MARKETING COMMUNICATIONS LISA 2010

8/7/2019 MARKETING COMMUNICATIONS LISA 2010

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INTRODUCTION

Cable & Wireless is a consolidated group of companies comprising subsidiaries,

associates and joint ventures around the world. It is one of the world¶s leading

international communications companies which operate through two standalone

business units ± International and Europe, Asia & US. Cable & Wireless International

offers mobile, broadband, domestic and international fixed line services to residential

and business customers while the other business unit provides high quality managed IP

services to large enterprise customers to the largest users of telecoms services across

the UK, US, continental Europe and Asia.

This report will be focused on the Europe, Asia and US business unit.



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A NALYS IS

MA RKET A NALYS IS:

Cable and Wireless currently dominates about 16% of the telecommunications market.

The company¶s principal operations are in the business-to-business market and is now

segmented based on the size of the organization that may be a potential customer. Its

strategy is to focus on serving a distinct group of customers, who need more from their

telecommunications supplier and a wide range of IP-based services. Some of these

customers include companies offering financial services, insurance, energy and utilities,

transport and logistics, retailers, mobile enterprises, reseller and carrier partners and

the public sector. The current customer base is approximately 30,000 businesses of

varying sizes but is currently focusing on reducing this amount to about 3,000 largeenterprise businesses, global carriers and the UK Government.

Cable and Wireless undertakes a differentiated marketing segmentation strategy, where

unique or customized service plans are developed per organization depending on the

complexity or particular needs of the business unit.



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COMPETITOR S A NALYS IS:

In the UK, there are many telecommunications carriers competing with Cable and

Wireless. The company¶s 2 main competitors are as follows:

B T GROUP P L C- is one of the world¶s largest providers of communications

solutions and services, operating in around 170 countries. The group¶s principal

activities include networked IT services; local, national and international

telecommunications services; higher-value broadband, and internet products and

services. The group has operations in Europe, Americas and Asia Pacific, is

headquartered in London and employs an average of 106,200 people.

CO L T Telecom Group- is a provider of data, voice, and managed services to

business and government customers in Europe. The company operates an

integrated IP (internet protocol) based pan European network linking financial and

business centers, as well as providing a range of telecommunications services to

corporate and carrier customers. The company is headquartered in Luxembourg and

employs about 3,750 people.

Both companies utilize all 5 elements of the communications mix. BT utilizes strongpublic relations campaigns as their competitive advantage. Some of BT¶s

communications strategies include:

BT is The Official Communications Services Partner for the London 2012

Olympic and Paralympics Games (Public relations)

The company has developed a ³Better World Programmed´ where 1% of its

annual profits goes to charity and educational initiatives

Sponsorship of the Dame Kelly Holmes Legacy Trust helps to give aspiring

young athletes the life skills to help them become the best.



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A competition to win a prize of £200 to give feedback on customers experiences

while using the BT website

COLT undertakes many sales promotions activities mostly focused on giving discounts.

Some of COTL¶s promotional tools include:

The company provides free upgrades to its existing customers¶

telecommunications systems

Customers who order a new service called ³Interstate Company DS1 US Private

Line´ is allowed a fixed amount of credit per month depending on the size of the

package chosen

Before launching some services, the company offers a 6 month free trial period



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COMP A NY PO S ITION :

MISS ION S TA TEMENT

³To become the global supplier of IP services to business customers´

The company currently employs approximately 14 000 employees of which are

professional and skilled workers with minimal labor workers. The nature of Cable and

Wireless¶ services require a highly skilled and technical staff. Management and leaders

within the organization adopt the democratic leadership style to allow a free flow of

ideas, beliefs and values. Cable and Wireless¶ main focus on customer service acts as

their competitive advantage to maintain customer loyalty.

PRODUCT : Cable and Wireless offers a variety of customized as well as standardized

services to fit specialized business needs. Some of which include: connectivity services,

hosting, contact centre solutions, internet services, IP based applications, LAN services,

voice services and security services.

PRICE : Since Cable and Wireless offers customized service plans, its prices vary

depending on the services acquired by each business unit.

The company uses factors such as price objectives and competitors pricing when

determining the price of its services. Price penetration is used as the company¶s pricing

strategy, where its services are provided at low prices in order to gain market share and

economies of scale. Its pricing methods vary from going rate pricing (the price

competitors are charging), customer driven or psychological pricing (the price the

customer is willing to pay) and cost plus pricing.

P LA CE : Cable and Wireless chooses the direct distribution channel where it uses a

company website, direct sales force and owned retail outlets. Factors such as the



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nature of the product and the company¶s target market are used when determining the

company¶s distribution strategy and channel choice.

PROMOTION : The Company currently utilizes all aspects of the communications mix

with more attention placed on direct marketing and personal selling. Cable and Wireless

uses many forms of media to reach the customers such as:

The main media used by the company is the utilization of the internet where new

or potential customers as well as existing customers can be educated about all

the services provided the company¶s financial situation, new promotions and the

company¶s history via the company¶s website. Also, customers can create a

customer account to monitor their transactions.

Direct mails are sent out and telephone calls are made by Cable and Wireless to

existing customers as well as potential customers to inform them about services

provided as well as new services launched and any promotions.

Besides direct marketing, Cable and Wireless utilizes many other aspects of the

promotional mix such as:

Advertising- Company vehicles with the company name and logo are used as a

form of advertising.

Sales promotions- Price discounts and free trials of the services.

Public Relations- Sponsorship of cultural events, sporting events, charities and

community activities. The company also has support programmes to benefit

children in need to give them the opportunity to advance their technology skills at

the company¶s Bracknell ITC Academy.

Personal Selling- Sales representatives go to the company¶s targeted

businesses to attract new customers, provide service information and educated



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the customers about the company, sell the company¶s services, deal with

customer complaints etc.



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CA B L E A ND WIRE L ESS¶ S WOT A NALYS IS

S TRENGTH S

1. The company has created a solid

foundation of good customer

service and better economics to

drive more service and product

innovation delivered off a much

lower cost base.

2. The company has developed a

highly informative and interactivewebsite so that all stakeholders and

in particular customers have easy

access through online ordering and

a self-service portal to information

and the range of services offered by

the company.

3. The company has many years¶

experience and has focused on the

enterprise market and targeted

certain business sectors thereby

achieving specialization and the

ability to provide an unparalleled

customer experience. This market

provides the company with the

richest product set and has high

operational barriers to entry for

competitors.

WE A KNE SS E S

1. The company does not have in

house capability to increase its

engineering support or economic

analyses to assist in sales

promotions.

2. Cable and Wireless does not

manufacture its own equipment so

that its reliance on third parties mayadversely affect its ability to deliver

to its customers within committed

time frames.

3. In the event of an economic crisis,

total reliance on business customers

only could be a major weakness.



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4. The company places great

emphasis on its employees¶ welfare

and its Corporate Social

Responsibility by contributing to the

positive social and economic

development of the communities in

which it operates. This enhances its

reputation and assists in its

business development.



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OBJ ECTIVE S

CORPOR A TE O BJ ECTIVE

Increase profits by 15% within the next year

MA RKETING O BJ ECTIVE

Increase sales by 10% within the upcoming year

COMMUNIC A TION S OBJ ECTIVE S Increase customer awareness by 10% within a 1 year period

Increase customer loyalty by 15% as measured by the number of retained

customers

Improve corporate image within a one year period



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MA RKETING COMMUNIC A TION E L EMENT S

SAL ES PROMOTION S

A variety of short-term incentives to encourage trial or purchase of a product or service.

In recessionary times, businesses are seeking ways to cut back on expenses and

some telecommunications services may seem to be a luxury to some companies.

Because of this, sales promotions are chosen as a factor to reduce some costs, add

value to certain service packages and to attract and retain customers.

OBJECTIVES:

To increase awareness and interest

To give customers incentives to purchase services provided

ADVANTAGES OF SALES PROMOTIONS:

1. Sales promotions can stimulate and increase consumer purchases.

2. Sales promotions do not cost as much as traditional media when promoting a

product or service.

3. It can also develop or improve retailer or middlemen efforts to stock and sell a

product.

4. Encourages trial of the product or service

5. Adds value to the product or service



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DISADVANTAGES OF SALES PROMOTIONS

1. The success of a sales promotion may depend on local adaptation. Since

cultures have an impact on any type of advertising/promotion, marketers must

ensure that the type of sales promotion they have selected for a particular

country is not a prohibited activity.

2. The up-front costs of sales promotions may be high.

3. Sales promotions, unlike other integrated marketing communications tools, work

often on a short-term basis only

4. Sales promotions strategies may have no lasting impact on the brand.



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DIRECT M A RKETING

Direct marketing seeks to target individual customers with the intention of delivering

personalized messages and building a relationship with them based upon their

responses to the direct communications.

Because this is a two-way communication process, direct marketing is chosen as a part

of the communications mix to allow feedback from customers in an attempt to fully

satisfy their needs and wants and also to cut back on the high costs of advertising.

OBJECTIVES:

To customize services for potential or existing customers

To create awareness and close the sale at a point in time

To increase sales by 5% within a one year period

ADVANTAGES OF DIRECT MARKETING

1. Many facets of the traditional salespersons¶ tasks can be removed, freeing them

to concentrate on their key skill areas.

2. Targets individual customers with the intention of delivering personalised

messages and building a relationship with them based upon their responses to

the direct communication.

3. Communication is two-way and interactive, is very fast, allowing businesses and

individuals to find information and enter exchange transactions in such a way that

some communication practices and shopping patterns are being reconfigured.

4. Direct marketing strategies are less visible to competitors.



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DISADVANTAGES OF DIRECT MARKETING

1. Some mails or even e-mails may be overlooked as junk mail

2. Competitors may become aware of information displayed on the company¶s

website

3. The speed time of the internet may be slow

4. May be seen as an intrusions of privacy

5. High cost of producing catalogues as a form of direct marketing



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PU B L IC RE LA TION S

A variety of programs designed to promote or protect a company¶s image or its

individual products.

This method has been chosen in an attempt to up-keep a good company image as to

retain customers.

OBJECTIVES:

To increase customer satisfaction

To increase customer loyalty

ADVANTAGES OF PUBLIC RELATIONS

1. There is no cost for media space or time

2. The endorsement offered by a third party can be very influential and have far

greater impact on the target audience than any of the other tools in the

promotional mix.

3. A well-structured public relations campaign can result in the target market being

exposed to more detailed information than they receive with other forms of

promotion.

4. Potential clients are more receptive if they recognize the company¶s name and

have read about the company in the press. People make buying decisions on the

basis of the company¶s reputation. It also helps reassure existing clients that they

have made the right choice.



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DISADVANTAGES OF PUBLIC RELATIONS

1. While public relations uses many of the same channels as advertising, such as

newspapers, magazines, radio, TV and Internet, it differs significantly fromadvertising in that marketers do not have direct control over whether a message

is delivered and where it is placed for delivery.

2. Even if your story does achieve coverage, you have no control over how it

appears. You can do your best to ensure accuracy by presenting it in a clear and

concise way but even where material is submitted in writing, you have no say

over if it is edited and whether it retains the same news angle

3. With PR, there is always a chance that a well devised news event or release will

get ³bumped´ from planned media coverage because of a more critical breaking

news story, such as wars, severe weather or serious crime.



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PER S ON AL S ELL ING

Face-to-face interaction with one or more prospective purchasers for the purpose of

making presentations, answering questions and procuring orders.

This tactic provides a more interpersonal relationship with customers. Within the B2B

market, the decision making process is more complex than in a B2C market and

because of this personal selling is chosen as a means of giving greater details and

feedback on the services and promotions provided by the company.

OBJ ECTIVE S:

To increase awareness and interest of new or upgraded services

To encourage trial of new or upgraded systems

ADVANTAGES OF PERSONAL SELLING

1. Engages communication on a one-to-one basis where instantaneous feedback is

possible.

2. It is a two-way form of communication so messages can be delivered other than

that intended.

3. The interactive nature of personal selling also makes it the most effective

promotional method for building relationships with customers, particularly in the

business-to-business market.

4. In comparison with the mass media, personal selling allows for the receiver to

focus attention on the salesperson, with reduced likelihood of distraction or noise.



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DISADVANTAGES OF PERSONAL SELLING

1. There is a high cost in maintaining this type of promotional effort.

2. Control over the message delivery is often very low and, while the flexibility is an

advantage, there is also the disadvantage of message inconsistency.

3. If the customer has had a bad experience with a sales person, this may

discourage a sale or even interest in the company.



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S TR A TEG Y

SAL ES PROMOTION S

A combination of sales promotions activities would be undertaken to in turn boost sales

as well as encourage new customers to try the services provided by Cable and

Wireless. Some of these activities would be explained in further detail below:

³Fi rst T ime Reg istrat ion 5% D iscount´- This is a scheme that will take place

quarterly aimed at new and potential customers in an attempt to boost sales. For

each new customer¶s registration, a 5% discount will be given on the total cost of

the package or service that the company applies for.

³F ree ma intenance for all on-t ime payments´- This activity is an attempt to

encourage timely payments in order to lessen the amount of debts in the

company¶s accounts. It will be done every four months. Every company, whether

existing or new, that covers all its expenses within the given credit period will be

allowed 2 full months of free maintenance to all their telecommunications

systems.

³F ree Upgrade Tr ial´- The telecommunications industry is constantly advancing

and upgrading its technology with newer and faster ways of saving time and

increasing efficiency and production. This promotional activity is aimed at making

customers aware of these changes and encouraging them to upgrade old

systems or purchase new systems. Cable and Wireless would offer a 2 month

free trial period of these systems to all of its existing customers.

DIRECT M A RKETING

Cable and Wireless utilizes direct marketing as a main part of its communications mix.

Some of these activities that will be used include:



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Catalogues- A high quality catalogue displaying specific details on each service

that the company offers would be distributed to all customers as well as potential

customers. Details on the service itself will be offered, prices, information on how

these services can be of assistance to the customer, specific instructions on how

to obtain these services as well as an order page where customers can identify

specifically which services they are interested in. There will also be an option to

choose a standardized package or a customized package depending on the

customer¶s specific needs. Important contact numbers will be provided if any

problems in the order process may arise.

Direct Ma i l- The utilization of the internet and e-mails would be used for all

promotional activities to make the customers aware of these promotions. For the³Free Maintenance for all on-time payments´ and ³Free Trial´ promotions, e-mails

would be sent out to potential customers 2 weeks prior to the scheduled date the

activity would take place. The e-mail would include a cover page of the

company¶s logo, name and colors, headquarters address, important contact

information, the company¶s website, e-mail addresses of supporting personnel

and specific information on the promotion. Attached to this cover sheet would be

full specifications and terms and conditions about the promotions. Examples of

the cover sheets would be provided on the following page.


Cable and Wireless would follow one main public relations activity:

Customer Outreach Programme- This would be conducted on a half yearly

basis where surveys, via questionnaires, would be done and a forum would be

held where customers could view their opinions on the services provided by



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Cable and Wireless. There would be free discussion on improvements, glitches

in the systems and any other problems faced by the customers.


Besides the routine visits to potential customers, personal selling would be done

alongside the sales promotion activity ³First Time Registration 5% Discount´ which

would be conducted on a quarterly basis. Relevant personnel would visit the companies

to in an attempt to sign them as a new customer to Cable and Wireless. The sales

person would be given proper business attire customized with the company logo and

name on the left corner of the shirt and the person¶s name on the right. Details of

relevant services provided would be explained to the customer and catalogues (asdescribed in direct marketing) would be distributed.



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B UDGET

A CTIVITIE S Y EA R 1

Revenue 2135

Cost of Sales 1215

Gross Margin 920

Operat ing Costs : Wages and Salaries 285

Communication Costs

Sales promotions 60

Public Relations 26

Direct Marketing 14

Personal Selling 33

Training and Staff 57

Market Research 44

Maintenance 127

Interest 24

Other 12



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682

Depreciation 172

Operat ing Prof i t 66

MEAS URING A ND CONTRO LL ING COMMUNIC A TION S METHOD S

SAL ES PROMOTION S

Measure the sales promotions objectives to the actual outcome of the strategies

used

³Fi rst T ime Reg istrat ion 5% D iscount´ & ³F ree Upgrade Tr ial´

For this promotional activity the following methods would be done to evaluate its

effectiveness:

Measure number of new customers

Measure number of potential accounts

Compare sales figures before and after the promotional activity

³F ree ma intenance for all on-t ime payments´

Measure all collections received by due date

Compare with previous months performance



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Compare performance prior to the promotion

Measure cost of promotion and compare between the increase in collections

versus the cost of the promotion


Measure sales revenue achieved per visit/ per individual

Keep track of the number of new orders, customer or potential customers

Compare expenses to revenue generated

Evaluate the sales person¶s selling skills by sending questionnaires to the

customers for feedback

DIRECT M A RKETING

Keep track of the number of visits to the company¶s website and frequency of

visits to the website.

Number of enquiries

Number of purchases

Build a database to track customers




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Measure the effectiveness of the process of communication and the impact of the

programmes on the target audience

Collect press cuttings and record the number of mentions the organization

received in electronic media.

Number of enquiries following the appearance of an article or broadcast

programme

Review public relations activities as compared to cost-effectiveness



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B IB L IOGR A PH Y

Blythe, J. Essentials of Marketing. 3 rd ed. Pearson Education Limited

Fill, C. 2005. Marketing Communications: engagement, strategies and practice .

4 th ed. England: Pearson Education Limited

Kotler, P. and Keller, K.L. Marketing Management. 13 th ed. New Jersey: Pearson

Prentice Hall

Wright, R. 2003. B usiness to B usiness Marketing. Financial Times Press

Cable and Wireless., 2009. A nnual Repot 2008-2009.

[Cited 10 March 2010]

BT Group PLC. 2009. A nnual Report 2007-2008 .

[Cited 12 March 2010]

Documents

MARKETING COMMUNICATIONS LISA 2010