Case Study: A Call for Progress
"A Call for Progress" describes the need and importance of telecommunication in today's world. It helps many people in exploring different opportunities. Unfortunately, this industry is in the hands of state-run monopolies who are inefficient in this sector with a staff which is poorly motivated. However, the introduction of cell phone has enabled the consumers to avoid the bane of landline service.
As there has been an increase in the means to communicate, the economic growth has boosted due to a number of reasons such as lowering prices, reducing waste etc. The case provides a couple of examples of the Indian farmers and fisherman about how cell phone has changed their way of pricing and products.
Cell phone manufacturers are also looking up opportunities for more production and how to gain more consumers using different techniques and cheaper offers. The goal of the industry is to cell more of their units. In the western countries, it is not an attractive market since there are already more cell phone accounts than there are people. There is a difference in the markets if USA and China are compared where only 1.2 million new accounts are created in the USA in contrast to 6.8 million per month in China.
Some companies such as Millicom adapted their marketing and pricing strategies according to where they were present. In African and Latin American countries, they had to use low pricing strategies so that they could encourage more people to buy their offers. The pricing was set according to the seconds called by the customers and not by the minute. Also, some balance or minutes could be transferred amongst relatives and friends.
There has been an emergence in the innovation sector because there is a need for cutting cost. The towers alone costs alot to a company. In India, towers need AC and backup generators due to power outages. Some companies are trying to make their equipments much smaller to control their costs. Even though, young generation in those areas demands the new, hi-tech phones.
Identify the roles of product policy, pricing, promotion, and distribution in the cell market in developed countries.
The roles of product, pricing, promotion and distribution play a vital role in the marketing of a product. In this case, there is the actual product, i.e. the cell phones, and the service, i.e. the cell phone service providers.
First, analyzing the product policy, cell phones need to be much more than an apparel used for communication. The markets in the developed countries demand hi-tech phones with which they can do more than just communication. Most of the new phones have internet access which means that the product needs to have bigger screens, touch options, better memory so that the consumers can use the phone with convenience and at a faster speed. Therefore, the phone companies need to produce products which are demanded by the consumers having their specified characteristics. If we take into account the service providers, the services in the developed markets such as USA or Western countries require the speed and the quality of the service. The service providers must take into account the ease of use, the clientele service and the general quality of their services. In developed countries, they should take into consideration whether the service they offer be customized or standardized. As because the customers in the developed countries have the budget to meet their own requirements, the customization of the service or the product should be their primary target.
Price is one of the most vital components of the marketing mix. The Cell phones in this case has very low price and is trying very hard to reduce their costs in order to bring more customers and cover as less costs as possible. The phone industry has cut costs so much because there are so many options the customers can choose from and it is also made available for them. In...
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