Cellc South Africa - Marketing

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Question One:

Cell C segmented its market profile according to the different needs and preferences and appropriate market offerings. Introduction
Definition of Target Marketing and its Importance in telecommunications This focuses on selling a product or service to a current market. However a strategic market embraces the potential market for the product or service. (Kotler and Keller; 2009: 86). An organization that markets directly to their end users to sell their products and services are benefitting from the concept “direct marketing”. Therefore there is an interactive communication with the end user, thus the most effective direct marketing takes place when there is a clear connection to reach its target market. (Berry and Wilson; 2000:157). According to IHS Global Insight, Target marketing and planning would ensure the maximization on returns as well as the investment in marketing. In this way the organizations efforts are directed on the “most promising markets”, thereby targeting the messages to those businesses or households that are likely to respond. To facilitate this task, Telecommunication consultants are assigned to conduct a detailed Market segmentation analyses.

To maximize the return on your sales and marketing investments, you must focus your efforts on the most promising market segments and target your messages to the businesses or households most likely to respond. To help accomplish this, our Telecommunications consultants conduct a detailed market segmentation study focusing on trends in key market segments, analyzing forces of change, and identifying risk and success factors. Researchers have indicated that target marketing is the better use of the most valuable resources, i.e. time and money utilized to generate additional revenue. (Tim and Wilson; 2000:75). Therefore the goal is to get maximum information regarding both existing and prospective clientele. According to Witepski,( Cell C’s corporate report; 2008), stated that due to Cell C’s decision to redefine and restructure its market in 2008, this lead to an improved infrastructure and positioning that ultimately yielded good results.

On the other hand according to Hingston, market segmentation is that term that describes the discipline of considering the total possible market, in to much smaller segments or parts. There are different levels of market segmentation.

Powerful marketing was part of the Cell C’s success; this tool was indeed accompanied by process of delivering products and services that catered for the needs of its identified markets. Therefore in pursuit of simplicity as well as reassurance for the customer, Cell C has used a blend of above-the-line and below-the-line marketing. The key to developing these products and services, is market segmentation, says Dos Santos, MD of Autopage Cellular.( http://secure.financial mail.co.za/report/cellc03/bcellc.htm). He further describes it as going back to the basics, that is selling that which the market wants, followed by customer retention.

Figure 1: Source Adapted Prentice Hall, 2000

According to the online article Market segmentation means good business, this process in indeed a very precise one. Involving looking as well as analyzing particular markets consumers is found to be within. After which they are divided in to segments, according to variables. This segmentation marketing method has proven to increase profits, as well as how the business plans to formulate an appropriate retention strategy for its customer base. This ensures that maximum time an effort is focussed on a specifically profitable segment group, as it deems it necessary.

ANALYSING CELL C’S ADOPTION OF MARKET SEGMENTATION TO REACH ITS TARGET AUDIENCE.

Cell C has research their market in order to know how many potential customers they have, what their needs are and how to reach them. After which dividing them into segments based on common characteristics.

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