Telecommunication Industry Analysis

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Overall Situation Analysis – Current Marketing Situation

The domestic telecommunication industry offers a broad range of services through four primary product segments: radio, television, voice communications, and broadband services, the two largest being voice communications and broadband services (Industry). These services are offered to businesses and personal consumers, and are the industry’s primary user segments. Companies in the telecommunication industry are the primary means by which communication is provided, whether it is by telephone, Internet, or television. Using transmissions of signals over networks of radio towers, data is transferred to customers using devices, such as a phone (Telecommunications). Determining which segment to market to and who drives the market is integral for companies in the telecommunication industry to understand.

User Segments
The telecommunication industry markets to two segments: business and personal consumers. The business segment utilizes the services of the telecom industry for better communication, higher efficiency, and better distribution of data (Telecommunications and Business). As businesses require communication devices for email, phone, teleconferencing, and data transferring, companies are marketing to businesses offering the most advanced and efficient products. Businesses also allow for a larger budget for spending, and consequently telecommunication companies are refining their product to fit their needs on a larger scale. AT&T and Verizon Communications are the leading providers in the business segment, offering services such as videoconferencing, networking, Internet, and voice communications.

Personal consumers are the other segment the telecommunication industry markets to. With over 290 million subscribers in the United States (U.S.), companies in the telecommunication industry are on a very competitive playing field. AT&T and Verizion, again the leading providers in the personal consumer segment, spend a large amount each year on advertising trying to reach their markets (The Account). Consumers want products with the most speed and reliability, which forces companies to update constantly. With new products and features coming out regularly, it is imperative these companies stay current with the latest technology.

Product Segments
The two product segments that define the telecommunication industry are voice communications and broadband services. Voice communications entail phone services such as phone calls and voice messaging. Businesses and personal users rely heavily on this service, as people are requiring reliable and efficient phone service in their everyday lives. Features play an integral role in defining the product, so companies must have feedback from consumers to know how to improve their product (Cell Phone).

Broadband services offer Internet access to its users. This technology is improving constantly, becoming faster and more efficient. Integrating into phones, television, and DSL, broadband services are becoming increasingly important to having a reliable product and reaching customers (Industry). Over the past decade, Internet subscribers have doubled, reaching over 266 million customers (World), which shows the prevalence of broadband services in the United States. As many of the telecommunication companies have merged in recent years, they are able to offer a larger product as well as “bundled media packages”, which brings in new revenue sources and opportunities for growth (Industry).

In the telecommunication industry, the consumer is driving the market. As technology is advancing and more features are becoming available, companies must customize their products to fit the consumers’ needs. Many consumers require different features and options, which require the companies to stay current with recent trends. Customer service has also played a large role in the satisfaction of customers, and the companies take a lot of...
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