Verizon Communications Inc. employs its marketing mix or 4P to maintain its 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 4P involves heavy use of advertising to promote services to target customers. These products are developed with high quality standards to differentiate the company from competitors, like T-Mobile, AT&T, and Alphabet’s Google Fiber. Verizon’s wireless services emphasize high quality, which affects the company’s pricing strategies. This combination of the 4Ps leads to an effective marketing strategy, the successful execution of the marketing plan, and business success in fulfilling Verizon’s mission statement and vision statement. Verizon’s marketing mix serves as an example of success for operations involving information and communications technologies in the telecommunications 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 4P determine the suitability of certain tactics used to interact with target customers. However, managers also recognize that these 4Ps are changeable based on market and industry conditions and business needs. This marketing mix evolves to account for operational needs, the strengths and weaknesses noted in the SWOT analysis of Verizon, and the dynamics of the telecommunications market.
Verizon’s Products (Product Mix)
This component of Verizon’s marketing mix specifies the kinds of business 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. The branding and characteristics of Verizon products affect how these products are promoted to target customers in the telecommunications market. Verizon’s product mix involves the following main product categories:
- Personal services
- Home services
- Business services
- Devices and accessories
In this component of the marketing mix, Verizon’s personal services include mobile plans, and home services include residential Internet plans, like the company’s Fiber Optic Service (FiOS). The company’s business services provide mobile connectivity, business Internet, networking equipment, and IT solutions. Products in Verizon’s marketing mix also include devices, such as Apple’s iPhones, Samsung’s Galaxy devices, and Google’s Pixel smartphones, which are usually bundled with mobile plans. The accessories include phone cases, chargers, and headsets.
This product mix is a result of Verizon’s efforts to streamline the business and focus the marketing mix and marketing strategy on the core and most profitable segments of its operations. Verizon’s organizational structure (company structure) reflects the products that the organization offers to target customers in information and communications technologies and services markets. Based on this component of the marketing mix, Verizon Communications Inc. has an evolving product mix that relates to changes in the market, and an evolving marketing strategy that accounts for the advancement of relevant information technologies.
Place/Distribution in Verizon’s Marketing Mix
The places or venues for transactions with customers are identified in this component of Verizon’s marketing mix or 4P. These places enable the company to distribute its products to target markets. Verizon employs the following places, venues, and channels in its distribution strategy in the telecommunications market:
- Stores and authorized sellers
- Official websites and apps
- Authorized distributors
The places in Verizon’s marketing mix include stores and authorized sellers, along with official websites and apps designed for the company’s target markets. For example, customers can register and pay for wireless telecommunications services through Verizon’s official website and apps. On the other hand, the company’s marketing strategy 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 this component of the marketing mix, Verizon Communications Inc. adjusts its strategies and tactics to account for the development of the business. Strategic locations are needed to maximize the company’s market reach. These places relate to the location strategy in Verizon’s operations management.
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’s wireless services are promoted in the telecommunications market. Promotion or marketing communications affect the company’s ability to attract and retain customers amid competition. Verizon 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 advertises its wireless 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. In its marketing mix, Verizon 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’s corporate citizenship and 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 marketing strategies in the telecommunications market.
Prices & Pricing Strategies in Verizon’s 4Ps
The price ranges and price points of products are determined in this component of Verizon’s marketing mix. Prices affect the company’s profit margins and product attractiveness, based on the price sensitivity of customers, as shown in the Five Forces analysis of Verizon Communications Inc. In this case, the following pricing strategies optimize the performance of Verizon’s products in the telecommunications market:
- Premium pricing strategy
- Value-based pricing strategy
- Bundle pricing strategy
In using the premium pricing strategy, Verizon’s generic competitive strategy and intensive growth strategies emphasize high quality of services as a differentiating factor. This factor of the marketing mix enables the company to set relatively higher prices compared to competitors in the telecommunications market. For example, with its quality of wireless telecommunications services, Verizon’s wireless services are priced higher compared to some competitors. On the other hand, the value-based pricing strategy determines price points and price ranges based on customers’ perception of product value. The prices of Verizon’s 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 solutions for corporate clientele. Verizon’s marketing mix also involves a bundle pricing strategy for products that are grouped together, such as smartphones bundled with mobile Internet plans. The strategies in this component of the marketing mix or 4Ps are based on Verizon’s positioning, as well as the high cost of developing and maintaining high-quality infrastructure.
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