The accuracy to market is concern of telecommunication firms as part of the technology driven industries. Designing products that meet customer needs, while still aiming to be first to market, is often dilemma for firms in such industries. It has been argued for some time that primary means for achieving competitive advantage is by accelerating the new product development process (Karagozoglu and Brown, 1993; Lynn et al., 1999; Page, 1993). The purpose of this research is to explore how marketing research affects market strategy and opportunity in UK telecom industry as the study will examine relationship between dissemination and use of marketing research in the telecommunications industry.
Overview of Literature Study Langerak et al. (1999) and Millson et al. (1992) argue that creating customer value should be the focus of new product development efforts. There focus on the customer involves doing marketing research to confirm market acceptance and identify product requirements and design. Karagozoglu and Brown (1993) indicate that majority of firms involve customers in the development phases of market process as it permits the greatest leverage of customer information. The undertaking marketing research with or about customers is critical to reducing new product development marketing ways. Why the telecommunications industry?There is faster new product development is important to many firms, particularly those in dynamic and hostile environments (Calantone et al., 1997; Kessler and Chakrabarti, 1996). One industry, which is currently operating in such an environment, is the telecommunications industry. The signing of the Telecommunications Act which prevented local phone companies, long-distance companies, cable TV and wireless service companies from entering each other’s business, the companies are able to bundle variety of services and, more importantly, make significant progress toward building high-speed information highway, which can transmit voice and video communications by entering markets previously closed to them. How has deregulation changed the telecommunications industry? It has increased competition, as companies from different industries and different parts of the world vie for position in this diverse industry. Deregulation has led to the development of competing products and technologies in an attempt to be at the forefront when standards are established.
Telecom firms that face such highly competitive and dynamic environments are predicted to face greater pressure to bring products to market faster than those that operate in more stable and static environments (Calantone et al., 1997; Kessler and Chakrabarti, 1996). Moreover, in recent study, Ittner and Larcker (1997) suggest that more research is needed on the relationship between various marketing practices and strategic cycle in diverse technological and competitive settings. Thus, focus on UK telecommunications industry as dynamic paced industry that has seen ever-shorter product life cycles in recent years. Given these characteristics, the usage of marketing research in developing marketing strategy may prevent or reduce the need for multiple and lengthy tests of individual marketing strategy elements such as packaging, pricing, advertising, brand name. The below illustration is an example of marketing stance of EU telecommunication industry in which UK is a part respectively.
Figure One: Marketing orientation evaluation in the EU mobile telecommunication enterprises
Figure Two: Average evaluation of marketing orientation of EU mobile telecommunication Operators
Source of the above, adopted from: Kurtinaitienė, J. (2005), Marketing orientation in the European Union mobile telecommunication market. Marketing Intelligence & Planning Volume 23 Number 1 pp. 104-113 Emerald Group Publishing Limited
The specific market segmentation does consist of detecting, evaluating and selecting groups of individuals whether they are consumers or not as with the purpose of designing and directing competitive strategies towards them. A review of academic research reveals the scant attention paid to the evaluation and selection of segments. Most of the studies merely evaluate the sales potential, the attractiveness, or the stability of each segment, with no reference to management needs. On the other hand, the creation, application and verification of quantitative methods which would build these groups have been the main target of academic efforts (Wind, 1978) as detecting better segments is of such great importance that it has very frequently been considered as a goal in itself.
MethodologyThe companies which perform segmentation studies in their marketing and research departments, the principal companies working in this field are market research through telecoms as there covers survey questionnaire/interviews and from the interviews there is qualitative information about segmentation research design. There are two main objectives first, to assess the level of evaluation and selection of segments tasks of UK telecom market segmentation process. Second, to discover frequency with which the industry assess and select segments and the research methods used. The interviews were required to indicate the degree of difficulty they found in the performance of the different stages of the process. The possible answers were structured following a five-point Likert scale (1 = very low level of difficulty; 5 = very high level of difficulty). Aside, it is very important to make use of management support systems, which allow the identification and evaluation of alternative segments (Reeder et al., 1987). The full co-operation of all the company departments involved in segmentation study and strategy is fundamental. The evaluations must be able to detect deviations and discordances between the detected segment characteristics and the objectives of the market segmentation strategy.
The telecommunication industry has undergone considerable restructuring for many years now thus, involving mobile telecoms success in UK telecoms have become opportunistic seekers within the mobile business and its market stance. The marketing environment is becoming competitive, international market is expanding and telecoms are returning to profit valuation wherein costs are considered and market segments are applied within ideal grounds (Betts, 1994; Skapinker, 1995). Then, market opportunity implies better market context wherein access to customers and market chain solutions are adopted as well as executed with emphasis on strategy formulation such as providing ample market base for market mix and segmentation (Driver, 1999).
Moreover, competitive advantage is outcome of strategy capable of helping UK telecom business to maintain and sustain favorable market position and translated into higher profits compared to those obtained by competitors operating in the same industry. The implementation of telecom strategy develops consistent system of strategic objectives, adopting complex of coherent functional policies. Then, the system of objectives and policies must be kept consistent with the external conditions of the market in deciding strategies and policies. Nevertheless, UK telecom adaptation to industrial environment requirements has to be seen in dynamic form, in which there constantly adapts its action to external and internal changes in changing pattern. Furthermore, there intends to replicate past strategies in a sort of cycle whereby inertia and lag mechanisms operate to maintain the same conduct, beyond and sometimes in opposition to pay-off evaluation results. In this sense, firms can be locked-in or locked-out of some strategy choices, losing the opportunity of being more flexible in their decision process. In this way, telecom industry should recognize when it would be better to change strategy and when to continue the strategic process (Toh and Hu, 1990). Furthermore, the need for segmentation understanding of market resources and competencies into a useful approach does improve service quality image by communicating market attributes done efficiently.
Furthermore, formulating effective market approaches for achieving segment in such market survey application wherein certain marketing objectives are deemed possible. (Doganis 2001) Aside, market approach in line to Porter's theory that there can be ideal strategies; UK telecom can adopt to achieve marketing advantage over others such as the following:
- Cost leadership wherein UK telecom seeks to be the lowest cost producer by selling standard, mass products
- Differentiation where telecom industry introduce unique dimension that is considered to be important to the market
- Focus that involves targeting certain segment of the market and to be adopted by the UK telecom
The UK telecom should have detailed plan for their strategic moves in the market and be able to provide good customer services to the customers like by having discounted flights and value promotion to keep the competitive advantage at stable mode within its competitors and will need to focus more on the core competencies that allow business to practically and wisely design suitable airline operations within the bracket of their marketing network services in a market standard-based perspective.
The need to be goal oriented and must not stop to rejuvenate and change their marketing plan strategies from time to time in order to re-invent the performance process upon the upgrading of rules and regulations for segmentation of the market leading to stable market sales and profit (Doganis 2001). UK telecom need to segment customers using value-based and needs-based approaches and must be proactive in pursuing initiatives that respond to the needs of their customers and also provide high rate of return also, the need to pursue an organizational design allowing value-based segmentation to satisfy every customer (Cited from, Elliot, 1990 p. 28). The dynamism of telecom industry makes it a challenge for any one player to respond to various market innovations as possible. UK telecom will have to continue their efforts to build complete and integrated market strategy planning and decision support software solution combining the major revenue and cost drivers and the proficiency coupled with a strong knowledge based service offering as it can be essential to any idea of expansion of services.
The need for UK telecom to strengthen whatever opportunity that can be found in airline industry through engaging into established process of valuing its marketing strategies and a detailed planning structure helping promote better strategic moves and be able to provide good customer services to the customers like by having discount promotion to keep the competitive advantage at stable mode within competitors and will need to focus more on the core competencies that allow sustainable market operations through online market and communication, UK telecom long-term strategy is to improve its profitability to create substantial shareholder value and to maintain its position and to continue to grow and diversify the business into new markets and maintain flexible, diversified market network for investing better customer service initiatives within the business. Furthermore, in marketing instance there can be the adaptation of useful segments like the feature mobile segmentation, the involvement of mobile packages through the presence of internet media as a form of customer segmentation, the developing of strategy in UK telecom, there is critical need for business leaders to assess market structures available within the industry. (Prahalad, 1990)
Figure Three: Sources of quantitative techniques
Source, adopted from: Hussey, M. and Hooley, G. (1995), The diffusion of quantitative methods into marketing management Journal of Marketing Practice: Applied Marketing Science Volume 1 Number 4 pp: 13-31 MCB UP Ltd
The research methodology and design process would involve such primary as well as secondary sources for bringing about substantial studies that are literature based and theoretically inclined for which such research methods utilized may truly serve its first hand purpose for this study. The primary sources will have to represent original thinking as the core data for the research will have to be in case studies as well as survey questionnaires equipped with suitable statistical data and its measures as it can have direct observation to the research process as undergoing research should be handed in with empirical facets and crucial points gathered by the researcher. The secondary data will then analyze and evaluate information as being found in the primary sources and creates information more accessible to the readers and the parties involved supported by journals, articles and other publication types.
Survey Questionnaire
The researcher is conducting a study on marketing opportunities and strategies useful for telecom industry upon making necessary recommendations for this study; a questionnaire is designed to gain respondents’ feedback. The information given will be treated in strictest confidence.
Thank you.
Part 1: Personal Data
Direction: Please fill up in all the necessary information about yourself. Don’t leave any item unanswered.
a. Age ______
b. Gender
Male ( ) Female ( )
c. Civil Status
Single () Married ( ) Separated ( ) Widow/Widower ( )
d. Educational Attainment
Elementary ( ) High School ( ) College ( ) Graduate ()
e. Occupation:_____________
f. Religion:____________________________
g. Number of years in the company:_____
Part 2: Determining better market segments by using appropriate market process in the UK, on a scale of 1 to 5, rate the following statements within certain perception on marketing research as the scales can be: (1=strongly disagree, 2 disagree, 3 uncertain, 4 agree, and 5 strongly agree). Please tick only 1 column.
A. Market Segmentation Issues
1. With regards to market segments, the telecom business in UK is utilising strategic protocol for securing their customers.
5 4 3 2 1
2. Segmentation channels within UK telecom ensure that lack of market segment success can be due to weak management and service of market communication.
5 4 3 2 1
3. Improving the value of telecom industry is vital to the development of information technology within its strategic core for strategic driven mechanism.
5 4 3 2 1
4. In accordance to market research and management, the realization of promotions and other business offers is utilized to ensure better market cycles.
5 4 3 2 1
5. The UK telecom industry marketing sectors created strategies that ensure sales assets and online planning for the success of market segments.
5 4 3 2 1
B. Marketing Opportunity Integration
1. Most of mobile telecom in the UK has qualified and competent personnel to implement effective strategies of marketing
5 4 3 2 1
2. The UK telecom provides effective online marketing promotions planning as related segmentation execution
5 4 3 2 1
3. Sectors of UK telecom industry have ample knowledge in market strategy and how it works effectively.
5 4 3 2 1
4. Marketing reality makes sure that UK telecom understand the importance of segments and market value for growth and success.
5 4 3 2 1
5. The market opportunities are considered ideal in terms of technology usage for customers to appreciate marketing drivers being used.
5 4 3 2 1
C. Market Effectiveness of Telecom industry
1. Marketing networks in the UK telecom design effectiveness of marketing program.
5 4 3 2 1
2. The different industries involved adopt a customer focused marketing model with respect to the implementation of strategy networks design for good customer service.
5 4 3 2 1
3. The telecom industry is handling well consumers’ complaints effectively through effective retention programs like freebies and promotional activities.
5 4 3 2 1
4. The current information on marketing approaches within UK telecom offers good market service to the customers.
5 4 3 2 1
5. Effectiveness into the market approaches do enhance the capabilities of mobile users to completely be in serve in a specific time.
5 4 3 2 1
Interview Questions
1. How long have your organization implemented the market segment process?
2. In your opinion, what made the company decide to adopt marketing strategies on a more comprehensive manner, why?
3. What are the possible factors UK telecoms will consider before planning such marketing pattern for satisfying mobile users?
4. As an employee, what were the problems you encountered while on the process of serving quality market stance to customers?
5. How did you deal with the marketing problems if there is any?
6. Now that the company has applied market segments and certain market models, is the outcome successful? Explain
7. Based on the current status of marketing value in telecom organization, what are the benefits of implementing better market segments?
8. Do you prefer market segmentation method that is traditional market communication in the telecom industry? Why?
9. Are you satisfied with marketing quality as well as services provided by the company?
10. What do you think are the areas for market improvement for telecom companies to incur enough marketing service channels?
Resource
The resources deemed for the realization of the study can come from related books and certain publications mostly underlying to the support resource materials ideally as basis for the literature studies of the study. The knowledge and information to be integrated and evaluated for validity and reliability can be resources directed to emerald insight journals and articles as well as from the Questia Library.
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