjoy outdoor
life, etc)
According to KOTLER (2009, p. 45), the market professional can
concentrate its efforts into one or two segments and which of them
receiving the appropriate consideration.
2. Market Niche
KOTLER (2009, p. 45) defines niches as a group of small customers which
show more defined characteristics, or a unique combination of needs. By
concentrating in attending a niche provides some advantages, including the
opportunity of knowing each customer in a more personal way, to face less
competitors and sell services and products with a superior margin once the
customers intend to pay more for the fact of having their specific needs attended.
23. 3. Local Market
According to KOTLER (2009, p. 47), the firms may identify smaller
customer groups which share some characteristics and offer market
opportunities known as local market. Many companies provide customer
databases which contain information about demography, previous customer
purchase, preferences and other customer characteristics
Our business plan intends to:
• Use demographic segmentation: the network rollout will start in the
high income areas and reach the suburban areas in a later date.
9.5.3 Marketing Mix
The marketing mix, also know as the 4P’s - product, price, promotion, and
distribution (place) - translates into actions that should be performed in order to
influence the buyer.
As per CECCONELLO and AJZENTAL (2008, p.163), and KOTLER
(2009, p. 126), the 4P’s are described as:
• Product: attributes of any good, service, idea, person, institution,
etc., which potentially has an exchange value. It is featured by
variety, quality, design, brand, package, size, warranty,
reimbursement.
• Price: attributes that reflect the cost of the product to the consumer,
as the price itself, payment conditions, acceptance or not of credit
cards among others. It includes price list, discounts, licenses,
payment deadline, credit conditions.
24. • Distribution (Place): is everything that relates to the distribution,
physical location and logistics to make the product arrives to the
final consumer. It consists of channels, coverage, location, stock,
transport.
• Promotion: is the active communication process of the attributes
and benefits of a product for the intended target market. It is
characterized by sales promotion, advertisement, sales force, public
relations, direct marketing.
KOTLER (2009, p. 127) considers the inclusion of two other P’s that are
very important for the global market: politics and public opinion.
CECCONELLO and AJZENTAL (2008, p.164) state that when a service is
being offered, three more P’s may be added to the 4P’s:
• People: they are the individuals involved in the service delivery
(how they are trained, how they behave in the service delivery, etc..)
• Processes: consist of the activities that the individuals perform to
provide the service delivery
• Physical evidence: it is an element of the marketing mix which
customers can actually experience or visualize when they use a
service, and which contributes to the perceived quality of this
service. It is the place where the service is delivered (airplane,
doctor’s clinic, etc)
Our business plan consists of:
• Product: wireless broadband and differentiated content
• Establish a process where the service subscription may be
completed in five minutes
25. 10. REFERENCES
ALLEN, S. M. “Business Case Assessments of a Wireless Broadband
Network Deployment”.
CECCONELLO, Antônio Renato; AJZENTAL, Alberto. A construção do
plano de negócios – São Paulo: Ed. Saraiva, 1ª edição, 2008
CHIAVENATO, Idalberto. Empreendedorismo – Dando asas ao espírito
empreendedor–São Paulo: Ed. Saraiva, 1ª. Ed. 2005
HAMEL, Gary; PRAHALAD, C.K. Competindo pelo futuro. Riode Janeiro:
Campus , 1995.
Instituto Brasileiro de Geografia e Estatística – IBGE. Disponível em
www.ibge.gov.br
KOTLER, Philip; ARMSTRONG, Gary. Princípios de marketing. 5. ed. Rio
de Janeiro Prentice-Hall do Brasil Ltda., 1993.
KOTLER, Philip. Administração de marketing: análise, planejamento,
implementação e controle. 5. ed. São Paulo: Atlas, 1998.
KOTLER, Philip. Marketing para o século XXI: como criar, conquistar e
dominar mercados. 1. ed. São Paulo: Ediouro, 2009.
OLIVEIRA, Djalma de Pinho Rebouças de, Planejamento estratégico:
conceitos, metodologia e práticas – 24 ed. – São Paulo: Atlas, 2007.
PORTER, Michael. Competitive advantage: creating and sustaining
competitive performance. New York: The Free Press, 1985.
Revista Exame: www.exame.com.br edições de 15/07/2009, 08/04/2009.
Revista Teletime: www.teletime.com.br edições de Julho/2009, Agosto/2009.
RIEDEL, A.; FISCHER, T.; HOGREFE D. "OPTIMISING WIMAX BUSINESS
MODELS USING INCENTIVE ENGINEERING”.
Teleco: www.teleco.com.br