Verizon Communications, Inc., the parent company of Verizon Wireless, employs its marketing mix or 4Ps to maintain a top position in the telecommunications market. The marketing mix specifies the strategies and tactics used to implement a marketing plan, inclusive of the variables of product, place, promotion and price (4Ps). In this case, the company’s marketing mix or 4Ps involve heavy use of advertising as a way to promote services to target customers. These products are developed with high quality standards as a way to differentiate from the services of competitors in the market. For example, Verizon Wireless services have relatively higher quality compared to other wireless telecommunications services. Such product condition also affects the company’s pricing strategies. A suitable combination of the 4Ps leads to the successful execution of the marketing plan and, consequently, contributes to business success. Considering the success of the business, Verizon’s marketing mix serves as an appropriate example for operations in the information and communications technologies and services industry.
Verizon’s marketing mix guides managers in developing strategies and tactics to support business growth, especially in terms of capturing a bigger market share. The details of the 4Ps determine the suitability of certain tactics used to interact with target customers. However, managers must also recognize that these 4Ps are changeable based on market and industry conditions, and depending on the needs of the business. For instance, the company’s marketing mix evolves to account for factors like the operational needs of Verizon Wireless and the dynamics of the wireless telecommunications market.
Verizon’s Products (Product Mix)
This component of Verizon’s marketing mix specifies the kinds of outputs that are offered to target customers. The set of all products, also known as the product mix, defines the company’s offerings and much of the rest of the 4P variables, namely, place, promotion, and price. For example, the products of Verizon Wireless affect how these products are promoted to target customers in the telecommunications market. After its reorganization in 2017, the company now has a product mix with the following main product lines:
This product mix is a result of the company’s reorganization, which aims to streamline the business and focus on the core and most profitable segments of its operations. Thus, Verizon’s organizational structure directly reflects the products that the organization offers to target customers in information and communications technologies and services markets. Wireless products are mainly focused on the services available from Verizon Wireless. On the other hand, Residential products include Internet access, and telephone and television services. For example, the company’s Fiber Optic Service (FiOS) and operations in the media and telematics markets are in this product line. Business products include cloud-based IT solutions for businesses. Based on this component of the marketing mix, Verizon Communications, Inc. has an evolving product mix that relates with changes in the market, especially with regard to the advancement of relevant technologies.
Place/Distribution in Verizon Communications, Inc.’s Marketing Mix
The places or venues for transactions with customers are identified in this component of Verizon’s marketing mix or 4Ps. These places enable the company to distribute its products to target markets. Thus, strategic locations are needed to maximize the company’s market reach, and influence Verizon Communications, Inc.’s operations management strategies. The company employs the following places or venues to distribute its products and transact with customers in the integrated telecommunications market:
- Stores and authorized retailers
- Official websites
- Authorized distributors
- Online and other media
Verizon stores and authorized retailers, along with official websites, are the company’s primary places or venues for distributing its products and transacting with customers in target markets. For example, customers can register and pay for wireless telecommunications services through the official website of Verizon Wireless. On the other hand, the company employs authorized distributors for some of its products, such as its enterprise technology services. Also, the company’s offices function for some transactions, especially with customers of the company’s solutions for businesses. In addition, considering the company’s mass media business operations, online and other media are now used to distribute and deliver corresponding products to target customers. Therefore, in this component of the marketing mix, Verizon Communications, Inc. adjusts its strategies and tactics to account for the development of the business.
Verizon’s Promotion (Promotional Mix)
This component of the marketing mix specifies the strategies and tactics used to promote the company’s products. For example, the promotional mix determines how Verizon Wireless promotes its services in the telecommunications market. Promotion or marketing communications affect the company’s ability to attract and retain customers amid competition. Verizon Communications, Inc. uses the following promotional tactics:
- Advertising (primary)
- Sales promotion
- Personal selling
- Public relations
Advertising is the company’s primary way of promoting its products to target customers. For example, Verizon Wireless advertises its high quality services on television and other media to attract and retain customers in the United States. On the other hand, sales promotion usually takes the form of discounts and special offers. For instance, Verizon Wireless occasionally has special offers to gain new customers for certain products and product bundles. Personal selling is generally used in the company’s stores to persuade customers to subscribe to current or new services. Verizon Communications, Inc.’s corporate social responsibility strategy determines the public relations programs used in this part of the marketing mix. For example, the company promotes its services by sponsoring regional or national events for sports, culture, music, and entertainment involving national organizations. Such sponsorship aligns with the company’s corporate citizenship efforts. The tactical elements in this component of Verizon’s marketing mix are typical of firms in the industry. The heavy use of advertising is especially common in the telecommunications market.
Verizon’s Prices and Pricing Strategies
The price ranges and price points of products are determined in this component of Verizon’s marketing mix. Prices moderately affect the company’s profit margins and product attractiveness, based on the moderate price sensitivity of customers, as shown in the Porter’s Five Forces analysis of Verizon Communications, Inc. In this case, the company employs the following pricing strategies to optimize the performance of its products in the telecommunications and related markets:
- Premium pricing strategy
- Value-based pricing strategy
In using the premium pricing strategy, Verizon’s generic strategy and intensive growth strategies emphasize high quality of services as a differentiating factor. This factor enables the company to set relatively higher prices compared to competitors, especially in the telecommunications market. For example, with relatively higher quality of wireless telecommunications services, Verizon Wireless has higher prices compared to competitors like Sprint Corporation. On the other hand, the value-based pricing strategy determines price points and price ranges based on customers’ perception on product value. The prices of Verizon Wireless products are partly determined based on how target customers value them. However, the value-based pricing strategy is more notably used in the company’s bundled solutions for corporate clientele. The strategies in this component of the marketing mix or 4Ps are based on Verizon Communications, Inc.’s positioning, as well as the high cost of developing and maintaining high-quality infrastructure.
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- Verizon Wireless – Official Website.