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Talk Talk Plc and its Service Marketing - Literature review Example

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The intention of this study is TalkTalk Plc as the UK’s third largest communications network operator and had been in business for the past 16 years. Formerly affiliated with the Carphone Warehouse (CPW), it has recently demerged and now operates independently. …
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Talk Talk Plc and its Service Marketing
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Download file to see previous pages ecided on maintaining market transparency and competition rather than resort to prescriptive regulation to protect consumers’ interests (Annual Report 2011, p. 11). 2.1.3 The UK government has made it a priority to support and fund the rollout of superfast broadband networks in rural communities. This should aid in the development of viable markets in places in the UK which were considered economically unfeasible (Annual Report 2011, p. 9). 2.2 Economic 2.2.1 The protracted recovery in the broad economy and the continued economic weakness in the European region will continue to influence the performance of UK business in general, including internet service providers (Annual Report 2011). 2.2.2 Competition is fierce such that if network services proved unreliable compared to the rival firms, this creates customer churn (turnover). The cost of switching among ISP services is low and therefore customers may easily abandon their service in favour of a rival firm (Annual Report 2011). 2.3 Social 2.3.1 Social networking continues to gain momentum among internet users, aside from the growing dependence on the internet as a source of information for work and school. In addition, the continued popularity of television as a broadcast entertainment medium presents an opportunity for the convergence of television content with ISP services (Annual Report 2011). 2.4 Technological 2.4.1 Data security and integrity is a continuing concern in the digital telecommunications industry. Loss of customer data attributable to data protection breaches may damage the firm’s reputation and cause the imposition of fines (Annual Report 2011). 2.4.2 The development in fibre optic technology has begun to push demand for fibre access, precipitating the need for wholesale product development that...
This essay discusses that TalkTalk is presently making a bid to gain higher quality service and thereby improve the profit margins, even at the expense of losing 43,000 or more customers who have chosen the company only on the basis of low prices. By doing so, the firm adopts a bolder strategy that accomplishes the twin purpose of (1) adjusting from weaknesses created by the recent demerger on the one hand, and (2) assuming a better position to address the increasingly competitive environment in the face of a challenging regulatory and economic environment. PESTEL shows that there are challenges as well as opportunities which face the entire industry. SWOT shows that TalkTalk is equipped with strengths in the form of technological innovations and strategic partnerships, and that its weaknesses are being remedied by adopting a revised strategic outlook and resolving its problems with service quality, customer billing problems, and lacklustre performance. TalkTalk is innovating in its service product, has the advantage of place and time, is rethinking its price strategy, and linking promotional efforts in a meaningful way to people’s economic realities. Process, physical evidence and people are seen to support the innovations being adopted in the product strategy. Finally, the firm is adopting more profitable service strategies as defined by Lovelock and Wirtz in building loyal ties based on quality, adopting greater transparency in handling complaints, and providing enhanced service quality and productivity. ...Download file to see next pagesRead More
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