AT&T Marketing Plan



AT&T Marketing PlanKim Pearson & Ashley Webb12/11/2011Table of ContentsExecutive Summary2Situational Analysis3Market Summary3SWOT Analysis8Competition10Service Offering12Keys to Success15Critical Issues15Marketing Strategy16Mission17Marketing Objectives17Financial Objectives17Target Markets18Positioning21Strategies22Marketing Mix23Marketing Research28Controls30Implementation30Marketing Organization31Contingency Planning31Conclusion32Bibliography 34Executive SummaryAT&T is known asking “The Bentley” in the telecommunications industry. It has always provided high quality products with outstanding service. Our customer base has some diminished in past months due to the heavily saturated market of other carriers. Our mission is to win back those long time loyal customers while gaining new customers with new and innovative quality products and outstanding customer service. The Triple Play Bundle: U-verse TV, Home Phone Service/Wireless, and Internet Services will inclusively provide all services without having the inconvenience of multiple providers for different services. AT&T intent is to target the 10 major metropolitan markets: whose income ranges between $40,000- $50,000; men, women ages of 30-55 with children that may currently have these services with another provider or have a necessity for the bundle.AT&T is currently in competition with seven large companies. The strongest competitor for cable/satellite is Comcast, for the home phone services is Vonage, and the top two competitors in the wireless industry is Sprint and Verizon; whose customers may be willing to switch providers for the convenience of having three quality services combined on one billing statement. The main objective is to price the bundle at an affordable rate enabling customers to switch carriers. This will build and strengthen our customer base and win back our former customers while gaining new customers. The channel of distribution AT&T will utilize will be at a zero-level and eliminate the middle man which will make it more affordable for the customer which will result in increasing our Bottom Line. AT&T promotion strategy will consists of various vehicles of advertising to pull in the targeted the customer. Television, radio, newspaper, and Social Media will create awareness in the different marketplaces in the 10 major markets nationwide.The budget allotted for this massive campaign will be costly to circulate and be effective in advertising and marketing in these major markets, and will budget costs annually. Situational AnalysisThe product offered is the AT&T bundle service that includes Internet, TV, and Voice. AT&T’s advantages are that it’s the largest provider of broadband, AT&T’s wireless service has an exclusive relationship with the Apple iPhone, it has a broad portfolio of products; they have great opportunities for growth whether it’s market expansion, acquisitions, and further growth with 4G technology.This product will fulfill the customers need for entertainment and information. This particular bundle will provide customers with more overall value. The product features a wider variety of TV channels, superior internet speeds, and premium quality phone service at a very competitive rate.Market Summary-TelecommunicationsNo other industry touches as many technology-related business sectors as telecommunications, which, by definition, encompasses not only the traditional areas of local and long-distance telephone service, but also advanced technology-based services including wireless communications, the Internet, fiber-optics and satellites. Telecom is also deeply intertwined with entertainment of all types, including cable TV systems, since cable companies are now aggressively offering local exchange service and high-speed Internet access. The relationship between the telecom and cable sectors has become even more complex as telcos are now selling TV via IP (Internet protocol) services, competing directly against cable for consumers’ entertainment dollars.Consequently, the various organizations that monitor the global telecommunications industry have their own ways of estimating total revenues, and their own thoughts on including, or not including, specific business sectors. Does “telecom” include equipment sales and consulting? Or, should it be considered to be services only, such as subscriber lines and datanets?Information and Communication Technologies (ICT) is a term that is used to help describe the relationship between the myriad types of goods, services and networks that make up the global information and telecommunications system. Sectors involved in ICT include landlines, data networks, the Internet, wireless communications, (including cellular and remote wireless sensors) and satellites.Globally, in the broadest possible sense, the telecommunications industry will be about a $4.25 trillion sector in 2011. (This figure includes equipment and related services, as well as subscriber revenues and other business revenues.) The widely recognized TIA (Telecommunications Industry Association) estimated global telecom revenues at $3.1 trillion for 2010, including $985 in U.S. revenues.There were approximately 5.3 billion wireless service subscriptions worldwide as of March, 2011, according to LM Ericsson. This is immense growth from about 4 billion at the end of 2008 and 1.41 billion in 2003. However, the actual number of individuals holding those subscriptions is somewhat less, at approximately 4.2 billion, as many people have more than one subscription.The base of global wireless subscribers will continue to grow rapidly, as low-cost providers are making service prices low enough to be affordable for vast numbers of people in emerging nations. Inexpensive cellphones are now indispensable to consumers from Haiti to Africa to New Guinea.Telecommunications remains one of the major providers of employment in the world, with 899,700 employees in the U.S. alone.The ITU estimates global landlines at 1.18 billion at the end of 2010, down from 1.21 in 2009, and 1.27 at the end of 2008. This is only 17.2 landlines per 100 global population, compared to about 80 per 100 population for wireless subscriptions. For the U.S., the FCC states there were 113.5 million households with wired landlines at the end of 2010, down slightly from the previous year.Several major factors are creating changes in the telecommunications sector today, including: a) a shift in business and commercial telephones to VOIP (Voice Over Internet Protocol) services, that is, telephone via the Internet; b) a shift in residential and personal telephone use from wired services to wireless; c) intense competition between cable and wired services providers; d) steady increases in Internet usage for communications of all types; and e) the continuing evolution of advanced wireless technologies, including more smartphones, wider availability of 3G services and 4G services that will slowly but surely roll out.Ingenuity, innovation, cost control and a reasonable approach to spending and investment will help to move the industry ahead. New cellular, cable, satellite, VOIP and wireless technologies promise continuous rapid change in this sector and pose a massive threat to traditional landlines. The cost of a cellphone call has become a bargain worldwide. Meanwhile, competition among handset makers is more intense than ever. On the higher end, cellphone manufacturers are adding advanced new features to smartphones on a regular basis. These phones now contain significant computing power and memory. On the low end, handset makers are introducing good quality units for as little as $15 to $20 for high volume sales in emerging markets such as Africa.Improved cellphone service has prompted tens of millions of consumers to cancel their landlines altogether, eating into traditional revenue streams at AT&T and Verizon, among others. Meanwhile, wireless access to the Internet threatens traditional DSL broadband suppliers.As more consumers recognize the promise, and good value, of phone service using VOIP, millions of households and businesses worldwide have signed up for less-expensive VOIP service as an alternative to landlines, often through their cable providers as part of a bundle of services. Several heavy hitters, such as Comcast, have jumped on the VOIP bandwagon, along with startups like Skype (acquired by Microsoft in 2011) and Vonage.At the same time, local phone companies, led by Verizon and AT&T, are laying fiber-optic cable directly to the neighborhood and even into the home and office in order to retain customers with promises of ultra-high-speed Internet connections and enhanced entertainment offerings online. This is the big telcos’ way of fighting back. If cellphone owners are dropping their landlines, while VOIP over cable takes even more landline customers away, then the best weapon that traditional telcos can use in their battle for market share is the Internet. AT&T and its peers are focusing on bundled service packages (combining wireless accounts, very high-speed Internet access and entertainment such as video on demand and TV via IP , in addition to VOIP or landlines). Next, service providers are offering innovative new value-added services that are accessed online. For example, consumers might respond well to bundled services that monitor home security or adjust home energy usage, or services that monitor the movements and needs of elderly family members at home. The right value-added services, controlled via cellphones, remote wireless sensors and/or the Internet, could get consumers hooked, with the potential to build new revenues and stop customer turnover.Mergers, acquisitions and other industry changes redefined telecom. AT&T and SBC merged (changing the name of the merged company to AT&T, Inc.), and MCI merged into Verizon. Sprint and Nextel have combined to create wireless giant Sprint Nextel. Qwest has merged into CenturyLink (formerly CenturyTel). The competitive landscape is shifting dramatically due to these mergers.In addition, government regulations are evolving quickly, which will bring even bigger changes to business strategies. Overall, the telecommunications industry is in a state of continuous technological and economic flux driven by intense competition and new technologies.In March 2010, FCC chairman Julius Genachowski published a proposal, the National Broadband Plan. He not only proposes to solve the problems of rural Internet access, he also has a plan called “100 Squared.” His thought is to increase Internet services in America so that 100 million homes would enjoy 100 megabit download speed and 50 megabit upload speed by 2020 (compared to an average of about 3 or 4 megabits of broadband download speed, and relatively slow upload speed, as of 2009). (Plunket)Home Phone, TV and Internet ProvidersThis industry comprises operators primarily engaged as third-party distribution systems for broadcast programming. The operators deliver visual, aural, or textual programming received from cable networks, local television stations, or radio networks to consumers via cable or direct-to-home satellite systems on a subscription or fee basis. This industry does not include cable network program producers, which are the primary players in the Cable Networks industry. Primary Activities?Providing third-party distribution systems for public broadcast programming?Delivery of outsourced programming to consumers via direct-to-home systems on a subscription or fee basis?Distribution of video services by optical fiber cable, satellite or other mediumMajor products and services in this industry?Basic programming packages?Premium cable programming packages?Other services?Internet access services?Pay-per-view services?Advertising?Other program distribution related services?Program distribution equipment sales and rentalsSWOT AnalysisStrengths?Largest provider of broadband in U.S.?World’s largest communications holding company by revenue.?Broad portfolio of complementary products and services (wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, telecommunications equipment, managed networking, wholesale services, and directory advertising and publishing).?Extremely capable network capacity, both physical (fiber optics) and wireless (including a growing 3G network).?AT&T Wireless exclusivity with Apple‘s iPhone.Weaknesses?Lack of Geographical concentration?Increasingly more price-competitive market in both retail and wholesale markets.?Company obligations and liabilities from old business unit spin-offsOpportunities?Further industry consolidation (acquisitions).?Wireless growth, particularly through its partnership with Apple/iPhone.?Emerging markets/global expansion.?Further industry growth with 4G technology?Expanding of U-Verse fiber network?Investments in global networks for business servicesThreats?Increasingly ferocious competition in the wireless arena.?Emerging technologies — falling behind smaller, more nimble companies and operators.?Price competition within industry pressuring margins.?Weather damage to antennas and transmission lines.?Reliance on iPhone gives Apple an upper hand in brand visibility?Saturation in the wireless market?Government regulationCompetitionAT&T’s direct competitors are Comcast Xfinitiy, Dish network, and Direct TV because they all offer the bundled home television, phone and internet s services. They are also the other top star players within the telecommunications industry in the US.Internal competition for industry services relates to the price of the various levels of programming (basic versus premium), the quality of the video and audio service, including now digital services and alternate service delivery mode, cable versus satellite or by other means. Also important is the variety and quality of programming, the availability of bundled services - including internet, video-on-demand and telephony, introduction of new services such as video-on-demand and personal video recorders and the number of channel.The level of internal industry competition is particularly high and increasing, especially between the cable and satellite distribution segments, although, now there is a high degree of overlap in ownership of both systems by major operators.External competition applies from other areas of leisure and entertainment expenditure by households, including from internet and web-based products, as alternatives to TV watching and now include movie downloads and watching on computers to podcasts. (IBISWorld)Comcast Types of Products and Services?Cable Television?VoIP Service?Cable Network Programming?High-Speed Internet Service?Video-on-Demand?Advertising Services?Interactive Program Schedules?Wireless ServicesBrand Division and Affiliates.?NBC Universal LLC?Philadelphia Flyers?Philadelphia 76ers?Fandango Inc?Global Spectrum LP?Golf Channel (The)?Comcast Interactive Media?Xfinity TVSales in Thousands?2010 Sales: $37,937,000 ?2009 Sales: $35,756,000?2008 Sales: $34,256,000(Comcast Profile) EchoStar Corp-DishNetworkTypes of Products and Services?Digital Set-Top Boxes & Related Products?Fixed Satellite ServicesBrand Division and Affiliates?DISH Network Corp.?EchoStar Satellite Services LLC?Sling Media Inc?Hughes Communications, Inc.?EchoStar International CorporationSales in Thousands?2010 Sales: $2,350,369 ?2009 Sales: $1,903,559?2008 Sales: $2,150,520DirectTV Types of Products and Services?Satellite Broadcasting?Commercial Satellite Fleet?Satellite-Based Internet Services?Digital TelevisionBrand Division and Affiliates?Liberty Entertainment, Inc.?DIRECTV U.S.?DIRECTV Latin America?DIRECTV Sports Networks LLC?PanAmericana?Sky Brasil Servicos Ltda.?Innova, S. de R.L. de C.V. ?FSN NorthwestSales in Thousands?2010 Sales: $24,102,000 ?2009 Sales: $21,565,000?2008 Sales: $19,693,000Product (Service) Offering “AT&T offers products and services for consumer, small business, enterprise, wholesale, and local search. Table 1 provides details for AT&T's consumer portfolio.Product/ServiceDescriptionCompetitorsWirelessAT&T Mobility offers a wide variety of wireless voice and data services over one of the nation's largest digital voice and data networks. AT&T also offers GoPhone prepaid wireless services, including an all-inclusive talk, text, and Web service, priced at $50 per month. The company also markets a wide range of voice and data devices that can connect to its Mobile Broadband Network.SprintT-MobileVerizon WirelessDigital TVAT&T's video solutions, including the following:AT&T U-verse TV AT&T | DIRECTVComcastCox CommunicationsDIRECTVDish NetworkQwest (CenturyLink)SprintTime Warner CableVerizon CommunicationsInternetAT&T is the US' largest broadband provider, offering security, privacy, and virus protection in addition to access. Access options include:AT&T Dial-Up AT&T U-verse Internet & Data Plans AT&T DSL Satellite High Speed Internet Powered by WildBlue AT&T Wi-Fi LaptopConnect Home NetworkingComcastCox CommunicationsQwest (CenturyLink)SprintTime Warner CableT-Mobile ClearVerizon CommunicationsBundlesAT&T offers flexible combinations of home phone, broadband, TV, and wireless services, depending on availability. Particularly popular are the AT&T U-verse castQwest (CenturyLink)SprintT-MobileTime Warner CableVerizon CommunicationsHome PhoneAT&T provides home phone services, primarily in the local service areas of the various local service operating companies acquired by SBC Communications. These include:Local phone service Nationwide long distance service AT&T U-verse Voice over IP (VoIP) AT&T HomeManager ComcastQwest (CenturyLink)SprintVerizon CommunicationsIn-Home Support ServicesAT&T ConnecTech provides a full suite of in-home services for virtually all technical support needs from installation to maintenance and repair for residential customers castCox CommunicationsQwest (CenturyLink)SprintTime Warner CableVerizon Communications AT&T's network spans the globe and reaches every major country and metropolitan area through its subsidiaries and affiliates, including all of the Fortune 1000, with one of the world's fastest, most advanced IP backbone networks, complemented by the largest integrated GSM network in the US. The company made capital investments totaling $20.3 billion in 2010 to continue building out its wired and wireless networks and expects to invest another $19 billion in network upgrades in 2011. ()The need of our product is to replace it with a more economical cable/internet/phone service than remain with a higher priced service from another vendor. We can still provide the customer with high quality customer care before, during, and after the transition.AT&T will conduct a campaign to win back previous customers who have recently left the company for another carrier or vendor, or loyal customers who may have had services for years but decided to switch due to price increase. There are still customers who can be persuaded back with a simple rate reduction. The features and benefits of the AT&T products would be to offer a lower rate along with premium channel incentives, and easy accessible DVR recording and viewing. Keys to Success In order for AT&T Home Services to be successful, we must provide a targeted level of customer care service. Customer satisfaction is very important for positive word of mouth and direct advertisements. AT&T must continue to offer high quality products to match and outsell the competition. We also must continue to seek out former loyal customers, and attract new ones. Critical Issues The AT&T network includes extensive wireless and wired access capabilities, as well as one of the world's most advanced and powerful IP backbones.The AT&T global backbone network carries 23.7 petabytes of data traffic on an average business day.Our backbone network carries a full range of IP-based services, including wireless data, business video, data and voice services, private line and wavelength traffic, as well as IP-based residential services and Internet access for AT&T's more than 17.8 million total broadband customers.Our network also incorporates Multiprotocol Label Switching (MPLS), which supports a full range of applications over a single IP network infrastructure with the highest levels of service quality.” (AT&T)We will continue to utilize the warehouses to store our tangible equipment such as cable/HD cable boxes, DVR machines and, wireless phones. Retailers and distributors will also have an opportunity to sell and offer our excellent products, as well as having the same accessibility to the equipment to install the services for all customers. The internet will definitely have the advantage over all other available sources to acquire our services.Marketing StrategyOur long term goal is to develop extensive awareness to potential new clients to increase our customer base. The necessity to increase the company’s public relations activities is essential which will enable more advertising of the products via website, print, and television commercials. Making them more visible and attract new customers; incorporating attractive ads in our retail stores that are designed to draw in new customers. We would also like to maintain our current customer base with offering special promotions, and incentives that would encourage mouth-to-mouth referralsMissionOur mission is to keep you connected with the latest technical innovations which will benefit every aspect of your world. Marketing ObjectivesIncrease product awareness among the target audience by 50 percent in one year. Inform target audience about the updated features and the new benefits of AT&T products and our competitive advantage, leading to a 25 percent increase in sales in one year. The awareness of our products will be measured from the responses of our marketing campaigns and surveys.Financial ObjectivesAT&T reported a 60% drop in profits for the fourth quarter of 2010, primarily the result of a previously-disclosed change in its accounting practices. AT&T posted a fourth-quarter profit of $1.09 billion, or 18 cents a share, down from $2.73 billion, or 46 cents per share, a year earlier. Excluding such items as the accounting charge and severance costs, earnings rose to 55 cents. Revenue for the quarter was up 2.1%, to $31.36 billion. AT&T's wireless revenue overall rose 9.9% to $15.18 billion, as the postpaid average revenue per user rose 2.2% to $62.88. AT&T saw a 27.4 percent growth in wireless data revenues, up $1.1 billion versus the year-earlier quarter the churn rate for the postpaid customer base was 1.15%, while the combined rate fell to 1.32% from 1.42% a year ago. Wire line revenue fell 3.2% to $15.11 billion. The company's U-Verse offering now has 246,000 TV subscribers; the carrier also said it has 210,000 net new high-speed Internet customers. (Drumheller, Russ)The goal of this marketing plan is to stimulate growth to ultimately increase the customer base by 20%-25% while retaining the current customer base and to increase market share by 1% by 2014.We believe we can support such growth due growing number of products and services. The previous year’s sales also provide evidence. While the economy remains unstable AT&T saw a slight increase in sales from 2008-2010. 2010 Sales: $124,280,000 2009 Sales: $123,018,0002008 Sales: $124,028,0002007 Sales: $118,928,0002006 Sales: $63,055,000 2010 Profits: $19,864,000 2009 Profits: $12,535,0002008 Profits: $12,867,0002007 Profits: $11,951,0002006 Profits: $7,356,000 (Plunket, J. W)If the market share is increased by 1%, AT&T would have a 27% market share. (Green, Jeff. Telecom in the US Nov 18,2011)Target MarketsThe basic needs that the AT&T cable, internet and phone bundle satisfy are entertainment, and communication. Almost all people in the United States turn to the TV and internet as their main source for entertainment and knowledge. The bundle service offers accessibility to TV, Internet and Phone at a very competitive value and price.AT&T’s points of parity with the competition are that it can show basic channels with the option of movie channels; customer service is available; and it has good reception. The features that differentiate AT&T bundle service is it’s a wider variety of channels at very competitive prices and superior customer service. With 26% market share, AT&T is an obvious star player in the telecommunication industry. The most fitting growth strategy would be to continue to penetrate the market by enhancing current products into a saturated yet growing market. (Green, Jeff. Telecom in the US Nov 18, 2011)To make the first customer interaction a positive experience, new customers will be offered a discounted package for the first six months of a two year contract. To retain customers, AT&T will offer rewards for customer referrals though a customer referral program. In addition to the referral program we will offer customers the option to go paperless which means all transaction and bill statements will be online. In return customer will be credited a discount on their monthly bill.The current consumer purchasing process will be upheld. Customers can order bundling services online, in a brick and mortar store or over the phone.Our general strategy for reaching the set target market is to use various forms of mass media and by a customer referral program. To grow the customer base AT&T will reward existing customers for referring new customers to bundled services. If a customer is established based off a referral the existing customer will be rewarded one of the following: 10% off one month’s bill, no taxes on one month’s bill or a $50 gas card. These rewards would give the existing customers a chance to increase the value of the U-Verse bundling service. In general our target market can be considered very broad:?Men & Women?Ages 30-55?With children or without children?Urban and Suburban-People living either within or outside the top ten MSA’s?Income between $40,000- $90,000Our marketing strategy will be used for the top ten MSA’s of the United States.1.New York2.Los Angeles3.Chicago4.Dallas5.Philadelphia6.Houston7.Washington D.C.8.Miami9.Atlanta10.Boston According to the online segmenting source My Best Segments the description of the target market fits into the following groups:?Second City Elites?Upward Bound?Bohemian Mix?Kids & Cul de Sacs?Home Sweet Home?Fast Track Families?American Dreams?White Picket Fence?Blue Chip Blues?Close in Couples?Sunset City Blues Even though these are separate groups they all have a few points in common that make them our idea target market. These groups have families of two or more, they live in the top Ten MSAs and they have a disposable income to support the cost of AT&T’s services. For instance, the group titled Kids & Cul de Sac may be our most ideal group and they can be described as:Upper-Mid Younger w/ Kids Upper-middle class, suburban, married couples with children--that's the skinny on Kids & Cul-de-Sacs, an enviable lifestyle of large families in recently built subdivisions. With a high rate of Hispanic and Asian Americans, this segment is a refuge for college-educated, white-collar professionals with administrative jobs and upper-middle-class incomes. Their nexus of education, affluence, and children translates into large outlays for child-centered products and services. 2010 Statistics: US Households: 1,876,131 (1.62%) Median HH Income: $76,379 Lifestyle Traits Shop at Disney StoreBuy educational toysRead ParentingWatch the Disney ChannelVolkswagen Routan PositioningAT&T is a very well respected company and it has a very positive position the telecommunication industry. AT&T is the largest communications holdings company by revenue; it has a very broad portfolio of products and services; it has tremendous opportunities for growth and expansion whether it’s through acquisitions or entering into emerging markets. AT&T’s partnership with Apple and the IPhone has also provided a strong footing within the telecommunications industry. For the most part AT&T’s broad list of products and services do meet the consumers’ needs but we think the need for competitive value at very competitive prices could be improved or updated. To meet this need for value and we will use sales promotions. (Drumheller, Russ)StrategiesThe objectives of the proposed growth strategy are to capture new customers and to retain current customers. We will use the following strategies to reach our target market:?Customer Referral ProgramReward: 10% off one month’s billReward: No taxes added to one month’s bill$50 gas card?Mass Communications?Top ten MSAs in the United States?Outdoor?Commercial Advertising?Online?RadioRecent trends in advertising have made it popular and effective to advertise online. AT&T will reach out to websites in search of advertising opportunities. Advertising on TV during primetime hours is also another strategy that can be used to reach our broad target market. The industry is full of competition and is very saturated. To set the marketing strategies apart from the competition we will consider every opportunity of interaction with the consumer and take those opportunities to make the consumer aware of AT&T services. Marketing MixAT&T is “The Bentley” in the telecommunication industry. AT&T is well known for its high standard in offering the best quality in products and services across the globe. In order to maintain that status, we do not want to take for granted that customers would be knocking our doors down to get our products and services; we want to show them that we appreciate their business. Creating a marketing mix that will reach our target audience will consist of the following strategies will be beneficial for the customers as well as the company.To increase our customer base, we will need to increase their knowledge of our excellent products and services; the features and attributes of our Triple Play – TV + Internet + Voice or Wireless.U-verse customers enjoy a crystal-clear 100% digital picture along with digital video recording (DVR), Video on Demand, High Definition, and choice programming with a wide variety of Premium and International channels. AT&T U-verse entertainment bundle service, you will receive a cutting-edge Total Home DVR (available in most programming packages) that records up to four programs at the same time. DVRs can be accessed remotely from a computer or wireless phone (with required technology). With U-verse DVR, customers have the power to pause, replay, and record live U-verse TV. ATT U-verse TV allows users to determine their own instant replays, pause an Internet TV show while refilling their popcorn, or go out to dinner with family while their favorite movie is being recorded. Check U-verse availability in your area by clicking on the button below.AT&T U-verse High Speed Internet is leading the industry by providing security, protection, and a variety of high speeds to meet each customer’s unique needs. In addition, built-in wireless home networking is included with AT&T U-verse Internet at no additional cost. Customers can get the information they want, when they want it, while enjoying the following options:?Pro, Elite, Max, Max Plus, Max Turbo Plans offering speeds 3 - 24 Mbps.?Music videos and customized commercial-free radio stations.?A variety of online games that can be played with family, friends, or alone.?New sights and sounds with special programming from web premieres to behind-the-scenes footage of popular movies and TV shows.?Access to thousands of Wi-Fi Hot Spots! AT&T Wi-Fi Basic service is included if you subscribe to AT&T High Speed Internet, AT&T U-verse Internet, or AT&T Fast Access? DSL—all speed plans included. This includes locations like Starbucks, Barnes & Noble, Airports, McDonald's, and additional AT&T Wi-Fi Locations.AT&T U-verse Voice comes packed with advanced calling features like:?Busy Call Forwarding?Call Forwarding?Call History?Call Screening?Call Transfer?Caller ID Blocking?Click to Call?Directory Assistance Blocking?Do Not Disturb?International Call Blocking?Locate Me?Make a Call?No Answer Call Forwarding?Safe Call Forwarding This truly advanced phone system is offered through two packages: AT&T U-verse Voice Unlimited and AT&T U-verse Voice 250, with options to add additional lines, and more (optional) features like Call Trace, no public listing, and more. Besides the low priced long distance phone service, with AT&T U-verse Voice you have an access to competitive international calling rates. Convenient, web-based call management lets you easily control your calling features and account online, plus AT&T U-verse Messaging lets you combine your Wireless from AT&T voice mail into your ATT U-verse voice mail, so you have just one place to check all your messages from home, remotely, or even from your personal computer. AT&T U-verse VOIP Network working without voice compression is what makes the difference between AT&T U-verse Voice and any other VoIP phone service provider, because voice compression techniques can distort home alarm systems. AT&T's U-verse network can support the bandwidth required to provide high quality Voice, TV and Internet service simultaneously and therefore does not use voice compression. (AT&T Services) AT&T wireless service will be an added feature to the bundled package. We offer a variety of mobile phones to accommodate your wireless needs such as our high quality Refurbish Phones, GoPhones, the IPhone, the Android, and a nice selection of SmartPhones. AT&T wireless will provide the best global coverage, unlimited mobile to mobile and also rollover minutes. (specialoffers/service)All AT&T products such as home phones, wireless phones, u-verse cable boxes, and internet connection boxes will carry the AT&T logo and name. AT&T will also provide a warranty and will replace any hardware that may have been an inconvenience to the customer for no additional charge.The Public Relations department has allowed for the budget to accommodate and will facilitate a national campaign in the 10 major markets to win back previous customers who have left for another carrier. Marketing MatrixMarketing Campaign to useWhen to useTime span of campaignResults/MeasurementsTelevision30sec runs during popular high rating shows featured during Primetime hours6 monthsAwareness to the PublicRadioDuring segments 6am to 10am; 7pm to midnight2 -10sec consecutive intervals for 6 monthsAwareness to the PublicInternet/OnlineSocial Media/Yahoo, Hotmail6 monthsAwareness to the PublicNewspaperFull Page Ad to run on Sunday, and Thursday Edition6 monthsAwareness to the PublicOutdoor Media/BillboardsOn Public Transportation6 monthsAwareness to the PublicPromotionTo target AT&T’s Triple Play customer market, we will use several methods of advertising to win back and pull previous customers who have had prior service within the past 12 months. The various ways of advertising will be sales promotion, public relations, and direct marketing. AT&T will combine the traditional media vehicles such as television, radio, and newspaper, also internet/online utilizing Facebook, and Twitter; outdoor media campaigns which will entail billboards on public transportation to run for 6 months for each promotion for the next two years to increase 50% of our sales. Also AT&T will initialize a referral program (word of mouth) which will offer incentives and rewards for any customer who is willing to share their pleasant experience they encountered with AT&T, with a family member or someone from their circle of friends who are not currently AT&T customers. Promotion BudgetAT&T is very well known is the telecommunications industry; in order to maintain this status it is necessary to be mindful of the costs of promoting these products in the different marketing sectors: Television, Radio, Newspaper and, Internet/Online – Facebook, and worksPrimetime ShowsCostAir TimeCBSThe Good Wife, NCIS, CSI$2,000-5,00018x DailyNBCCelebrity Apprentice, 30 Rock, The Voice $2,000-5,00018x DailyABCDancing with the Stars, Body of Proof, Last Man Standing$2,000-5,00018x DailyFOXX Factor, Terra Nova, Bones$2,000-5,00018x Daily(Air Time Academy) Radio (rates)Basic Radio SpotProfessional VoiceoverMusic BedMP3 deliveryReview the script: 10 second - $100: 60 second - $200(Radio Commercials) Internet$0.75 pay-per-click Internet SourceCostHow OftenFacebook$0DailyTwitter$0HourlyReferrals (Word of Mouth)Zero CostChannels of DistributionAT&T would primarily utilize the “zero-level channel” (also called a direct marketing channel) consists of a manufacturer selling directly to the final customer (Kotler, 417). AT&T retail stores are the only beneficiaries of the product who can offer U-verse internet service and homes services. The measure is cost effective, enabling AT&T to successfully reach our Bottom Line. Also customers will benefit from the level of distribution to ensure the highest quality of products while eliminating the middle man. The products will directly be delivered to the AT&T retail stores to offer the bundles a reasonable price of $29.99 for each featured service included in the bundle package; or $44.99 if ordered separately. Marketing Research AT&T research methods will entail interviewing and survey employees who may utilize the service and can speak on any issues that may occur. Also AT&T will periodically survey current customers as well as customers who have their services and are quite satisfied. Level of DistributionControls These controls are to measure and facilitate the marketing strategies designed for AT&T. AT&T will follow the objectives of the marketing plan to ensure that all milestones are implemented for a successful outcome. We will set by AT&T during the planning stages and r e-evaluate objectives and marketing strategies to build a customer base. If there are corrective measures we will address them with marketing managers and other levels of management.ImplementationAT&T strategic marketing plan is implemented to address the former customers of AT&T products and services. Marketing and advertising in the 10 major metropolitan markets; campaigns set to runs 6 months per media vehicle for two years. The advertising and marketing strategy will consist of television, radio, newspaper, outdoor media, Internet/Online and Social Media to pull in and build our customer base.Marketing Organization Contingency PlanningAT&T will use two control methods to monitor the sales and resulting success of this marketing plan. The first method is the Annual-Plan method. The annual-plan method will help to determine whether the planned goals are being met. To approach this plan we will analyze our sales, relative market share and financial information. AT&T will also implement the efficiency control plan to evaluate and improve the spending efficiency and impact of marketing expenditures. The efficiency control plan will analyze the efficiency of the sales force, advertising, sales promotions and distribution channels. (Marketing Management 13th Edition)AT&T will conduct an annual marketing audit to examine the marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance. This marketing audit will evaluate any changes in our concerned demographic; any trends of the economy; the environment; technological advances; the political environment; and any cultural changes. AT&T faces certain threats and weakness like governmental regulations, weather damages and the saturation of the telecommunications industry. In the event that these threats and weakness begin to affect AT&T and is marketing efforts we will rely on the marketing audit to assess all challenges and adapt to each situation accordingly.ConclusionThis proposed marketing plan has been created to effectively market the AT&T Internet, TV and Voice bundle service. This particular bundle will provide customers with more overall value. The product features a wider variety of TV channels, superior internet speeds, and premium quality phone service at a very competitive rate. Even as the telecommunication industry remains very saturated, AT&T is one of the industry’s top competitors alongside Comcast, DishNetwork, and Direct TV. AT&T has been able to capture 26% of the telecom market share. To increase customer sales and ultimately increase the relative market share AT&T will strategically implement a market plan to entice new customers with the bundle service that provides more overall value at a competitive rate. This marketing plan will use a marketing mix that includes traditional channels of advertising: Outdoor, Newspaper, Commercials, Internet and Social Media. AT&T has also developed a new customer referral program that would allow current customers to refer new customers to an AT&T service in exchange for valuable rewards such as 10% off one month’s bill, no taxes added to one month’s bill or a $50 gas card.The goal of this marketing plan is to stimulate growth to ultimately increase the customer base by 20%-25% while retaining the current customer base and to increase market share by 1% by 2014. We are targeting people between the ages of 30-55 with an annual income of 40,000-90,000. More specifically we are targeting customers living in the top ten MSAs of the United States.AT&T will be using a zero level distribution channel which means that manufacturer will sell directly to the final customer. In order to monitor and make sure that this marketing plan is successful we will follow two methods of control: Annual control plan and the efficiency control plan.BibliographyAir Time Academy. Retrieved December 5, 2011. from airtimesecrets.AT&T Services. Retrieved December 1, 2011. From , Russ. AT&T Company Profile: Strengths. Retrieved December 10, 2011. From , Russ. AT&T Company Profile: Financials. Retrieved December 3, 2011. From , Jeff. Telecommunications in the US. Retrieved November 18, 2011 from . Competitive Landscape. Retrieved November 3, 2011 from IBISWorld. Kaczanowska, Agata (April 2011). Cable, Internet, & Telephone Providers in the US. Retrieved November 3, 2011, from Management, 13th Edition. Pearson Learning Solutions p. 649. <vbk:9781256083979#outline(29.5.1.1)>Keller, Philip Kotler and Kevin. Marketing Management [13] (p.417)Plunkett, J. W. (2011). A Brief History of Deregulation. Telecommunications Industry. Retrieved November 3, 2011, from , J. W. (2011). Company Profile: Comcast. Retrieved November 6, 2011 from , J. W. (2011). Company Profile: DirectTV. Retrieved November 6, 2011 from , J. W. (2011). Company Profile: EchoStar corp. Retrieved November 6, 2011 from , J. W. (2011). Company Profile: AT&T. Retrieved December 3, 2011 from Commercials. Retrieved December 10, 2011. From ................
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