Technically inclined subscribers wonder why they must pay someone to complete a Job they can do themselves for free. Installation costs start at $29. 5 and increase incrementally depending upon the number of outlets the customer needs to have activated and/or installed. New customers, as well as existing customers who are transferring service to a new home, must call the company or apply online for service then wait for the technician to begin service. These costs along with the inconvenience of waiting for a technician and the lack of choices available in cable channel packages are some of the reasons given for choosing a competitor to provide service instead of Cox.
The company’s vision “to be the best company to work for and do business with, improving the quality of life in the communities we serve” along with its mission “to bubble shareholder value every five years, creating a trusted brand where innovation meets quality execution” are a testament to the companies commitment to its customers and the perfect reason this new service, the Selective Cable On-line Ordering Plan or SCOOP(D is perfect fit for Cox Communications.
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New Product Description What would happen if we as consumers went to the grocery store to buy oranges but could only get oranges in an assorted fruit basket, along with apples, lemons, and bananas? Or what would our reaction be if we wanted to purchase a recently released action movie DVD, but were forced to buy a romantic comedy, a foreign engage film, and a children’s movie as part of a “special” package deal?
Chances are that none of us have ever been forced into either of these situations, nonetheless, most cable and satellite subscribers are usually forced to subscribe to cable packages and pay for channels they will probably never watch Just to get the handful they may be interested in watching. Marketing Plan MAKE 421 By fearlessly What it an innovating cable company tottered a groundbreaking cable service with online account access to add or remove channels from the customer’s account?
What f this company offered this service allowing subscribers to choose the exact channels they wanted and only charge for those channels, with an “a la carte” price for each desired channel each month? What if they also offered the option of setting up new service without having to wait for a telephone representative or an installation technician? How many of us would Join up? With new advances in HDTV, pay-per-view, and digital technology, satellite and cable TV suppliers are engaged in a fight for supremacy and market share by offering tailored customer packages that range from the very basic to the most inclusive of channel packages.
However, major satellite and cable providers are quickly learning that streamlining customer revenue management and billing processes are critical to supporting a variety of services with different levels of programming, bundled service packages with single bills, personalized services, and real-time subscriber interactivity. In order to maintain its competitiveness, Cox Communications must be able to selectively target those services most utilized by their customer base and charge the appropriate value for those specific services.
Bottom line, Cox Communications must implement new marketing strategies based on flexible pricing options targeting different pricing strategies and programs at different customer sectors based on their needs, requirements, and socioeconomic status. Cox Communications also needs the ability to develop cross-promotional and marketing programs through which premium products and services can be targeted to specific subscriber segments based on actual customer behavior and needs.
Establishing the Selective Cable On-line Ordering Plan or SCOOP(D will be the first step in the deployment of a service delivery model that allows for a targeted, highly marketable and profitable “pay per use” service model. Importance of Marketing SCOOP(D The best product or service if unknown to the consumer will never sell and will be unsuccessful. Many factors influence the choices made by a potential customer. Many companies other than Cox offer video, data and telephony services to consumers. Cox Communications must market itself and its products and services to gain the loyalty of subscribers.
The selection of a provider for these services is an important decision that is influenced by many variables; the cost of service, the cost of installation, and customer service, to name a few. If the subscriber calls to start ewe service and is placed on hold for an extended period of time they are likely to hang up and call another provider, if the cost for installation is higher than another a quote received from a competitor they may choose the services of that company, and if the cost of the chosen service is higher than the competitor the subscription for service may be lost.
Successful marketing can be the difference between a company making a profit or filing for bankruptcy. To guarantee success, Cox Communications must provide its customers with a reliable competitively priced product. To increase TTS competitiveness the Selective Cable On-line Ordering Plan will effectively provide a highly desirable, marketable, cost-e SHOOT Analysts dive, and pro Gable “pay per use” service. The SHOOT analysis is the strengths, weaknesses, opportunities, threats, and trends of Cox Communications.
Strengths * Meeting customer needs * Flexible customer service * Strong competitive advantage * Strategic initiatives: globalization, modernization, diversification * Strong commitment to keeping up with technology advances Weaknesses * Finding effective advertising methods for medium to low income market sector Lack of internet access for this particular market sector * Competitive advantage by satellite providers with respect to the number of channels and the type of services they can offer Opportunities * Rapid regional population growth * Rapid advancements in technology * Huge market size – there are mote than 100 million television households in the United States (wry. Millennia. Com) * Huge targeted sector – 99% of American households watch an average of 4. 5 hours of television per day (wry. Millennia. Com) Threats * Rapidly growing minorities with less acquisition power Dwindling domestic market gar * Satellite TV competitors Trends * Improving technology * Technology as’. N. Y consumers * Increased internet access * Increased use of interactive TV I. E.
Shopping networks * Increased demand for pay per view and on demand services Marketing Research Besides manufacturing SCOOP(D and placing it on the market to see how many people would buy it, there are two other ways to obtain answers to marketing questions before placing a product on the market and predict its success; directly or indirectly. The direct method to find out if your idea will be a success requires the company to talk to potential consumers to get their opinions. In order to accomplish his we can: * Use Telemarketers * Talk to people face-to-face * Send a survey in the mail * Gather consumers in a group and talk to them The indirect way to complete market research is to review products that are already in the marketplace. What companies are making similar products such as SCOOP” What is different about their product from ours? How is the product marketed?
Whichever technique is used for market research, the goal is to ask questions and get back answers to your questions as well as new ideas for products and services. These new ideas are important because we will learn things that we may have never thought. Www. Lib. Default. Deed) To determine if our new product SCOOP(D will be successful we will employ a combination of both of these techniques. Directly asking existing customers several questions: P a product you would use? * Would other members of your family use SCOOP” * IS scoop user friendly? * Would SCOOP(D keep you from choosing the competitor? * Would you change SCOOP(D in any way? Indirectly we will look at other cable companies in other markets to see if they are offering any similar products.
Comparing their product to as well as reviewing any market research they obtained to estimate the potential success of the product. Identify the Segmentation Criteria Identifying the segmentation criteria is the foundation for creating a prosperous marketing campaign. Determining the who and how are the initial components in identifying the segmentation criteria. Building the right relationship with the right customers is essential to the success of SCOOP or any other marketing plan. Because many types of people subscribe to cable television for many reasons – from the stay- at-home mom to the sports fanatic brother – defining market segmentation for SCOOP(D is vital. Blanket marketing a product to the general public would most likely be fatal to a company.
Segmentation is comprised of several components; geographic, demographic, cryptographic, and behavioral. (Anderson 2005) Both demographic and cryptographic elements will be considered when developing marketing material for [email protected] Age, family life-cycle, and income will be analyzed in the demographic category and social class and lifestyle will be considered from the cryptographic category. Younger more technologically advanced consumers, those that feel the need to “keep up with the Jones’, frequent travelers, and those on a fixed income will all find benefits in this innovative product, though they may be drastically efferent. A target market is a group of buyers with common needs or characteristics. Armstrong 2005) Target groups for SCOOP(D would be: 25-40 year old working professionals who are technologically inclined 55-70 year old retired residents who travel 3-4 weeks or more at a time possibly several times a year 18-30 year old techno-geeks who want all the newest gadgets on the market tying the segmentation and target market and putting the time and Otto creating a marketing plan for SCOOP(D will increase sales and decrease the risk of failure. Cox communications plans to target the right markets and follow through tit individualized plans for consumers. Without a loyal client base there can not be a successful and profitable outcome.
Organizational Buyers and Consumers Organizational buyers are those customers who purchase a large amount of a product for its company. Consumers are those individuals who purchase a product for their own use or consumption. SCOOP(D will be marketed to both organizational buyers as well as consumers. Organizational buyers such as; extended stay hotels like Budget Suites, senior residences that provide cable for their residents, and apartment complexes will find increased convenience with this new innovative product. Consumers will opt to have SCOOP(D for installed into their privately owned homes or condominiums. SCOOP(D will allow the individual to change their cable channels and internet speed in a moments notice.
Based on individual needs, consumers can add and delete cable channels in order to have access to stations that are playing movies or sporting events that the customer wants to watch. Retail stores like Best Buy and Fry’s are also potential outlets for our product. By offering SCOOP(D both Cox Communications and the retailer benefit. The retailer benefits by being able to offer another service to its customers, possibly at a promotional rate hush enticing the consumer to purchase new electronic equipment; Cox benefits by the additional promotion and selling of its new and existing products and services. Many factors influence the purchasing decisions of both organizational buyers and consumers. Some of these factors are the same in both groups and some of them vary.
Organizational buyers look at factors like: the pence of scoop the ease of installation the cost of installation the value to a potential home buyer the value to a potential renter Consumers consider factors such as: the ease to installation the convenience it provides the ease of use Impact on Marketing Strategy Common factors influence both organizational buyers and consumers. Price, ease of installation, and cost of installation are considered by both types of buyers. Therefore, we will incorporate these issues into our marketing strategy. Print ads, TV and radio commercials, and flyers will all point out the price vs… Value of SCOOP(D , the ease of installation and the low cost of the installation compared to the potential benefits SCOOP(D will provide.
An organizational buyer marketing strategies, we will also focus on the value to a potential home buyer, or renter. In consumer marketing e will highlight the convenience the product provides by allowing the consumer to turn on and off services as needed, add channels in a moments notice, and start or stop service at the last minute. We will also focus on the simple operation of the device. Another marketing strategy will be to appeal to the consumer’s behavioral habits. Many customers purchase service at the last minute because they discover a sporting event or other special programming is about to be shown. By having this service they will no longer have to miss the event Just because they found out it was playing at the last minute.
All they will have to do is order the service or channel in the comfort of their own home without having to wait on the telephone for a customer service agent. Analysis of Current Competitors Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. (wisped. Com) Steps to competitor analysis include: define the industry determine who your competitors are determine who your customers are determine what benefits they expect Indirect competitors include other cable providers. Although in most cities only one ajar cable provider exists there are some markets that have multiple cable companies offering service and there is always the potential that another cable provider will enter the market.
Other cable companies include Delphic, Compact, and Time Warner. Direct competitors of Cox Communications consist of: satellite providers like Directs and Dish Network; telephone and DSL internet providers like Sprint, CBS, Empower, Peonage, and AT; and dial up internet providers like AOL, EarthLink, and Net Zero. These provider offer similar products and services to Cox Communications: Digital Television Internet access Telephone Service Installation Equipment – rental and purchased Repair technicians The differences are found in the number of channels offered, the speed of the internet, the security of the phone lines, the cost of the equipment, and the cost of installation and repairs.
None of Cox’s competitors can offer a free professional installation without charging for it somewhere else in the product line. This cost must be incorporated into another portion of the customer’s service, usually the monthly fee. By offering a Selective Cable On-line Ordering Plan option that can be installed in a home or apartment once increases the value of the dwelling and makes it easier for he subscriber to purchase the service. Being able to complete a self installation that was once only available by a professional technician at a charge provides significant savings to both Cox and the customer. By offering multiple products, satellite companies comprise the largest competition to the cable company.
Because a satellite dish must be mounted on the home and a specific directional signal contact must be attained it is almost impossible even for the technologically advanced customer to self install a satellite system let alone the average consumer. Therefore, he introduction of SCOOP(D will give Cox Communications a competitive advantage over the other satellite providers. When beginning a marketing plan each piece of research and data, and each phase of implementation are very important. The old saying that “you are only as strong as your weakest link” holds true for marketing also. If you have inaccurate or inappropriate data or compromised information, you might as well start over from the beginning. Marketing for a company like Cox Communications is not only a numbers game, but a game where you must gain the interest of your consumer and retain it for years to come.
Attributes to Selective Cable On-line Ordering Plan or S Establishing the Selective Cable On-line Ordering Plan or SCOOP(D is the first step in the deployment of a service delivery model that allows for a targeted, highly marketable and profitable “pay per use” service model. SCOOP(D is a USB device that connects to an existing cable box and automatically configures the cable box as an on-line programmable device. SCOOP(D is both a product and a service. It is a device that the customer rents and is also a service that they must to subscribe to as part of the Cox Cable subscription program. Subscribers are then billed each month for revises they select at the beginning of each billing month.
The mission of Cox Communications is to offer the easiest and most complete home entertainment experience. SCOOP will enable subscribers to order a mix of different cable channels each month and will only be responsible for paying for channels they order in advance. Subscribers can also choose to revert to the basic cable package if they will not be at home during certain parts of the year. SCOOP(D works by facilitating access and subscription of cable channels by displaying the channel’s name, content description, and prices in the subscriber’s TV screen. SCOOP(D will then allow the subscriber to select their cable packaging from the comfort of their home.
SCOOP(D enables Cox Communication to give full ownership of the selecting process to the subscribers and eliminates any requirements for interaction between consumers and salespeople. Cox Communication’s key marketing objective is to provide a flexible pricing option that will target a varied segment of the consumer population and one that will provide different pricing strategies and programs at different customer sectors- based on their needs and likes. At first glance it would appear that variable pricing option may not be a winning proposition to Cox Communications, however; this initiative is sure to attract new subscribers. Cox communications marketing will be directed at convincing people that SCOOP(D is a cheaper alternative to pre-set cable packages.