Marketing Plan – Verizon Fios
Essay Preview: Marketing Plan – Verizon Fios
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Marketing Plan: Phase II
Verizon FiOS recognizes the changing needs of customers and clients, and are meeting those needs by providing quality in service, products, and innovative technology. A new product has been developed in an effort to satisfy the needs and requests of its current customers, and to attract and recruit new customers. Marketing demands strategy, a target population, promotion, and consumer appeal, Verizon has established the Four Ps (Product, Price, Place, and Promotion), and is preparing for the next phase of the marketing plan. This paper will reveal the next phase of the marketing plan that will ultimately get the voice activated all-in-one multimedia control box, SpeakIT, to the target market. The target market and the impact the segmentation criteria has on this population will be identified. A description of the organizational buyers and consumers, what influences their purchasing decisions, and how these components affect the marketing strategy of Verizon FiOS will be revealed. Analysis of current competitors and the competitive landscape for the new product will also be defined. A marketing strategy is essential in reaching the target market because consumers who have a need and desire for a product or service will become customers and clients.
Segmentation Criteria that will Impact Target Market
The division of a market into groups of buyers with specific needs, characteristics, or behaviors that may require individual marketing strategies or mixes is market segmentation (Armstrong & Kotler, 2009). Expounded, market segmentation is identifying and recognizing growth opportunities in particular segments (populations) of consumers according to their wants and needs. The criteria or standard that will impact the target market selection of Verizon FiOS is convenience. Under the umbrella of “Convenience” one must consider the numerous variables of segmentation such as geographic, demographic, behaviors and attitudes, and psychographics. When considering the segmentation criteria for the Verizon FiOS SpeakIT, the marketing team researched geographic, demographic, behavioral, and psychographics variables. Geographic segmentation revealed the states, counties, cities, and neighborhoods in which Verizon FiOS provides its fiber optic media services, as SpeakIT will be a companion to the current services. Demographic segmentation will determine the variables such as age, gender, family size, income, education, occupation, religion, and nationality of consumers within the geographic segmentation. Demographic factors are the most relevant to Verizon FiOS as customer needs, wants, and usage rates tend to mirror the demographic variables (Armstrong & Kotler, 2009). Behavioral segmentation reveals the attitude toward the SpeakIT, potential user, convenience factor, speed, and customer intent. Psychographics segmentation discovers consumer lifestyle, mode of spending (conservative, compulsive), enthusiastic, gregarious, or competitive. These factors will determine who within the geographic segmentation will likely purchase the Verizon FiOS SpeakIT.
Target Market
“A target market is a specific group of consumers at which a company aims its product and services” (“Target Market,” 2011). Verizons target consumers are groups that are more than likely to purchase the Verizon FiOS SpeakIT. The goal of Verizon FiOS is to appeal to a specific market group with hopes of not being too general in the selection. For Verizon to meet this goal there are several questions that must be addressed when considering who the target market may be. Some examples of the questions to find the target market are the consumers male, female or both?, what age grot market are up are the consumers?, where do the consumers reside? Are certain geographic locations a hindrance for some consumers?, what is the household size of the target consumer? etc. (“Target Market,” 2011). The answer to each of these questions and many more will and can determine the success of Verizon FiOS SpeakIT.
With all that being said, Verizon FiOS, in determining their target market, should consider a selection method known as generational marketing. Generational marketing “is an approach to product development, customer relationship management, communications and marketing that recognizes generations as archetypes.” (Lake, 2001) To explain this in layman terms, generational marketing defines consumers not only by age, but by economic, social, psychological and demographic elements. This method would be a strategy for Verizon FiOS which would provide a more competitive advantage setting them apart from other companies that produce consumer products or services. Verizon has to understand that a customers lifestyle and social values are just as influential, if not more, than determining the consumers based on income or gender.
In order for Verizon FiOS SpeakIT to be successful using this particular marketing method, it is important for the company to understand “how the motivations of your consumers correlate with the underlying values of their generation”. (Lake, 2001) Knowing this will help Verizon to customize a marketing strategy that satisfies particular generations when trying to sell the SpeakIT and its services. Furthermore the needs, wants and the desires of the consumers would be more accurately addressed.
Organizational Buyers and Consumers with Purchasing Decision Factors
The buyers and consumer of SpeakIT can depend the reasoning behind the person purchasing the product. The SpeakIT product is a voice activate media box which can offers its use to not only personal homes but all businesses. Think of teachers who are trying to perform a presentation for the class, the teacher does not have to take time to set up the device and switch over to a projector or a television. The teacher can tell the box what to do and they have the ability to save time and give the presentation to the class. With no longer needing a remote to control different things, a person will no longer have to make sure they purchase the remote and have batteries. Consumers who have chosen to use the SpeakIT product within their home now has the ability to set parental controls based on kids voice recognition. Kids find out passwords but voices are hard to duplicate and it is unlikely that they will have the ability to watch T.V. programs which parents have not preapproved. Also with the voice activated media box parents have the